Updated for 2016!
Purchasing a new build home from a builder can seem like an easy task for a buyer who lives 10 minutes up the street and can monitor the process however if you live out of state or in another country and this a vacation rental purchase, the Kissimmee new build route can be a complicated process if you don’t have someone looking out for you and your home here in the area. I’m going to share with you real experiences that we have had to deal with for our clients during the new build process as well as educate you on how the whole developer/buyer relationship works.
Kissimmee New Build Sales Agents Are Not Working For You!
This is the biggest fact that investors always seem to get confused about. You walk into a new home sales office and are greeted by some friendly faces. You browse the models and then talk with the Kissimmee New Build sales rep for a while about the neighborhood. You establish a rapport with this sales person and you now feel like you know, like and trust him/her. This may very well be the case but it is their job to make you feel that way. This sales rep works for the builder just like a seller’s agent works for the seller of a house.
Here is an example of a situation one of our clients ended up in. While they were here on their buying trip we had plans to meet over at the sales office at one of the local Kissimmee new build communities. They arrived a bit early and the onsite sales agent starting showing them the map and discussing the community. By the time I got there they had pretty much already picked out a lot they wanted with the sales agent. They said they chose this lot because the sales rep explained to them it was the best deal in the community right now and they had a home almost completed and could offer them a tremendous closing cost credit and discount if they purchased this house. The sales reps have a lot of pressure from the builder to sell the inventory homes first. Inventory homes are fantastic IF they’re on the right lot. This particular one was located in a very unfavorable section of the community which, because of this location, would hurt the owner’s ability to generate bookings and get repeat stays. After sharing this new information with my buyers they opted for a better located lot, even though it wouldn’t be ready for a few more months. The information I shared with them was information that the onsite sales agent wasn’t aware of nor cared about. Once a person closes on the house their job is done. But once one of my client’s close on a home, I am usually their first point of contact for everything and it’s essential to me and my business that my clients are happy and successful with their properties. This is just one situation out of many I have run into.
A good Realtor that you choose to represent you in your new home purchase will be more than glad to become your eyes and ears during the construction process. They will drive by your property while under construction at least one per week, take pictures, check on the property and report back to you with information on the progress. Often times the builders sales reps are just too busy selling more homes and peddling paperwork to take this type of time out of their day for you. Without pictures of the progress on your home you really have no way of knowing how far along the home is in completion (you have to rely on what the builder tells you), if everything is being installed correctly, if the upgrades you ordered actually end up in the house and the list can goes on. You don’t want to wait and find all this out when you arrive for closing and it’s too late to fix everything. Worse, you don’t want to find out that your closing is being delayed and then at last minute’s notice be given 3 days to prepare for closing finally after waiting months on the builder. This happened to one of our clients. The builder kept delaying the closing for months, almost three months went by from the contract closing date and the buyers ended up having to start the loan process all over again because everything became outdated (because of the builder’s delay). Because of this they needed an extra 15 days to close (the builder gave them 3 days notice after making them wait almost three months) and when they requested it, the sales rep threatened to hit them with daily penalties of up to $900 PER DAY. That would have amounted to almost $15,000! Luckily they had us and didn’t need to get an attorney because we went to bat for them with the builder and were able to get the penalties dropped. It was a horrible experience for everyone though. This stuff happens all the time with Kissimmee new build communities, this is why you need your own representation.
Your Final Walk Thru Inspection
One of the most important jobs your Realtor can perform for you is the final walk thru. This is when the home is completed and you are required to walk thru and inspect the property, sign off that everything is or isn’t okay and order any last minutes fixes or repairs. If you don’t have anyone you trust to do this for you and you can’t do it your self you may end up in the position of having your home sit past the closing date and incurring additional fees for holding up the closing until you can get down here to inspect it. Realtors are virtually the only professionals that are willing to do this for you without charging you a fee (the builder pays their commission). Home inspectors will charge you upwards of $300 per hour to preform this action. I can’t tell you how many times I have done walk thrus for my clients that lived out of state or country because they couldn’t get a flight out or they just couldn’t make it at that time. Had they not appointed me as their Realtor it would have cost them thousands in the end. Especially because many of the walk-thrus were very extensive and there was a lot that needed to be fixed before closing.
If you are considering a Kissimmee New Build purchase and you want to be represented for free by a Realtor that you should always consult the Realtor of your choice BEFORE you visit the property. Many builders will not compensate your Realtor and allow them to represent you if they are not the first person to escort you or register you for that community. So make sure before you start contacting every builder on the block you speak with a Realtor first!
We hope to earn the opportunity of helping you achieve your investment property goals this year. To set up a free, no obligation investment property consultation with us please use our scheduling tool or contact us directly at 866-422-6191 and if you have enjoyed this article please consider subscribing to our blog and stay updated on future information.