Will this be the year you buy a brand-new home? Don’t be discouraged by news reports claiming that “U.S. home building fell,” or “housing starts dropped.”
The scary-sounding numbers are due to a drop in multi-family home building, NOT single-family.
In fact, the single-family home construction market across the country and on the island of Guam is set to be just fine, with a surge in new building permits late this summer.
Moving into a newly-built home is a lot like the first time you sit behind the wheel of a new car, but on steroids. No stinky smells from whatever it was the previous occupant was cooking, no greasy range hood and walls, no dinged-up baseboards, no mold – everything is new and pristine.
While these aspects may make you starry-eyed, there’s reality to contend with as well. Today we share with you some things to watch for when taking on the purchase of a brand-new home.
The Seller’s real estate agent
When you drive up to a home being built, you’ll probably only see the workers. You’ll ask them who owns the house and if it’s for sale? Hopefully, the workers can understand and speak good English and give you a name and number.
Once you get hold of the builder or seller, be careful if they suggest you eliminate having to be represented by a real estate agent. Or just using their own real estate agent.
Remember, you want someone advocating YOU and looking out for your own interests. If you’re not familiar with with purchase contracts and buying on Guam, how do you know that the Seller or his/her agent is thinking of whats best for you.
Think about this: if it were legal, would you use your about-to-be former spouse’s attorney in your divorce proceedings? Why do you suppose that isn’t common practice?
Here’s why: it is almost impossible for the Seller or the Seller’s agent to protect both the Seller’s interest and yours in the same transaction.
Since the Seller pays for the Buyers’ real estate agent at closing, it only makes sense that you have your own agent who will look out for nobody else but you.
Avoid this problem by letting the Seller and the Seller’s agent know, upfront, that you are working with a Living On Guam Realty agent.
The Seller’s lender
Hey, this is a one-stop shop, right? Of course!
Home sellers understand that they need to hook the buyer when he or she is most excited so they offer all the services one might need to get the process started. This includes an “in-house” or “preferred” lender.
Now, unlike using the seller’s agent, there’s nothing wrong with using his or her lender, as long as you’ve shopped around and know that you’re getting a good deal.
Never feel that you have to use this lender, however, because you don’t.
The Seller or Builder
Check out the Seller and the builder’s reputation if you aren’t familiar with him or her. Start with the Better Business Bureau and then scour the island’s public records for lawsuits against the builder.
Buying a newly constructed home is a lot more involved than buying an existing home, but the end result is well-worth the steps it takes to get there.
If you want more information and guidance in buying newly constructed homes on the island, call Living On Guam Realty at 1-671-989-1520 or email at [email protected]