Buying a house is exciting! It can also be complicated and stressful. You may think that purchasing a new-build is a more straightforward process. The builder is like a one-stop-shop. You don't need to hire a realtor since the builder has sales reps. You don't even need to find a lender since the builder has one. Not only that, you may save thousands of dollars just by using the builders' representatives, right? Not so fast! There are some advantages to buying a new house. But buyers still need their own real estate professionals to represent them.
Most builders have a "preferred lender" and will offer buyers an incentive to use this lender. You have probably heard the phrase "if it sounds too good to be true, it probably is." Do your due diligence as a consumer and don't be dazzled by extravagant offers such as "$4,000 in upgrades" or "discount in closing costs." $4,000 is a lot of money! Who would leave that kind of money on the table? The answer is… nobody would, including the builder or their lender. If a builder offers a significant incentive to use their lender, it's likely that they will make up the difference with hidden fees or by building it into the cost of materials used in construction. Somewhere along the way, they will have YOU pay the amount they offered to you in incentives. Building a house is a long process. The details are tedious. I recommend that even when buying a brand new home, buyers should have a separate real estate agent and lender to represent YOU, the buyer, and not the seller/builder.