New home builds in Simpsonville are a great value. Energy costs are lower, warranties make it less costly to deal with issues, and things just don't break as much with a newer home. Those are the long-term savings inherent with a new home. There are also ways you can cost yourself a great deal of money or time.
Want to know how to avoid those pitfalls and save yourself the cash and migraine meds? Read below and contact me with questions.
1. Get representation from a Buyers Agent.
I have news for you: that builder representative behind the desk at the model home doesn't represent you. Their goal is to sell houses. They do a great job, and they aren't against you, but they represent the bottom line for a company.
Even so, I love working on the other side of the table from a builder agent and so should you. They provide extremely valuable, highly specialized information unique to their floor plans and neighborhood. A buyers agent like me can protect your best interest, give you relevant market information, and keep everyone honest. But, if you want to know if bronze hardware is an option in the upstairs bonus room, you have a builder agent for that.
Here's how a buyers agent will save you money: a buyer agent will know or find out how much inventory the production builder is going to have and when, and which builders are open to help you pay closing costs (Sometimes that's $4,000 - $7,500). There's more:
You do not pay for a buyer's agent.
IT IS FREE.
The consult, the service, the negotiation, the customer support, the connections to vendors after close, it's free. I know, I can hear you saying it now:
"But nothing's free!"
Exactly. Up until recently, builders didn't pay agents, until they realized that we brought them tons of business. Then they wrote us in to their marketing budget. Buyer agents fees are free to you, and it helps me fund my adventures.
"But why can't they just drop the price for me?"
If you think a home builder will cut you a deal by cutting out the buyer agent, think again. Either the builder pockets the money they would have paid your agent or they write it off as a marketing expense. That's it. It allows them to list their "sold" price as high as possible, which looks good and helps them maintain prices. Remember, they are unemotional and care about the bottom line. This pertains to Meritage/Legendary, Mungo, Ryan Homes, Eastwood, D. R. Horton, Crown Builders, and every other home builder out there.
Why waste your time and use only one half of the services available to you? Use a local agent to Simpsonville neighborhoods. It is always a good decision, even it it's not me. (And remember- buyer agents are cool people too.)
2. Know the best times to buy a new home.
"End of quarter and end of year are the times when a builder may offer incentives..."
End of year and end of quarter sales are more likely to result in a discount or incentive - many builders are publicly traded and want to show good numbers when they report to the big shots running the company.
"A new phase being built means older homes will jump in value - sometimes significantly!"
Before or after a new phase opens -- typically, the opening day of a phase II means a $10,000-$15,000+ jump in home values (and prices) of phase I homes. Ask, or make sure your agent finds out for you.
3. Choose the right builder.
Always consult your agent about this one. A good agent has done walkthroughs on homes during the dirt, framing, and pre-drywall phases with each builder to understand their product. Each builder has a different "bang for the buck" regarding quality, upgrades, warranties, location, etc.
You could end up spending more money upgrading or fixing problems if you choose the wrong builder. Don't do that.
Every builder is different. Buying in the Simpsonville / Five Forks area could look something like this:
- Meritage / Legendary homes: The value is low price per square foot with big rooms.
- Ryan Homes: The Toyota of home builders, standard Granite countertops and other energy efficient qualities.
- D. R. Horton: Fantastic floor plans, great options.
- Crown Builders: A wonderful home built in less time.
- Mungo Homes: Huge lots, wide range of options on interiors.
These are simple examples similar to what many clients notice about builders. The only way to find the right one for you is to experience one yourself!
4. Consider your lending options.
The builder would love it if you used their lender. Sometimes their lender is under the ownership of the builder (similar to buy-here-pay-here establishments). These can be a spectacular option for you, however sometimes an independent mortgage broker can secure a lower rate by using another lender that is a better fit for you. For example, there are loans specific to doctors (even if in residency) that allow $0 down. Do your research, ask your agent for options other than that of the builder so you can decide what is right for you.
Best part about speaking with a lender? It's free, it takes 15 minutes or less, and you can find out exactly what you can afford. Have a question for a lender or ready for pre-approval today? Call your preferred lender or or Nate Gafken with Hanover Mortgage at (864) 905-1282 (Full Disclosure: Nate occasionally treats me or my team with tasty meals and teaches us about the latest trends in the lending world.)
What questions do you have about buying a new home? Do you have an agent? You can reach me here and I'll reply as quickly as possible.
David Davidson represents home buyers in the Greenville, Spartanburg, and Simpsonville areas of Upstate SC. He is a member of GGAR, NAR, a graduate of Clemson University, and a lover of all things tech. When he is not selling houses you will find him riding or volunteering at a local mountain bike trail.