New Construction

Are you thinking of buying something brand new? If so, this article may be very helpful for you. New construction is a popular choice for many people. New construction consists of condos, townhomes, PUD's (planned unit developments). Most of time builders will have a "model home" or a "sales office." If you are considering buying new construction and want to be represented and protected, FIRST talk to your real estate agent; do NOT go to the model home without first talking to your agent. Most of the time (depending on the builder) if you do not have a real estate agent with you, the "model home agent" (the builders agent) will have you fill out a form with your information. Once they have this information, they are really under little or no obligation to pay your real estate agent.
I am currently working with a client that went into a new construction site and told the "model home" agent that they currently didn't have an agent, but that they wanted one and wanted to be represented. The "model home" agent said "that's fine" and had them fill out a information sheet. A couple days later they called me and said "Caleb, we want you to represent us on this new home." I asked if they had filled out any paperwork with the builders agent; they told me they had. I basically said I will see what I can do and sure enough the other agent isn't going to work with us.
Potential buyers need to know that the "model home" agent is working for the builder. They have a legal obligation to get the builder the most money. They also are looking out for themselves; they obviously want to get paid the most money. Usually for new construction if a buyer comes in and doesn't have an agent and ends up buying a home/townhome/condo/etc the "model home" agent will receive an extra 1%. The agent really has no obligation to you.
If you are looking at buying new construction make sure you talk to your agent. Have your agent give you a stack of business cards and if you ever go to a "new construction site," give the model home agent a business card of your agents and ask them "do I need to come back with my agent before we look at this subdivison" Your agent will be able to get you the best deal! Plus, you don't pay your agent anything to have them represent you. If you have any questions about new construction please feel free to give me a call

10 Steps to Prepare for Homeownership

1. Decide how much home you can afford. Generally, you can afford a home between two to three times your gross income.

2. Develop a wish list or Christmas list of things you'd like your home to have. Prioritize the items on your list.

3. Select a few neighborhoods that you would enjoy living in: Consider items such as schools, recreation facilities, area, distance from work, safety, etc

4. Determine if you have enough money saved to cover your down payment and closing costs. Also, talk to your agent (Caleb Wertz) about having the sellers pay for your closing cost. Closing costs, including taxes, and title fees average between 2 and 7 percent of the home price.

5. Get your credit in order. Obtain a copy of your credit report.

6. Determine how large a mortgage you can qualify for. Also, explore different loans options and decide what's best for you.

7. Organize all the documentation a lender will need to preapprove you for a loan.

8. Do research to determine if you qualify for any special mortgage or downpayment assistance program. If you are a first time home buyer in Utah, you may qualify for a special interest rate. Go to www.utahhousingcorp.org for more information.

9. Calculate the cost of homeownership, including property taxes, insurance, maintenance, and association fees, if applicable.

10. Give Caleb Wertz a call and he will help you through the process.

For other articles or to see homes for sale go to www.utahsonlinehomes.com