Buying a new construction home is one of the most exciting decisions a homeowner can make, but it can also be overwhelming without the right guidance. At First Choice Realty Solutions, we’ve seen many buyers face unexpected challenges. Here’s what you need to know to avoid the top 3 pitfalls:

1. Builder Rate Incentives: Too Good to Be True?

Builders often lure buyers with seemingly amazing mortgage rate incentives if they use the builder’s preferred lender. However, these deals aren’t always what they seem. For instance, one of our clients was offered a 2% mortgage rate reduction. After reviewing the details, we discovered that the lender added the cost of the rate buy-down to the client’s closing costs. Essentially, they were paying for their own incentive!

Tip: Always consult with a real estate expert who can help you understand builder contracts and spot hidden fees. We can guide you in making the right financial decision and determine if an incentive is truly beneficial.

2. The iBuyer Trap: Quick Sale, Major Loss

Builders often partner with national iBuyer programs to ensure a quick sale of your current home, especially if you need the proceeds for your new construction purchase. While this may sound convenient, it’s important to remember that iBuyers often make cash offers significantly lower than market value.

Tip: An experienced real estate agent can help you time your home sale to maximize your profit. We can negotiate a top-dollar sale, allowing you to bring more money to your new home’s closing.

3. Overspending on Home Upgrades

Designing your dream home with custom features is exciting, but it can also be financially risky. Excessive upgrades could lead to appraisal issues, and if your home doesn’t appraise for the contract price, you may need to pay the difference in cash.

Tip: Work with a knowledgeable professional who understands new construction and can guide you in choosing upgrades that make sense. Our team, including experts like Scott Breuer, can help you make smart decisions and ensure a smooth closing.

Why You Need Realtor Representation

Always inform your realtor when visiting new construction model homes. Builders may require registration, and if your realtor isn’t registered, you could end up paying their commission out of pocket. Having your agent involved from the start ensures your interests are protected.

Ready to make your new construction dream a reality? Contact First Choice Realty Solutions today for expert guidance and personalized service. Your Journey to Home Starts Here!

Have more questions or need personalized advice? Reach out to us through our [website] or connect with us on social media. Let First Choice Realty Solutions be your guide in navigating the new construction process!