These are a few common facts about building a new home that most new home buyers never know, especially those working without a new home specialist. We're sharing some of the secrets here, but get even more insights when you call us and get referred for buyer representation.

• Builder options can have as much as a 40% margin, so it’s easier to negotiate options than asking for money off the base price of a house. Lowering the base price impacts the value of the other homes the builder is trying to sell so there is little incentive to lower sales price.
• Some version of the model home the builder erects sells roughly 40% of the time compared to the other models the builder may offer in the community, simply because people like buying what they can physically see and walk-through.
• Some builders charge and administration fee on top of earnest money, which is simply a fee for doing all the paperwork.
• Builders used to accept buyer contracts with contingencies (i.e. the buyer could back out if their current house didn’t sell). They would sometimes be allowed to accept up to 4 buyers with contingencies. In a very hot market where sales are good, builders have very little incentive to accept a buyer contract with a contingency.
• Most builders have well over a year to complete your home and not be in default of the contract.
• At closing you should always check that the builder paid their portion of the annual taxes if you only took possession of the home for part of the year.
• If a hurricane, tornado, or other natural disaster destroys your home under construction, the builder is typically not obligated to complete the home. They may decide to just return your money. There are a host of other reasons why a builder may decide to back out of the contract.
• Once a home is completely "sheetrocked," the home will typically close in 60-75 days.