Guess who hijacked this blog this morning?
Hi! This is Gretchen Jolly, a long-time Realtor and Steve’s better half.
Since Steve is in a required training class, I thought I would hijack his blog and talk to you this morning about new construction.
I’ve sold quite a bit of new construction lately and it is so different than buying a traditional home, especially in these market conditions.
There are a few things that I always share with my clients that are interested in new construction and I thought you would find them useful too.
First, many tract builders will want you to use their own contracts. While we prefer to use the state approved contract, this is not always an option with a large builder. These contracts were written by their lawyers and tend to benefit the builder.
For example, they might not have a closing date or allow for price increases along the way if their costs rise.
It’s of the utmost importance that you and your agent have a complete understanding of the builder contract before you sign it.
Second, there is a shortage of qualified labor in Middle Tennessee which results in significant closing delays.
Sub-contractors are getting stolen from work sites when they are offered more money by other builders. It’s a problem that we are going to have to deal with for the next few years.
Due to these delays, you should plan on temporary housing.
Last, if you are thinking about working with a custom builder, do your homework and ask these questions.
Does the price they are quoting include builder/contractor fees?
Are the builder fees a fixed cost or a percentage of the total?
Will they provide a detailed breakdown of costs by line item?
Can you write in a per diem for late fees when the contractor does not hit their contract closing date?
At any rate…
These are just a few of the important things that need to be considered.
What questions do you have about buying new construction? Call or text me, Gretchen, at 615-519-0986.