OT: closing on a new home

[dbrown]

We are having a new home built. We found the builder without using a realtor. As we approach the closing, it seems appropriate to have someone to represent us. Can we pay a realtor to go with us to the closing, or hire a real estate attorney or what. We appreciate the Forum knowledge and experience here, and look forward to your suggestions. Thanks.

[p nut]

If you bring on a realtor now, it will cost you. Usually 3% fee. Going without a realtor saved you that much, which should be reflected in the purchase price.

What is it that you're concerned about? Any questions you have, the escrow agent can explain it to you, or even bring it up to your mortgage loan officer.

[Idris Icabod]

We've bought 3 new construction homes. The last 2 we had a realtor for. I'm glad that we had the realtor, she asked some tough questions and righted a few issues by being the tough guy. I think at this point I wouldn't pay someone as my guess is that it would be fairly expensive as the realtor usually has to pay their office a good chunk of their commission and the builder won't pay now that you are signed on.

The one piece of advice our realtor gave us was to get a home inspection regardless of it being new construction. Our inspector found several issues that were not to code or annoyances that may not have shown up during our 2 year warranty but might have been an issue in the long run despite using a reputable builder on a pretty pricey house.

[KarlC]

For a new home all you should really need is an good escrow agent and a GREAT home inspector, pay extra to get the proven best as it will save you in the long run.

[vqdriver]

i'm a bit confused. op says that youre having a builder build you a home, which i i understood to mean that you already own the property = no escrow. so what's closing?

if you meant that you're buying a new home that's currently being built, then you would have been dealing with someone the entire escrow process, who was that? or did the listing agent also act as your (the buyer's) agent?
also, if you do use a realtor, their commission is paid by the seller. unorthodox to go this far without one then bring one in at the very end. that commission would have to be negotiated

[jlwdm]

You can get an attorney or a Realtor to help you, but you should definitely get an excellent home inspector. Lots of things get missed in new construction these days.

You don't have to pay a Realtor the same fee as to handle a transaction from the beginning and recognize that not all Realtors will be willing to do this.

I was an attorney in Washington State and a Realtor in AZ and now TX and the farther west you go the less you usually see attorneys involved, but there will still be some available.

Jeff

[jlwdm]

Originally Posted by vqdriver

...

...
also, if you do use a realtor, their commission is paid by the seller. unorthodox to go this far without one then bring one in at the very end. that commission would have to be negotiated

Here the buyer would be paying the commission which would probably be a fixed amount.

Jeff

[Ralph]

I would probably hire an inspector to keep an eye on it as it's being built. While your builder may be first rate, just knowing that someone is watching what they do can eliminate some short cuts from a sub contractor. Unless you have knowledge of new home construction. Especially if you are giving them draws for work done. An attorney is always a good idea, but it's probably too late for that.

[Ken Robb]

where is the property located?

[p nut]

Originally Posted by vqdriver

i'm a bit confused. op says that youre having a builder build you a home, which i i understood to mean that you already own the property = no escrow. so what's closing?

if you meant that you're buying a new home that's currently being built, then you would have been dealing with someone the entire escrow process, who was that? or did the listing agent also act as your (the buyer's) agent?
also, if you do use a realtor, their commission is paid by the seller. unorthodox to go this far without one then bring one in at the very end. that commission would have to be negotiated

There would still be a closing at the end of construction. Long-term loan to pay off the builder. Or even if you're paying cash, better make sure that title is clear. Lien friendly state like mine, I'd double and triple check that. Make sure you get a good title company who knows what they're doing.

Also, depends on how things were negotiated, but at least around here, it's still a seller's market, so the buyer's half of realtor commission is paid by the buyer, not the seller--usually.

Originally Posted by Ralph

I would probably hire an inspector to keep an eye on it as it's being built. While your builder may be first rate, just knowing that someone is watching what they do can eliminate some short cuts from a sub contractor..

I've never heard of this before. Usually, the home inspectors go through the finished product, not while it's being built. Do they do this in FL? I guess you can always hire some retired GC to go walk the property every once in a while. Remember the bank (or whoever the lender is) has interest in this as well, and they SHOULD have regular inspections done. But there is nothing like looking at the plans, knowing where things go, and inspecting it yourself. It's not too hard...

[dbrown]

Lot's of good information. We are in Indiana. The bew home is being built on the the builder's lot. We put a deposit down, with no other payments, draws, etc. until the closing. We will either pay cash or take out a small (10% or so) mortgage.

I thought about having a home inspection done prior to closing, but didn't know if that was common. It appears to be more common than I would have thought.

We will look for a highly regarded title company and inspector. Where do we find the escrow person?

[pdonk]

I work for a development company that focuses on ground related product. Note that different jurisdictions have different laws and expectations. Our builders would never allow a third party inspector on site during construction.

As a minimum you should have a pre closing inspection that allows you to identify deficiencies. I would take a look at your local homebuilder association's website. They should have a checklist. Google tarion bild and ohba. They all have info.

There should also be a 30 and 90 day inspection as well.

Feel free to pm me.

[jlwdm]

Originally Posted by pdonk

...

Our builders would never allow a third party inspector on site during construction.

...

A red flag.

If you are in a really strong builder's market I guess you can get away with it.

I had out of state clients building a house that was completed earlier this year. I emailed photos to the buyer every 2 weeks and they caught a lot of things that were being done wrong. Not too expensive a house - around $1.4m.

Jeff

[Ken Robb]

Originally Posted by dbrown

We will look for a highly regarded title company and inspector. Where do we find the escrow person?

Who drew up the contract you signed and who is holding your deposit?

[p nut]

Originally Posted by dbrown

Lot's of good information. We are in Indiana. The bew home is being built on the the builder's lot. We put a deposit down, with no other payments, draws, etc. until the closing. We will either pay cash or take out a small (10% or so) mortgage.

I thought about having a home inspection done prior to closing, but didn't know if that was common. It appears to be more common than I would have thought.

We will look for a highly regarded title company and inspector. Where do we find the escrow person?

With a new home, if the builder is reputable, a home inspection isn't necessary. But if you don't know what to look for, it's not a bad idea.

Escrow officer is your title officer. Whoever is handling your title work.