Huge Lies New Home Builders Are Telling You!

Are you considering purchasing a new construction home or working with a builder? In the world of real estate, especially when it comes to new construction, there are common misconceptions and potential pitfalls that buyers need to be aware of. In this blog post, we'll explore the five biggest lies or misconceptions often associated with buying new construction homes. Let's dive right into it with Jeremy, your favorite Austin realtor.

1. The Base Price is the Final Price

One of the most common lies associated with new construction is the belief that the initial base price you see is the final cost of your home. In reality, this base price is just the starting point. As you progress through the home-building process, you'll encounter various upgrades and additional costs, such as lot premiums, higher-quality materials, and customizations. By the time you've added all the features you desire, your home's price could increase significantly. It's essential to carefully review what's included in the base price and anticipate additional expenses for upgrades.

2. You Can Fully Trust the Builder

While many builders are reputable and trustworthy, not all of them prioritize the buyer's best interests. It's a common misconception that builders always have the homeowner's back. The truth is that the primary goal of a builder and their representatives is to sell homes. They might downplay issues, overlook potential problems, or make promises that are not always kept. Having an experienced real estate agent by your side can provide an extra layer of protection, ensuring your interests are represented throughout the process.

3. Buying New Construction Will Automatically Save You Money

The idea that purchasing a new construction home will save you money is not always accurate. Builders often offer incentives to attract buyers, such as lender credits, rate buydowns, or design center allowances. However, it's important to consider that some of these incentives might not result in actual savings, as they may be offset by higher interest rates or other costs. In certain cases, buying a resale home and investing in renovations or upgrades might be more cost-effective than opting for new construction.

4. You Can Rely on the Home Warranty

New construction homes typically come with a 1 to 10-year warranty that covers various aspects of the property. However, relying solely on the warranty can be a mistake. Builders may delay repairs, neglect cosmetic issues, or fail to honor their warranty commitments. It's essential to understand the limitations of the warranty and not assume that all issues will be swiftly resolved. A thorough inspection before closing and having an experienced realtor to advocate for your needs can help ensure your new home is built to your satisfaction.

5. You Don't Need a Realtor When Buying New Construction

Builders often suggest that you can save money by not involving a realtor in the purchase of new construction. This is a common lie that couldn't be further from the truth. The reality is that commissions for real estate agents are typically paid from the builder's marketing budget and do not affect the final home price. Moreover, having a realtor on your side offers numerous benefits, such as negotiating better incentives, ensuring that you're aware of all available options, and providing valuable expertise to navigate the entire process successfully.

In conclusion, buying a new construction home can be an exciting venture, but it's crucial to approach it with a clear understanding of the potential pitfalls and misconceptions that can arise. Don't fall for the five biggest lies when purchasing new construction homes. Instead, partner with a knowledgeable real estate agent who can help you make informed decisions and protect your interests throughout the buying process. Remember, having the right guidance can lead to a smoother, more successful experience in the world of new construction real estate.