Real Estate Investment 101: Getting Started

2 Recommendations For When You Build Your Next Home

Buying a home is an important decision, as it is one of the largest purchases you may make in your life. Building a home provides you the opportunity to get a home that has the amenities and features you want, but there are some important considerations to remember. Here are two recommendations to help you during the home-building process.

1. Hire a Real Estate Agent

Although you are building a home through a home building company, it is still important to make sure you understand all the contracts you sign in the process and agree to the best options for your interest as a home buyer. A real estate agent will ensure this for you.

The home builder will have their own real estate sales agent that represents them, so you can have the same, as your realtor has a fiduciary duty to protect your interests in the process. For example, if you are putting money down on your home to be built and signing the contract, it is a good idea to ensure if the financing falls through you can get back your deposit from the home builder. Your real estate agent will be there to look out for your best interest and make sure you are protected, and the process goes according to plan.

And if you choose to buy a home builder's model home, your real estate agent can help you negotiate on the purchase price to get the best deal on the home. They will also make sure any problems and necessary repairs in the home are corrected before you close on and move into the home. Just because the home has been recently built does not mean it won't have simple problems.

2. Hire a Soil Engineer

In addition to making sure the sales contract and negotiations to buy the home are aimed at your best interest, it is important to make sure the soil on the land you are going to build on is stable and will not pose any future problems to your home. Hiring a soil engineer will find out if the soil on the site poses any problems for building a home.

For example, expandable soils are a big problem in many parts of the United States and can cause damage to a home's foundation and basement structure. When expandable soils become wet, they greatly swell and adversely when they dry out they shrink. Both of these situations will put pressure on the foundation of your home and can cause thousands of dollars in damage.

Make sure you get the soil test results back from the engineer before you sign any contracts to buy the home, and make sure your purchase agreement has a clause for you to back out of the deal if the tests come back showing potential problems with the soil. For more information on how to prepare to build a home, contact your local home builders.