1. Have your new home inspected by a qualified home inspector.  The best inspection is performed at three separate intervals, foundation, rough-in and completion.  A good home inspection will cost $400 to $600, but it can save you thousands! 

2. Don’t make the mistake of thinking that a home inspection is unnecessary because you’re getting a home warranty. Home warranties expire, construction defects don’t!

3. Have a market analysis of the home and neighborhood by an independent third party.  Otherwise you could be paying too much!

4. Don’t allow the builder to force you to use their preferred lender. If the builder tells you that the “special promotion” or “upgrade package” promised you is only available if you use the preferred lender, that’s illegal!!  RESPA (The Real Estate Settlement Procedure Act) prohibits such activity.  Whatever promotion the builder offers must not be tied to the mortgage!  The “preferred” lender rates are normally higher than you can get on the open market!  For more information go to abawatch.org.  

5. If you use the builders preferred lender, make sure you ask for a copy of the appraisal. Usually, the builder owns the preferred lender.  This is an obvious conflict of interest!  It may be difficult for the lender/builder to appraise the property objectively.

6. There is no such thing as a “free basement”. Enough said!

7. Beware of the “Model Home” effect. Understand that builders spend thousands of dollars to make their models look fantastic!  Look past the “fluff” to see the real home.  Look at other homes constructed by your builder that are not models to see what your home will really look like! Try to see homes that are three to five years old to see how they have stood the test of time!

8. Don’t close until the house in completely finished and you are completely satisfied. Don’t forget, the builder gets paid at closing.  After closing, the motivation to complete your home goes way down.  Your voice is much louder before closing than after!

9. Builders factor a realtor commission into the price of every home.  Whether you have a realtor or not the price is the same!  

10. Don’t build a home without professional representation.  Granted, not all realtors are created equal.  Professional representation is “FREE” to the buyer! The seller pays the commission.  Don’t expect the builder’s sales person will have your best interest in mind.  Find an experienced realtor you can trust who will be with you through the entire process. A good realtor can save you thousands of dollars and ensure you get the home of your dreams!