Are you looking for a new home? If so, then at some point you will be making an offer, if not multiple offers. To get a good deal, a home buyer should identify more than one property that is suitable for purchase. The purpose of this is to leverage your negotiations with a home builder (read more); you do not want to be tied to one particular new home should the negotiations break down.

While shopping around, some onsite agents, also know as the builders’ sales agents, are very quick to reference other home buyers who have interest in the new home that you like, so be wary of this; it could be the truth in your situation, or it could be a tactic used to create urgency for making an offer. Notwithstanding, be alert and take it with a grain of salt.

Once you begin to focus on making an offer on a particular new home, you need to arm yourself with as much credible information as possible. If you have engaged an experienced buyer agent with an emphasis on new construction, then this person, if he/she is a member of the local Listing Service, has the ability to research exclusive sales data, if applicable, to see how, and if, the home builder is negotiating with other home buyers. If you don’t have such a professional, you will be at a disadvantage in this area; however, at the very minimum, you should consider hiring a buyer’s real estate attorney to assist with drafting your offer. Unless the attorney is a real estate broker too, then this person won’t have access to the same detailed data; but, he should have experience making offers on new homes.

As the negotiations commence, take your time. I cannot stress this enough. I have negotiated, as a buyer agent on behalf of a buyer-client, for as long a month or so. While this may be the extreme case, it still alludes to the importance of using time as your leverage. If the time limit for your offer expires, it isn’t the end of matters, unless you are in a bidding war. After an expiration, you may consider making an offer on the other new home that you have identified.

Whatever path your negotiations take, be patient during the process to get a feel for the home builder’s position; the first counter-offer may, or may not, be the best deal. Patience is indeed a virtue.

Stephen Graham - Realty Professionals, Inc (770) 491.1494 - Buyer Agent Testimonials

Disclaimer: This is informational new homes reading, not legal advice; it is intended to be the author's opinion only. This information may or may not apply to your situation; therefore, you may not print out, use, copy or redistribute this real estate content without prior expressed consent from the author. All content is for your personal viewing only. All Rights Reserved

As a prudent home buyer for new homes in Georgia (GA), you are probably searching for home builders that offer the best incentives, discounts, promotions and a buyer bonus too; these incentives often include paying the buyer’s closing costs, free options/upgrades and price discounts -- just to name a few. However, don’t stop there. One should seek a lower price and better terms through good negotiations. By obtaining the services of an experienced buyer’s broker (agent), this professional has been involved in many new home transactions that will become your asset. Generally, your buyer’s agent is at no out-of-pocket cost to the buyer, inasmuch as he/she is compensated through the predetermined sales commission that has been allocated by the home builder once a particular new home is sold. This sales commission (marketing fee) is set aside for the licensed brokers (agents) who are involved in the transaction; one represents the builder and one represents the buyer. If the home buyer elects to deal directly with the onsite agent (builder’s agent), then this entire sales commission is simply retained by the onsite agent or home builder. If a home buyer wishes to reduce this commission, one approach is to negotiate directly with his/her buyer’s agent for a home buyer’s rebate.

It’s important to note that a home buyer is really paying for everything through the sales price, whether it be seller paid closing costs, incentives, promotions, commissions and settlement fees. While it may seem on paper that the seller is paying for these things, it’s all accounted for through the sales price, regardless of what has been negotiated by the home buyer; when it is all said and done, the buyer pays for everything through the sales price. The home builder or seller will agree to sell the house at a price point where all these items are accounted for.

With most 100% loans being a thing of the past, FHA with Down Payment Assistance (DPA) provides some relief for those who are strapped for cash. If negotiated properly by the buyer's broker [agent], home buyers can put practically nothing, if anything at all, into the transaction.

Some contend that home buyers need some "skin" in the transaction to make them think twice before walking away from their commitments if times get tough; but really, will a 3% stake prevent this on any grand scale? Secondly, don’t these buyers have skin in the game when making mortgage payments?

Lastly, isn’t the purpose of MI to offset default losses? What am I missing? Perhaps, FHA should consider 100% loans if they are concerned about artificial sales prices to account for these down payments.

Are you looking for new townhomes in the Atlanta Georgia area? This can be an alternative to single family residences which require more maintenance by the home owner; not only that, but prices are generally lower too. However, you should consider the extra expense of HOA (Home Owner’s Association) fees. These fees can vary depending upon the services provided by the HOA. As a general rule of thumb, the fees will be lower if more responsibilities are placed on the home owners for exterior maintenance of their respective units. One should determine if the HOA is responsible for ensuring that all units are bonded against termites. Since the new townhomes are attached, negligence from your neighbor could result in damage to your unit.

New townhomes will come with features like low-e windows. Among other things, higher standards are imposed by some county codes; this results in higher firewall ratings between the units; it seems logical that this would dampen sound better as well. If you are having the unit built, it would be advisable to have a pre-drywall inspection by your own independent home inspector; this is the perfect time to examine the structure before it is covered up with sheetrock. Any imperfections, code violations or poor workmanship will be observed by a trained eye. Sadly, the new construction industry leaves much to be desire because of its oversight by their contractors. Inspecting new townhomes is a way to hold the builder accountable. If you are beyond that point, then have a final home inspection at the very minimum. It isn’t worth trying to save a few hundred dollars by neglecting this invaluable service.