Purchasing a model home is a bit like buying a vehicle that’s been used only for test drives. We all know that the dealer will offer that car at a discount. Builders will usually provide discount the cost on a model home, as well, even though nobody has ever lived in the house. There are several approaches you can take if you want to make sure that you get the best deal on the model home.
Check All The Model Homes For Sale If Possible
Builders usually sell off homes well before they are built according to the layout and appearance of the model home. It is sensible that they want the model to appear beautifully so they will spare little expense when it comes to decorating it. Many Myrtle Beach model homes include designer paint, free upgrades, as well as designer window coverings. Be sure to check them all out and then choose the model that has the best location, upgrades, and layout.
Hire Your Own Agent
When you are going to the office of a new home sale, be sure to bring your buyer’s agent from Full Potential Real Estate, LLC with you. There are some builders who do not allow your agent to represent you in case you come in unescorted the first time around. Most buyers do not even recall signing anything – and that is how smooth the representatives are at their sales offices. The sales agents of the builders is tasked to be the representative of the builder regardless of what they may tell you. Some of them will use tactics that will pressure you to sign a contract. Your buyer’s agent will represent you. He will be your fiduciary and obligated to look out for your interests. He has a responsibility to disclose all the good things and also the bad things about the deal.
Ask If Anybody Has Occupied The Model Home
This question does not necessarily mean that somebody has actually lived in the model home. Perhaps it was used as a sales office. Don’t forget to ask how long. Even though it is unlikely that the kitchen appliances have been overused, don’t be surprised if the bathroom fixtures are not in tip-top shape. All these details can be used to negotiate a lesser price for the model home.
Check The Comparable Sales
Your buyer’s agent will not be able to get comparable sales from MLS if the builder does not list there, and a lot of them don’t. However, you can still get the data from a title company. You might not be able to know which houses have been sold with what upgrades. The promoted sales price will mean very little. Check how many deeds have been mailed to the property address. How many were mailed on other addresses? This could imply that a few of the homes may owned by some investors, who are usually the first ones who will bail once the market plummets, and one of the reason you are purchasing in a new subdivision is to be close to other buyers who are similar to you and not by tenants.
Get Legal Advice Before Signing A Purchase Contract
You need to hire a real estate lawyer who can review your purchase contract before signing it. Standard purchase agreements exist to prevent people from getting sued however the language used on these agreements do not necessarily protect the homebuyer. Many of these contracts, which can run up to 100 pages, focus on protecting the builder.
Think Of Using Your Own Lender
Builders usually want to work with their own lender because they will keep them informed of your progress. It works something like a one-stop shopping on the builder’s part. However, that lender may not be able to give you the best interest rate or loan. Apart from that, the builder may even own the lending company.
Hire A Home Inspector
You should also hire a qualified and reputable inspector – this should not be anybody within the family or circle of friends. You have to get a real inspector. Be there when the inspection is conducted and be sure to ask all the questions that are running in your head. Defects are not only for old homes, even new ones can have them. Construction workers are humans and they can make mistakes.
Check The Reputation Of The Builder
When a buyer has had a very bad experience with a builder, that will spread like wildfire throughout a community. However, you will not know if that bad reputation is just an isolated experience or maybe the builder has a history of poor service. Whatever it is, be sure to check and of course, verify public records for any lawsuit.
Negotiate The Price
Leaving the furnishings in the model home is a standard practice. The artwork on the walls, the furniture, and things like that remain in the house – if you ask them to be there. You should let them know that you want to keep them without any consideration as well as without warranty when you are putting these things into the purchase contract. You must never be intimidated if the builder’s agent says the price is firm because it is rarely firm. You must learn how to negotiate home prices from a place of strength. Talk to your real estate agent, ask for recommendations.
Try To Purchase The Last Model Home
Watch out of closeout sales because in most cases they come with the best deals. You don’t have to worry that future home sales will carry lower prices. So, if possible, go for the last model home.
Call Full Potential if you are looking for a real estate agent who can help you buy a model home.
Full Potential Real Estate, LLC
Myrtle Beach, SC 29577