Thinking of Buying a "New Construction" or "Spec" Home?

For Buyers who have time before they have to move, or who have specific wants, a viable alternative to a pre-existing home is in a class called “new construction”. This consists of homes being built or to be built, as either “spec” or “custom”, in new sub-divisions.


A "Spec" house is a house already under construction or to be built, in accordance with pre-specified materials and plans on a pre-specified lot, and for which the builder has all of the necessary permits. These homes are available for purchase, but you must buy "as is" although you may be allowed to make some changes. These changes are usually cosmetic. Any changes or extras which require changes in the plans and/or permits generally are not allowed.

A "custom” house is one built to your order. You select the model, the extras, and the building lot. Once the purchase contact is signed and the plans are finalized, the builder applies for the necessary permits. When the permits are "in hand", construction will begin, in accordance with the builder’s schedule.

Usually the builder has one or more model homes already built, which are used as sales offices and which contain the many extras available that the builder can provide (at additional cost) in the basic models. Floor plans are available for the different models as well as price lists and samples for the various extras in each model.

THINGS YOU SHOULD BE AWARE OF

1. All homes must comply with all construction, safety and energy codes, and regular inspections are required to ensure compliance. The Building Code permits the builder to hire his own Building Inspector, therefore, the Inspector who does the inspections might not be the municipality’s Building Inspector!!!

2. If you have never visited a model home, you should know that, generally, “what you see ain’t what you get”. The prices you see in ads or on signs – “Prices starting in the low $120’s” “models priced as low as $140,000”, etc - are for the lowest priced “bare-bones” models and are there to induce you to visit the builder’s site. The models you visit have all of the available “bells and whistles” included in them which the builder can provide but at considerable extra cost.

3. The Sales Representative (site agent) you talk to at the Model House is either an agent or employee of the builder. He represents the builder only and his obligations to you are extremely limited. Under the legal concept of “caveat emptor” (LET THE BUYER BEWARE!) you are on your own when dealing with him for the purchase of a new home.

HOW TO PROTECT YOURSELF

4. The prices quoted for the various models have a real estate agent’s commission “built-in” and there is no reduction in price if you purchased a home without your own Agent. . Buying that home through an independent real estate agent WITH KNOWLEDGE OF NEW CONSTRUCTION provides you with “checks and balances” to make sure you understand all aspects of the purchase, that the quality of construction meets proper standards, and that you are getting what you paid for, ALL AT NO COST TO YOU!! When selecting your real estate agent, you should request that the agent represents you as a “Buyer Broker.” Any licensed agent can do this and it ensures that the agent will represent you and act in your best interests only.

As an experienced former builder, and a nationally Certified Residential Specialist, I have the expertise to guide you through the entire buying process. Beginning with selecting the model and site, working with you on plan review, checking the construction as it moves along, and right up to the closing of title, I am there, as YOUR representative, protecting YOUR interests!