Buying a model home is like you are going out to purchase a car which was used only for test drives. It is known to everybody that the dealer will always give you some discounts on a car with low miles.
In the same way, builders can also offer some discounts on models homes, but the reasons may be different. It is very likely that the model homes have not been ever used as living quarters.
Below you will find the tips to get the best deal for the model houses from the builder:
1# Hire Your Agent Before Signing The Contract For The Model Homes
When you are going to visit the sale's office, you should always have the buyer's agent with you. Some of the builders will not allow you to bring the agent with you if you arrive unescorted.
The main reason can be that the builder's agent is paid for the representation of the builder.
It does not matter what they are telling you. Most of them will always use many tactics to persuade to sign the contract. Your agent will represent you; he will act as your fiduciary and will explain to you with all the pros and cons of the home.
2# Ask Builder To See All Model Homes
Model homes will always be having the free upgrades, designer paints, and designer window coverings. Most of the builders sell their homes which are based on the design and layout of the model homes.
So every builder wants to create their model home appropriately, beautifully and at the same time spare some expenses in decorating the model homes.
Builders can also sell those upgrades separately to the buyer who has purchased the home, so it is always advisable to pick the home with the best upgrades and home layout.
3# Enquire About The Occupancy Of The Model Home
You should always find out whether the model home has been ever occupied or not, and if yes for home long. It may always be possible that the kitchen appliances were used, but the bath fixtures may not be in their primitive conditions.
If you can gather this information, you can always use these to convince the builder that the home can't be considered as the new anymore, and therefore you will be in the strong position to negotiate the terms.
4# Get Legal Advice Before Signing The Purchase Contract
It is always advisable to hire the right real estate lawyer so that he can review the contract before you do your signatures.
Standards purchase contract are designed in the way so that everyone will be kept out of the court, but they may contain the language which may not be protecting the buyer.
It has been observed that most of the contracts are protecting the consumer and can run for more than a hundred pages.
5# Compare The Sales In Your Subdivision
You may always ask your real estate agent to get the list of the comparable list from MLS, in case the builder is not having registration there. You can also inquire further and obtain the hard data from a title company, but that will not give the sufficient information about the which homes got sold with what upgrades.
When you are looking at the comparable sales, always check the number of deeds mailed to the property address and how many got mailed elsewhere, which will indicate that the investors might own the homes.
In case there is sudden fall in the market, the investors were the first to bail, and in addition to that, you are buying the house in the new subdivision which should be surrounded by the other buyers and not with the tenants.
6# Consider Using Your Lender
To get informed with the continuous personal progress builders usually prefer their lenders, as it is one-stop shopping for the builders. But there is always a chance that the builder's lender is not offering you the best loan and interest rates.
You should always ask your real estate agent to provide you with referrals of the lenders; there is always a possibility that the builder may also have the lending company.
7# Opt For Home Inspection
You should always get a home inspector for yourself; it does not mean you allow your friends or families to do the inspection, it should be the real home inspector.
The home inspector should ask the questions about the home as there can be many defects. There can be the problem with the HVAC system or some faults in the plumbing.
There is always a possibility that the construction workers can make, and you should get the home inspected thoroughly.
8# Builder's Reputation Should Be Found Out
If any of the buyers are having the bad experience with the builder, you will automatically go to know it as the words spread rapidly throughout the community.
But maybe you are not aware whether the bad reputation is just an isolated incident, or builder's cooperation repeatedly brings terrible publicity for itself as they don't check public records and lawsuits.
9# Always try To Negotiate The Home Price For Model Home Furnishing
It has been observed with the home communities, that they leave the home furnishing in the model home. It means all the artwork, and other decorations stay with the home.
When you are singing the contract had these items in the home, you can opt for these articles to remain with the home and without any warranty.
There is always a possibility that the home counselor or the builder's agent will divert you and tell that the price is firm.
Most of the times the prices are not that firm, your offer should be fair, and then you can ask for the discount on it. Builders will negotiate it.
10# Try To Buy The Last Model Home
It is sometimes observed that the close-out sales often carry the best prices. In addition to that, you don't have to worry the others home will be built, as they are already being constructed.
You can assure yourself that you will get the excellent offer while you sell that home, as you have bought the last house and the market will not affect you.