- Expecting the Builder to negotiate on price. Builders generally do not have to negotiate on price in this market. The reason they are unwilling to negotiate right now on price is because we are in a strong sellers market, with low inventory and high demand. There is a second reason for this as well. They will build several, sometimes dozens of homes with the same floorplan this year. If they sell one for a discount, they will have to sell the rest for the same discount. Which could amount to tens of thousands of dollars in lost revenue for the builder.
- Not negotiating for upgrades. While right now it is very hard to get builders to come down on price, it is still very possible for you to get certain allowances for items such as landscaping, cabinet hardware, fixtures, appliances (with the builder discount) and other upgrades.
- Not attending the walk through. If you don’t attend the walkthrough you won’t be able to point out what they have missed or what might not have been done correctly. Your Des Moines Area Realtor should be attending the new construction walkthrough with you as well. You would be surprised how many people pay for an inspector and then do not show up for the inspection. Even worse is the number of West Des Moines realtors who I’ve seen not show up to the inspection. If your realtor doesn’t show up – they are not doing their job.
- Not using a local Realtor. If you are buying in Johnston, you should use a Realtor who is familiar with Johnston. Local knowledge of the market is critical to the home buying process. Too often we will see unrepresented buyers who think they can save money on a home by not using a realtor. What they don’t realize is that the builder’s home is already listed by a realtor. When they make an offer, the 3% they think they are saving is actually going into the listing agents pocket. This is great for the listing agent, but it will not save you any money and will likely cost you money because you won’t have anyone looking out for your best interests for the sale.
- Not asking for a post sale walkthrough. Homes sold in Des Moines, Urbandale, Clive, Waukee and Grimes all should come with a builder warranty. The term of this warranty is one year. Too often buyers and their realtors forget that important piece of the puzzle. Often things are overlooked during the purchasing process. Sometimes it takes a month of living in a home to realize there is a problem. Once the problem is identified, the builders warranty will kick it. If you don’t contact the builder within the first year to fix the problem, then it goes from the builder’s problem to your problem. You don’t want things to be your problem. About 11 months after the purchase you should be scheduling a walkthrough with the builder to repair chips in the paint, scratched trim and anything else that might have possibly been missed. I’ve even heard of entire driveways that have cracked being replaced. Much better to see it replaced than to see that expense be differed on to the home buyer.
Hopefully this list has been useful and if you have any questions regarding new construction homes in the Des Moines market, don’t hesitate to call me at 515-577-8241 and let me be your realtor for your new construction purchase.