Saturday, June 30, 2007

7 Ways To Avoid New Construction Pains

New construction purchases in Liberty have a different set of playing rules than that of resale. Here is what buyers can expect will happen and how to better prepare themselves for any potential pitfalls when buying a new construction home in Liberty, Missouri.

1. Use an agent. I know that sounds self-serving but here is the reality, those friendly people at the sales center are there to do one thing, and one thing only, make the developer money. They are there to protect his interests, not yours. Not to mention, most builder contracts are structured for the builder, not mutually agreeable parties. I have seen some that make War and Peace look like an easy read!

2. If you are wise enough to protect your interests and use an agent, don't go to any open houses or sales centers without them. As tempting as that might be, you jeopardize their commission and therefore will leave yourself without representation. The developers are sneaky that way, they know curiosity gets the cat and claiming you as "theirs" is just what they want. The more ignorant you are to the process and your rights, the easier it is for them.

3. Prepare for homelessness. What I mean by that is, depending on how far out the project is, even if the builder says with a straight face that they can deliver within 60 days of signing the contract, don't bet the farm on it. In fact, I tell all my clients to prepare for the worst case scenario. Have a plan B for your things and for where you can live should your new home not be finished on time.

4. Once the contract is accepted, pick out your finishes as soon as possible, this will help expedite delivery. Make sure you note that any items that are above standards, you will be required to pay for at the time of ordering, so choose wisely.

5. Other costs associated with a new construction purchase is the monthly association dues. One of the reasons they are estimated at seemingly low amounts is that the developer has not set the true yearly costs involved with maintaining the community and it's amenities. Typically the developer will bear most of this cost up front as a part of the cost for developing the land. After roughly 75% of the lots are sold, the homes association will then bare the cost and may need to substancially increase the yearly, or monthly, homes association fees.

6. A way to save money is on upgrades. Have the builder do what would be absolutely a nightmare to do yourself such as hardwood floors, but opt to do other upgrades afterward, such as window treatments, electric garage door openers, custom landscaping and installing a sprinkler system. You will be surprised how much you can save when you cut out the middle man.

7. Timing is everything. One of the best ways to save big bucks is when you buy. First phase is the cheapest of pricing, but some buyers can have a difficult time visualizing their new home when its just drawings on paper. Second phase buyers are the ones that experience the biggest hits, pricing goes up, home builders are less negotiable, and any upgrades will cost you. Third phase buyers or close-out specials are where buyers can get some of the best deals. The properties are already built, so choosing finishes is usually out of the question, but what would be an upgrade package can often become standards, such as stainless steel appliances and granite countertops. Last ones in can spend thousands less than the the earlier counterparts.


All in all, buying new is loads of fun, but can also be a painful learning experience. Don't be lured by the flashy signs and grand opening parties, protect your interests from the beginning is the best bet to buying quality new construction at the best price.

For more information on New Construction in the Liberty Missouri area or to discuss your specific needs, call Ron Henderson at (816) 651-9001 or visit his website at http://www.clayandplatte.com/ Ron Henderson has a CSP designation (Certified New Home Sales Professional) from the National Association of Home Builders. http://www.nahb.org/

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