Evaluating Builders and Contractors in a New Development
When buying real estate in a new development, it is important to evaluate the builders and contractors involved in the project. Here are some key considerations to keep in mind:
Engage a Real Estate Agent: It is recommended to work with a real estate agent who specializes in new construction. They can represent your interests, negotiate with the builder on your behalf, and provide valuable insights throughout the buying process
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Builder’s Agent vs. Independent Agent: The agent in the builder’s sales office represents the builder’s best interests, while an independent real estate agent represents your interests. It is important to have your own agent who can advocate for you and help you get the most value for your money
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Agent Fees: As a buyer, you do not pay the real estate agent fees. The seller or builder typically covers these fees as part of their cost of doing business. Builders rely on outside agents to bring clients to them, so they will not credit buyers the commission they would otherwise pay to a Realtor
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Research the Builder: Before making a decision, research the builder’s reputation and track record. You can check if any liens have been filed against the builder and talk to subcontractors to see if they are being paid. It is also helpful to ask local real estate agents about the builder’s reputation in the community
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Review the Construction Contract: Once you find a reputable builder, it is important to review the construction contract. It is recommended to do this with your real estate agent or a trusted real estate professional. They can help you understand the terms and ensure that your interests are protected
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Consider the Builder’s Team: Evaluate the builder’s team members, such as the architect, general contractor, and property manager. It is important to assess their credibility and experience, as they play a crucial role in the success of the project
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Consult with Contractors: When building a new home, you may need to consult with contractors on various aspects of the construction process. Your real estate agent can help facilitate these discussions and ensure that your needs are met
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Remember, buying real estate in a new development involves careful consideration and due diligence. Working with professionals, such as real estate agents and reputable builders, can help ensure a smooth and successful buying process.