Buying New Construction? Why Use A Realtor?

Should You Use A Real Estate Agent To Buy New Construction In Central Florida?

When looking for a home to buy, you must first decide if you want to buy an existing home or buy a new one. If you decide on buying new construction, you can then decide if you want to use a realtor to help you on this venture.

Here in Florida, there is no rule that requires someone to involve a real estate agent when buying a home whether it’s new or resale.

However, If you look at the pros and cons of using a realtor when buying, the pros will ALWAYS outweigh the cons. Developers can be tough negotiators and try bullying tactics on you so it’s nice to have someone in your corner to make sure you’re getting the best deal.

Here’s a list of some of the top reasons why using a real estate agent can save you time, money, and a whole lot of aggravation when buying a new construction property.


There’s a common misconception that when you work directly with the developer’s rep, you can save a lot of money. This is absolutely false. Think about it for a minute… Do you think that the builders representative is looking out for your best interest or their employer’s best interest? it’s common sense… the rep is going to try and work the best deal they can to benefit the builder…not the buyer!

Not having representation in any real estate transaction whether it’s new construction or not is just a bad idea all around.

An experienced realtor knows how to ask the right questions. Having a buyer’s agent to buy an existing home is extremely important but having an agent with experience in new construction is absolutely critical…

Here are a few questions you can ask a real estate agent to make sure they are experienced with new construction homes.

  • How many new construction homes have you sold recently?
  • Do have a list of lenders that specialize in new construction loans?
  • Why should I hire YOU to buy a new construction home?

Negotiation Skills

Having an experienced buyer’s agent on your team can help you avoid getting ripped off when buying new construction. Buying any new construction home can get expensive real fast. Builders will typically advertise their “Plain Jane” model with no upgrades so that they can mention their cheapest price on a home.

The nice thing about buying a brand new home is the capability to make it your own. However, the more you customize and upgrade it, the more expensive it becomes. Another good reason to hire a Realtor when buying a new construction home is their ability to negotiate for you. Most of the time builders have a list of prices for changes to the floor plans, upgrades, lot sizes, etc.

Contingencies and Inspections

There are many reasons why it’s important to have an existing home inspected, but it’s also to have a new home inspected…, Yes, even if it’s a brand spanking new!

If your Realtor has experience with new construction, they will know exactly what inspections to recommend to you. Builders are humans and humans make mistakes so you have to make sure that your brand new home was built properly. The only to do that with a new home is to have a thorough inspection[s] performed by a credible home inspector.

Could you imagine moving into your brand new home and immediately starting having problems? It can turn what should be a pleasurable experience into a complete nightmare!… This is just 1 example of a contingency on a real estate contract that a realtor would suggest to you.

Professional Recommendations on Upgrades

Buyers are generally given an allowance for items like cabinetry, floor coverings, countertops, fixtures, etc. Experienced Realtors will be able to guide you on what upgrades will actually increase the value as well as what today’s buyers typically look for in a home and why. The last thing you want to do as a new home buyer spends a lot of money on upgrades that won’t give you a return on your investment, especially when it comes time to sell the home.

Most buyers expect to live in their house forever, but the fact is that eventually you will either move…or die.
Assist In Finding A Lender & Financing Options

Your Buyers agent should be able to provide you with a shortlist of quality lenders that specialize in new construction loans. This type of financing is much different than obtaining a mortgage for an existing home. To start, not all lenders finance new construction. It is recommended that when buying a new home, you should try and use a local institution if possible.

Probably the biggest difference between traditional financing for an existing home and for a new construction build is the payment schedule. The lender makes periodic payments to the developer as the project progresses, also known as “draws”. Upon completion of the new home, the buyer will then get a new mortgage to pay off the construction loan.

As you can see, there are a lot of good reasons for hiring a realtor when buying new construction. Having strong representation when entering into a new home purchase is crucial to ensure that you get the best deal.

Still, have questions about buying a new construction home in Central FL? Visit us here or call 407-902-7750 for immediate assistance.

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Orlando Real Estate’s Perfect Storm

In 2014, the Orlando real estate market recovered significantly. Home sale prices rose and continue to rise and at the same time, mortgage interest rates remain relatively low. These conditions created the perfect storm of opportunities for those looking to buy or sell Orlando real estate.

Different real estate markets across the nation are typically labeled as being either a “buyer’s market” or a “seller’s market”, which is what makes the Orlando real estate market so special right now. It’s both a buyer’s and seller’s market! More and more buyers are being attracted to the market yet the number of Orlando homes for sale remains low compared to the demand. The low-interest rates allow homes to remain affordable while the supply and demand still help sellers to get top dollar for their homes.

New Homes Expected To Drive Down Prices of Older Homes

The bad news is that these market conditions won’t last forever. Moving into 2015 more and more Orlando homeowners are expected to put their homes on the market and home builders are busy developing brand new neighborhoods throughout Orlando and Kissimmee. These new homes will create a lot of competition for homeowners that have older homes thus driving prices downward, especially when builders/developers reveal the incentives they will offer buyers to move into one of their brand new homes. Given a choice of buying brand new or used, I can’t think of anyone that would prefer to buy a used home or anything else for that matter, especially when the homes are in the same price range.

No matter what your situation has been over the past few years, chances are that it’s changed. Lately, when I’m asked to provide a potential seller with a free home valuation report, they become both shocked and happy when I show them how much I can sell their Orlando home for. I also express to them how the real estate market is ever-changing and home values can drop just as easily as they can rise.

My advice to homeowners that are serious about selling is that they should explore their options sooner than later. Homeowners should beware of trying to convince themselves of holding off on selling a home solely because they believe that their home’s value will continue to go up.

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New Build Home Or Older Property – Which Is Right For You?

When you are looking for a new home, depending on the area you want to live in, it is likely there will be all kinds of properties that suit your needs in terms of size and location, so a lot of it is down to taste and what works best for your family. Some people have a very strong preference for older or very modern properties, however many of us tend to be on the fence about this. If you aren’t sure whether an older property or a brand new build is going to best suit you and your household, then here are some of the factors you may want to consider:

Older Properties Generally Need More Maintenance

While old houses tend to have more character (though some new builds can have very exciting designs), they have also had more of a chance for things to age and begin to go wrong. You may find you have to replace some things, or that you might experience more issues with the plumbing and wiring than you would in a brand new home. You may also find that there is work you want to do immediately on moving in, perhaps replacing the kitchen or bathroom suite, because they are old or just don’t suit you. If you enjoy doing renovation work, are a DIY fan or simply don’t really mind having to occasionally bring someone in to do repairs, this may be no problem at all for you, but for people who want to simply move in somewhere and have to do very little except unpack, a brand new home is probably a better choice.

It’s Harder To Put Your Stamp On a New Build

Because a new house or apartment is going to come with a brand new bathroom, brand new kitchen, and all the rooms freshly painted, you aren’t going to want to invest in any decorating work or changes to fittings at first, because this would be wasteful. This means you have to really love what is already there, or at least be happy to live with it for a few years. If you prefer the idea of coming up with your own unique style and redecorating as soon as you move in, you may find a house that needs a bit of a facelift is a better choice than a brand new construction. If you aren’t especially interested in painting and decorating your home and would rather have something that is already neat and freshly painted that you can make your own with your furniture, artwork, and other possessions, this is the best idea.

While there are advantages and disadvantages to both older and fresh new properties, the only thing you should really follow is your own taste. If you aren’t sure which you’d prefer it is worth viewing properties of all ages. You may be surprised which one you fall in love with and decide to buy! Keep an open mind and check out all kinds of different places if you don’t have a strict preference when it comes to old or modern builds.

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