New Construction

Why bring your own agent to the builder

The sales team at a new community is there to sell the builder’s homes, and they’re often very good at it. Their job is to represent the builder. Mine is to represent you.

With your own agent, you have someone to compare base prices and upgrade costs, read the builder’s contract with you, keep track of deadlines, and push for answers when the schedule slips.

Talk to me before your first visit. Many builders ask that a buyer’s agent come along to the first visit, or be registered with the sales office, for that agent to represent you on the purchase. [Tarah: confirm or adjust this based on the builders you’ve worked with locally.]

How I’m paid works the same way as any purchase. We agree on it up front, and I ask the seller, in this case the builder, to cover it.

Builder contracts are different

Most builders use their own purchase agreement, not the standard form used for resale homes. It’s usually written to protect the builder. That doesn’t make it a bad deal, but it does mean reading it closely.

Things to look for

• Deposits. How much is due, when, and whether any of it is refundable.
• Completion dates. Whether the date is an estimate, and what happens if it moves.
• Price changes. Whether the price can change for materials or upgrades after you sign.
• Upgrades and change orders. What each costs, when selections are due, and whether changes after that point carry fees.
• Inspections. Whether you can bring your own inspector, and at which stages.
• Financing. Whether you must use the builder’s preferred lender to get an incentive, and what happens if you don’t.

If anything in the contract is unclear, ask a real estate attorney to review it before you sign.

Builder warranties

Most newly built homes come with a builder warranty. Ask for a copy of it before you sign, and read what it covers, for how long, and how to file a claim.

The Federal Trade Commission describes some common patterns. Workmanship and materials on most items are often covered for the first year. Heating and cooling, plumbing, and electrical systems are generally covered for two years. Some builders cover major structural defects for up to 10 years. Every builder’s warranty is different, so go by the document you’re given.

Builder warranties usually don’t cover appliances, which carry their own manufacturer warranties, or small cracks in drywall, tile, or concrete. Keep a written list of anything you notice, and report issues the way the warranty asks, in writing and within its deadlines.

Timelines and delays

A home that’s already finished, sometimes called a spec or inventory home, can close on a timeline close to a resale home. A home built from the ground up takes longer, and the schedule can move with weather, materials, labor, and permits.

Plan for the possibility of a later move-in. That matters if you’re selling your current home, ending a lease, or locking an interest rate. Ask your lender how long a rate lock can last and what an extension costs. I’ll help you line those dates up, and keep in touch with the builder as the date gets closer.

Building permits for homes in Bloomington and across Monroe County go through the Monroe County Building Department, after zoning review by the City or the County depending on location. The builder handles those permits. Your part is asking where things stand.

Questions about the lot and the neighborhood

• The lot. Where does water drain? Are there easements, setbacks, or a floodplain on the lot? Ask for the plat and survey.
• What’s planned nearby. Are there future phases, new roads, or other development planned around the community? The City or County planning office can tell you about filed plans.
• The homeowners association. Is there one? Ask for the covenants, the budget, and the dues, and whether the builder controls the association until the community is built out.
• Restrictions. Covenants may cover fences, sheds, exterior colors, parking, and rentals. Read them before you plan any of those.
• Utilities. Confirm water and sewer service, electric and gas providers, and internet options at that address.
• Landscaping. Find out what the builder includes, such as sod, trees, or a driveway, and what’s left to you.