Buying New Construction in Fairfax and Loudoun Counties - Guide

For a while, there had been a shortage in the number of homes available for sale in Northern Virginia and this shortage had driven up the price. As such, it was a hassle to find a beautiful home that you could move into, and when you did, the price was enough to scare you away. However, things have taken a turn for the better with the entry of home builders in the market, thus increasing the number of options. Though this is a good thing, knowing how to go about the process is imperative as buying from a builder is quite risky. You see, buying from an individual involves contract agents that are fair to all parties involved, but this is not the case with builders as their agreements favor them more than they do you. As such, if you wish to buy from a builder, it is advisable to engage a real estate agent who is knowledgeable in all matters on building contracts.

The first thing that you will notice when buying a new home is that the builder will have a salesperson on site and their work is to convince you to get the home. They will cover all factors including the available amenities to resale values but the one thing that they will steer clear of is the risks that you face, and this is where a real estate agent comes into the picture.

Here are the TOP things that you will find useful in your new-construction home search:

Read between the lines

Sales agents are very calculated, and there is a motive behind each move they make. On visiting their site office, they will welcome you with lots of information and in so doing; they will aim to know you better by handing you a registration form. Here, you will find general questions, but the one that you should pay attention to is the one on how you heard about the home. There are two options in this regard. You could choose to decline the form politely, or you could fill in that an agent helped you find it. In the second option, you will pave the way for your agent to receive the fees they deserve for directing you and will also protect yourself from an unfair deal. If you choose not to fill the form, that is also alright as they will not push you into doing it.

Get representation

Builders will generally set a percentage of the amount which will go into agents who bring in clients, and it averages 3%. As such, you will pay for the house plus the percentage on top, which is something that builders will not let on in their adverts. You may think that going in without representation could get you a better deal, but this could not be further from the truth. Builders aim to cultivate a positive relationship with agents, and they will not reduce the price for unrepresented buyers as this could create bad blood. As such, whether you bring in an agent or come in alone, the rate remains the same. The wise thing to do is to get your money’s worth.

Know your rights

Buying a home from an individual is quite easy as the terms stipulated tend to be standard and even where there are exceptions, understanding the agreement comes easily. However, the same does not hold for builders’ agreements which contain tens of pages outlining the rights of the builder as well as situations where the builder can back out of the deal where need be. An experienced agent will walk you through all the rights, thus letting you know whether you are getting a fair deal or you should look for another option.

Get your game face on during the negotiation and ask about the incentives

Though most builders stress that they are not open to negotiations, there are circumstances where your agent could get you an unbelievable deal. Say for example that the developer is hell-bent on closing out a development; they will be willing to sell a home to you at a negotiated price. An agent will also take note of the time of month or quarter of the year to gauge your chances of getting a fantastic deal. However, there are situations where the asking price is final, owing to the high number of buyers, and it is up to your agent to know whether there is wiggle room or not.

What is your contingency plan?

It could be that you plan to buy a new home with the money sourced from selling your current home. If this is the case, get your agent to look into the builder’s contingency policies to determine if they are fair to you or not. Some builders will not even consider such plans, and those that do could give you timeframes that are unpractical. As such, you can quickly end up losing out on a new home as well as deposited money. Having an agent by your side will help you gauge if the policy works and your agent will also look into ways in which you could deal with the buyer if they back out such as by instituting specific performance actions.

Get the real price

Base prices are quite attractive owing to how pocket-friendly they are but what builders will not let on is that these sale prices do not include upgrades on the homes. You could think that said upgrades refer to extraordinary appliances but they come down to essential items such as air conditioners and garage door openers. As such, the difference between the base price and the asking price could be tens of thousands. It is always best to get an accurate estimate.

Your agent will also question the builder as to upgrades and options to know whether they can fit your budget as well as advise you on what improvements are the norm for the neighborhood. They will also offer you advice when it comes to financing options to see if you can qualify for a mortgage if the rates change during construction.

Interpret the studies

While you may not know the essence to soil surveys and engineering reports, an experienced agent will know what to look out for in these documents in a bid to gauge whether the homes are structurally sound. This move will save you tons of money in the future. 

Defects

Builders’ contracts will be such that you cannot cancel the agreement on noticing irregularities, but instead, you should allow them time to fix the problems. As such, it is up to your agent to follow through on any necessary amends before closing as the builder will cover such costs.As you can see, most of the work boils down to the real estate agent, and it is, therefore, essential that you get a highly qualified professional when buying a new home. Visit us today at Kutsevich Realty and we’ll get you started on this process.