PROTECT YOURSELF! PROTECT YOURSELF! I can’t say that enough. The home builder, under that big smile and fantastic customer service, has the deck stacked against you. They are in control of the process and this can cost you big money unless you know your rights.
Did you know that you’ll have to put down a big, non-refundable, deposit when you decide on a lot? They will tell you that the money is refundable if you cannot qualify for a loan but don’t let this comfort you. The odds of this happening are very, very low. The home builders want your money whether they build you a house or not.
According to their own SEC filings from 2006 to 2011, Toll Brothers retained $123 million in forfeited deposits from 3,300 prospective homebuyers. WOW! They actually made more money from forfeited deposits than from building homes. WOW! PROTECT YOURSELF!
Home builders also make a lot of money on overpriced upgrades. The home builders know that money will be tight once you get into the home so naturally you’ll want to get as many upgrades as you can. Knowing that you can roll the cost of these upgrades into the price of the loan just makes sense but beware of the consequences. Most home builders, depending on whether you are using their financing or not, will want up to 75% of the cost of these upgrades upfront. The home builder realizes that your choices may not be the choices that others would make. They want to make sure that they get the money from you in case you back out of the deal and they have to sell the home to someone else with these upgrades.
These are just some of the issues that you will run into at the onset when purchasing a new home. Once you actually get into the home and do the walk through, there are another set of issues that you need to be aware of. PROTECT YOURSELF!
When you visit a home builder they will want to get your name and information about you. Don’t give them any information unless you have a Realtor with you. Once you sign up, many home builders will not let a Realtor represent you no matter what you do. The Realtor will cost you nothing but can save you money and lots and lots of headaches.
This is why you need to have a qualified Realtor on your side that can lead you through the process and look out for your interests. Just knowing that information about Toll Brothers which equates to other builders as well makes it a necessity that you be represented by a licensed Realtor.
I have been through the process. I can advise you of the pitfalls along the way and what you can do to avoid them. Call me today at 925-336-4938 and I’ll make the experience a satisfying and prosperous one for you. Don’t be one of the statistics.
Have a fantastic day!