Important Disclosure on Buying a New Home Directly from the Builder with your Buyer’s Agent’s Help
1. When buying a new home directly from the builder, all real estate commissions are paid by the seller (builder) and not the buyer. After receiving this information, we hope that you may rest easy and be ready to receive help from a Realtor®/buyer’s agent.
2. The home price is also not changed whether you register a buyer’s agent as the initial procuring education for your interest to possibly buy a home from the builder.
The builder does not charge you more or less on who you bring to the table as your buyer’s agent – the home pricing is determined by the site location (i.e. has views or a more private lot), type of home (model/floorpan size, number of beds/baths) and upgrades and options that you are buying.
3. You are also not obligated to make a purchase once you meet a with your buyer’s agent at the site. Expect however that when you first visit the model homes with your agent, you and your agent usually sign a registration form with the builder. This is not an obligation to purchase. You are also not obligated to use the same agent if you decide to buy a re-sale home or in another community.
4. Whether you have a buyer’s agent or not, you are still buying the home directly from the builder (the seller). The builder’s sales agents typically appreciate having another professional help with the communication and informational process as they are dealing with so many buyers (both serious and non-serious) all at once by email, phone, or in person especially when homes are in demand.
What to Expect – Reservation Process and Buying a New Home
There is an entirely separate process of reserving a site location, selecting a floor plan and agreeing to pricing and terms in writing, being prequalified to financially make the purchase (whether cash or loan), and also making an actual check deposit and signing contractual purchase agreements in the presence of the builder sales agent and hopefully your buyer’s agent before you are contractually obligated to purchase and after a cancellation period expires. You could do all this process all by yourself or you could at least have your own buyer’s agent as an additional set of eyes/ ears to watch out for you while the builder’s sales agent watch out to move as many homes for the builder quickly.
The new homes are sold directly to pre-qualified buyers who have undergone through a new home reservation process. Since homes and premium locations are limited, there is typically a priority list of buyers who are on stand by and ready to make a decision to at least reserve a site with an earnest money deposit check. There is a cancellation period to allow you to cancel should the home is not the right one for you. Pay careful attention with your buyer’s agent as you peruse the builder’s contract paperwork on when your earnest money deposit becomes “hard” or at risk.
If you have serious interest, let us help you through the reservation process especially if you live out of town, state, or have to drive far, or just plain want to save your time. You may also call 760-798-9024 and we are happy to help you.
Additional Insight on Buying a New Home in San Diego
You are encouraged to do your due diligence with the guidance of a buyer’s agent working on your side during all phases of the discovery, selection, and buying process of a new home which includes third party appraisal, home inspection, etc. Just like when you have an agent guide you in buying a re-sale home – there are nuances yet share many similarities and benefits.
Phase 1 Process – From Interest to Commitment
A few initial things you can expect from buying a new home directly from the builder with the help of a Realtor®
- Initially sign up to an interest list by providing your contact information to your buyer’s agent (this will be shared with the builder)
- Receive updates from your buyer’s agent on the construction progress (by visiting personally or having your buyer’s agent send you videos and photos by text, photo, email, Skype, etc)
- Review preliminary site plan to start identifying possible locations for the type of home you like
- Identify a few site locations; plan for A, B, C options in case the first choice homesite is not available. Communicate this site location preference to your buyer’s agent who will then monitor the site availability for you.
- If you are still showing interest to your buyer’s agent in moving to this new community – expect to receive reservation instructions from your buyer’s agent on how to lock in specific lot (typically requires an earnest money deposit and pre-qualification consultation with the lender to show the builder that you are qualified to pay in cash or to finance). This is not a sales tactic. This is to prepare you for what you should have in place in advance to get you to a strong position when the homes are up for grabs.
- Your due diligence should be ongoing. With your buyer’s agent help, find out as much information about the area, property taxes, etc. If already available, review environmental and neighborhood disclosures as they become available from the seller/builder with your buyer’s agent.
- Once you have made an initial positive decision to move from where you live now to the new community, it is time to make an earnest deposit and take care of the reservation process with your buyer’s agent as quickly as you can so you are on top of the official waiting list.
- Once you have affirmed your decision, sign a purchase contract typically as the sales office with the builder’s sales agent and also with your buyer’s agent present to help you review a multitude of documents prepared by the builder.
- You are allowed a period of time to cancel without losing your deposit after contract signing. You and your buyer’s agent will be aware of this specific date just in case you change your mind.
Once you have secured the home, there will be a lot of “waiting around” for the community or homes to be built.
This is the golden period of time to take care of your own house (assuming you need to sell, rent, or expire your lease), get your house and possessions in order for the move and if you need financing to buy a new home – work directly with your preferred lender to gain their commitment to lend you the money to buy the home (loan pre-approval process).
In the meantime, directly respond to the builder’s sales representative to make appointments for any designer upgrades/options.
Expect to have direct communication from the builder even as you have a buyer’s agent helping you when buying a new home
Whether you have a buyer’s agent or not, you will also have many direct opportunities to deal directly with the builder to execute on the logistics of buying a house directly from a builder.
We know this from experience in successfully guiding our families and customers in buying new homes in San Diego direct from builders.
See the exciting process of Auberge’s construction through our monthly video updates by clicking here.
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Your agent works hard for you so you can attend to other things that require your attention
We work hard and dedicate our resources to give the you information that you need to help you make a decision whether this is the right move for your or not. To affirm your choices and decision, we lend you our local knowledge and expertise to know of all your 55+ housing options in San Diego County whether in age-restricted or non-age restricted communities.
Your agent is always available to be your resource and guide
We also happily make ourselves available by phone, email, or meet in person to consult with you and answer questions, or help find answers to your questions. Think of having a buyer’s agent in addition to the builder’s sales representative, as additional set of eyes/ears/ thinking mind to make the purchase process easier for you.
If you would like Ken Tritle to be an additional resource for you during your purchase of a new home, just fill out the interest list and make an appointment to see the site together once it is available for public viewing.
Buying a new home can be fraught with stress as it also involves moving. Let us help you simplify the process.
It is a very simple process – we have found that simple acts of keeping our buyers informed through the process reduces their stress and allows them to focus attention on the myriad of little decisions and processes that they have to go through in selecting, finding, financing, buying a house, then moving, and paying attention to details of reams of paperwork put in front of us.
We hope we have persuaded you to have a buyer’s agent help you with the process.
We are grateful for your trust – and we are here to give you excellent service and results.
If we could take some of the burden of the stress of moving and buying a new home, then let us be of help.
Questions on buying a new home? You may send us a message here or simply call 760-798-9024.