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When purchasing a lot/home package in a production subdivision it is important to have your own real estate representation.  Prior to going into a model home, find a realtor you feel comfortable with for Buyer Broker representation.  Make sure your realtor accompanies you on your first visit to the model homes, and before signing in with the Builder’s representative.  Oftentimes Buyers don’t realize that

1. They can, and should have their own Realtor.  They “assume” that the Realtor who greets them at the entrance will be representing them in the transaction.  THAT IS NOT THE CASE!  The sales representative at the model home represents the builder only.
2. They will not get any price break for using the builder’s representative. When buying a “production” home in a subdivision, all pricing is the same.  There is no haggling, or possibility of getting the builder to “throw a few things in”.  It makes sense when you think about it:  generally the home builder has several different plans to choose from.  If one of your neighbors has the same floor plan, and their home has been recently built, or is being built at the same time as yours, neighbors talk!  The last thing a builder wants to deal with is a mad customer because their neighbor got a better deal for the same house.
3. The builder has a process when building a home. Most homeowners simply follow their schedule and process without question.  The homeowner wants to keep a good relationship with the builder throughout the process and having your own realtor to ask the “hard questions”, or suggest and arrange inspections with the builder, is beneficial to the Buyer.

1. Remember your budget.  Overspending on a home is a good way to regret your buying decision.  Lay out a budget you are comfortable with (even if your lender tells you that you can qualify for a higher mortgage than you feel comfortable with), and look at homes within that price range.  In the current market, homes typically sell within 1-3% of asking price.  It is generally not worthwhile to look at homes priced at $550,000 when you cannot, or don’t feel comfortable, paying over $500,000.
2. Know your timeline. In the current market (with low inventory) it may take 2-3 months to find a home you are happy with.  The average escrow takes 30 days, whether you are paying cash or applying for a mortgage.
3. Opt for quality over quantity when house hunting. The more options we have, the harder it is to make a decision, and the more confusing the search options become. It is harder to compare prices v. amenities, easier to nitpick all the options and harder to be fully satisfied with any of them.