New Home Buying Traps

New home buying is filled with traps and tricks designed to put you at a disadvantage. So take a minute to learn about new home buying traps so you can easily turn the tables on the builder.

Contract negotiation from the buyer’s side should be simple, but it’s not. New home builders play games with lot premiums, custom add-ons, and incentives to completely baffle their prey…YOU!

One of the first tricks they’ll pull is to discourage you from using a real estate agent. They don’t like anyone in your ear advising you.

Don’t fall for it. Get an experienced real estate agent before you ever step foot in the model home!

First new home buying trap avoided…

Now the next trap sadly is even though you now have an agent, he may simply do the new home builders bidding anyway!

Ouch!

New home buying buyers need to understand their own agent can become a “trap” in itself. By law in many states, the MLS agreement signed by your agent’s broker bind your agent to act in the seller’s best interest too! In addition, no agent wants it to get around to all the new home builders he’s a thorn in their side.

How do buyer agents explain this obvious conflict of interest?

They don’t.

The answer, given that new home buying agents MAY be “working” for the builder is:

• Tell him or her as little as possible.
• Don’t mention anything about your finances other than you are approved for the price of homes you’re writing offers on.
• Refer him to your mortgage professional for a “pre-approval letter”. Your mortgage pro (without divulging anything specific) will set his mind at ease on the financing.

Second new home buying trap avoided…

Another big blunder when new home buying is using the builder’s mortgage company.

Never and I repeat…NEVER use the new home builder’s mortgage provider!

Just like you’re never to take the new car dealer financing. Same thing here. Sure they make it real easy to just go back and “get approved right now”. You don’t fall for it when shopping for new cars. So don’t fall for it when new home buying either.

New home builder mortgage rates are on average 1 full percentage point higher than what you can find on you own in the marketplace with proper shopping tactics. Not sidestepping this new home buying trap could costs you $10,000s of hard earned cash.

To learn how to properly locate the best mortgage provider who’ll help you through buying your new home, consult The Mortgage Advantage.

Use our system, and the third new home buying trap…a very costly one…is avoided too!

Good Luck!

Author: Rob K. Blake
Published January 4, 2008