Find a well established builder, if you are new home buyer.

How to find a well established builder?

Research the Builders who build there

Tips to find a well-established builder:

  • Find the local Builders Association for a list of Builders that are registered members. You can access this through organizations like the Canadian Home Builders Association. It is important to note that there may be other Builders out there as well that just have not chosen to be members of a local builders association. They may well be great, but generally, those who pay a fee to be a member have not only gone through a due diligence process to be a member but also take the business seriously and are well established.
  • If you do find a Builder who is NOT on the local Builder association (and perhaps even if they are) you want to check to see if they have a valid business license and if they have been recognized by the Better Business Beaureu or other local organizations.
  • Your local city hall may also have a list of the number of permits that Builder has pulled for construction in the past year, giving you an idea of the strength of the Builder and may even be able to share their knowledge and experience with that Builder. Both small and large Builders have been known to go out of business and it’s important to check this out carefully, especially as later you will be giving them deposits. (example: REID Built – Bankruptcy)
  • Check local rating sites such as Avid Ratings and HomeStars who utilize consumer ratings of the Builders. It is also best to look at more than one as it is possible a rating site is paid to ensure that Builder looks better than they really are so verifying various resources will give you the clearest picture.
  • The Developer will typically choose those Builders they are working within that Development and there is a myriad of reasons they have made that decision. The developer is selling the lots to the Builder, but remember they need to assist them in selling as well as the Builder needs to pay them for the land and that doesn’t always get paid at the beginning. Often the completion of that payment comes out of your purchase when you move in so you are helping to pay for the development of that community.
  • Finally, talk to friends and family or utilize your Facebook and LinkedIn accounts to reach out to find out who has built with particular builders and the quality of experience they had.

New Home or Used Home – is there really a question here?

 

welcome to new home

New Home Buyers are not interested in used homes……they are looking for a brand New Home for so many reasons.

The most important thing to recognize is the desire to buy a Brand-new home is in fact growing amongst consumers with more than 53% indicating their next home will be a new one. More millennials are looking to find the newest in innovation and best location to settle into, one that matches the type of lifestyle they want to be living.  Baby Boomers are also leaning more toward a new home as well as they are tired of the many years of maintaining their used home.  They have spent countless hours and thousands of dollars keeping their home as a solid investment so that they can now sell and move into something new, maintenance free and offers the many luxuries an early retirement lifestyle deserves.

New Home Buyers want new items, the newest in appliances, smart homes, energy efficiency, new home warranty, maintenance free building and more. They are not interested, and simply don’t have the time or willingness inherit someone else’s worn carpeting, used  kitchen appliances or look at some other family’s initials scrawled into cement they didn’t put there. They want their Houzz and Pinterest Dream of a new home, one that is clean, well designed, effective, innovative with a great location to amazing amenities.

Do You have to Use a Real Estate Agent? Nope…

Unfortunately, most buyers can’t easily look up only new homes on REALTOR.ca (MLS). The average consumer CAN NOT look up the house by age of home, your stuck looking through all the used homes to find them. This is because the REALTOR.ca system is specifically designed to ensure you only get limited information encouraging you to call a real estate agent.

Thankfully other online services are appearing to help many New Home Buyers in becoming extremely well versed in new homes, the projects, the builder and more.  Many start their online research as much as 5 months before they ever talk to a Builder or an agent. They use so many online services including the Canadian Home Builders Association, the Builders own website, or sites that bring all the new homes into one place like NewHomeListingService.com.

Buy Direct from a Builder or Use an Agent?

By the time many New Home Buyers decide they are ready to buy their brand-new home, they often already know more than the local real estate agent.  So, one of the first questions you may have is should you even use a Real Estate Agent?  “What value does the Real Estate agent bring and I heard the Builder will keep the price higher to pay their commission?”   Yet you have also heard from your friends and others the horror stories in buying a new home direct from a Builder and not getting what was promised and the many headaches that follow.

Take a look at the next series of Blog posts for the Steps of what to do next!