Relocate to Wisconsin : The Lure of Shiny New Construction...'Careful what you Catch !

The Lure of Shiny New Construction...'Careful what you Catch !

     A walk thru a model with gleaming hardwood floors, shiny new appliances, mega kitchen islands, dramatic chandeliers, media rooms and kitchens on the lower level, a deck here, a patio there...beautiful blooming landscaping ...picture perfect and ready to call home....maybe.

   New construction   If you are looking at or showing new construction as an agent you need to have a thorough understanding of what is included and what is not...or may be an upgrae and is not included is the "base price" listed...the lot may not be either !

      New Constructon is a  HUGE BUYER BEWARE...if this is Buyer Bewaresomething you are considering as a will need the expert guidance of a Buyer's agent who knows and understands, and has had successful experience with new construction. This is an area of real estate for an agent that if you don't know what you don't need to learn or refer the Buyer to someone who does know or you could lead a buyer to some new lawnvery expensive mistakes. You may assume that.... the hardscaping...that is sidewalk, driveway,  stamped concrete patio are included...the lawn, the landscaping...that sprinkler system and the lamp post ...the "exterior frosting" are may well be very, very wrong. You may learn that not only are none of THOSE things included...the lot will not have a fiinish grade and there will be the added expense of adding what could be tons of top soil, seeding or soddng the lawn, landscaping, masontry work NOT included in what is shown as the "base price" of the home.. and adds considerably to the cost of the house. And...did you know that the subdivision you have chosen requires that the lawn and hardscaping be done within X period of time from when you take occupancy ?    You will want to research the restrictions for a timetable that is a requirement.

       Moving to the interior MAY be that all the light fixtures, plumbing fixtures and floorichandelierng have been upgraded and the allowance that is included in the price would not begin to cover the upgrades.  That walk in shower...the shiny chandelier that will "light up your life" are available...but not included n the base price.  

      Does the house come with an "appliance package" ?  Maybe and maybe not...not likely to be the Viking cooktop and Sub Zero fridge that you see in the model. What IS that package...what is the brand, the features of the appliances you will use every day...good to know before you dccide new construction is what you want to choose for your next home.

   Soooo many questions...that as a first time buyer of new construction...or an inexperienced don't know what you don't know...and assumptions are sooo easy to make when the excitement of new construction is clouding the logic of your budget.

     Our advice is ALWAYS hire a Buyer's agent who is experienced in new costs no more....and can save you a Bundle !  In southeastern Wisconsin, you may call Sally K. & David L. Hanson, broker associates with Keller Williams...and know you can have confidence in their successful experience to guide you thru the process.



Sally K. & David L. Hanson, ABR, CDPE, CSS, e-Pro,ILHM, REDS

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Comment balloon 42 commentsSally K. & David L. Hanson • May 06 2018 11:54AM


Good morning, Sally K. & David L. Hanson every buyer who is wandering through new homes in search of the right one would be wise to hire a well-versed buyer's agent to guide them.... you and David are ideal buyer agents for new home buyers.... David has a vast knowledge of the product.... and you're the protector, for sure....

Posted by Barbara Todaro, "Franklin MA Homes" (RE/MAX Executive Realty ) 20 days ago

Good morning again Sally and David. Terrific post. Most models feature every upgrade and these could cost easily 1/3 of the homes basic price. The seeding thing is a tough one too.

Posted by Sheila Anderson, The Real Estate Whisperer Who Listens 732-715-1133 (Referral Group Incorporated) 20 days ago

Most buyers look for the awe and forget about the need until it is to late

Posted by William Feela, Realtor, Whispering Pines Realty 651-674-5999 No. (WHISPERING PINES REALTY) 20 days ago

Seeing all of the amenities that a new build home can have usually costs buyers much more money than they were planning to spend.

Posted by Brian England, MBA, GRI, REALTOR® Real Estate in East Valley AZ (Arizona Focus Realty) 20 days ago

Good morning, Sally and David- - another Wow! post filled with good advice. 

Posted by Michael Jacobs, Los Angeles Pasadena Area Real Estate 818.516.4393 (Coldwell Banker Residential Brokerage) 20 days ago

Happy Sunday Sally and David,  I even suggest to my new home buyers to have a inspection done.  I also explain what they will still have to pay for likte fences, that back lawn.


Posted by Will Hamm, "Where There's a Will, There's a Way!" (Hamm Homes) 20 days ago

Hi Sally and David- Larry was a new home builder but his models always showed what they would actually get if they bought their home. Unfortunately I saw other builders who would leave off their doors, or have upgrades that were unclear to the buyer. 

Posted by Kathy Streib, Home Stager - Palm Beach County,FL -561-914-6224 (Room Service Home Staging) 20 days ago

HI Sally K. & David L. Hanson - buyers should always have a buyer agent when purchasing new construction. Great info.

Posted by Sheri Sperry - MCNE®, (928) 274-7355 ~ YOUR Solutions REALTOR® (Coldwell Banker Residential Brokerage) 20 days ago

Sally and David I agree you need expert representation from Realtors like the two of you when dealing with a New Construction purchase.

Posted by George Souto, Your Connecticut Mortgage Expert (George Souto NMLS #65149 FHA, CHFA, VA Mortgages) 19 days ago

Yes, buying new construction is a different animal from resale and needs to be carefully handled to make sure nothing falls through the cracks. Those buyers will be well served by working with experts such as you.

Posted by Jane Peters, Connecting you to the L.A. real estate market (Home Jane Realty) 19 days ago

Morning Sally.

I know enough about new construction to know, I don't know it all.  Communication is the key and have each change in writing with the cost of any upgrade.  

Posted by James Dray, Exceptional Agents, Outstanding Results (Fathom Realty AR LLC) 19 days ago

Sally and David, this is an excellent post. Buyers need representation when purchasing new construction. I'm always amazed at how many don't think it's needed when purchasing a brand new home.

Posted by Amanda S. Davidson, Alexandria Virginia Homes For Sale (Amanda Davidson Real Estate Group) 19 days ago

Excellent advice for any buyer who is considering a new home purchase.  They need to have representation by a professional.

Posted by Gabe Sanders, Stuart Florida Real Estate (Real Estate of Florida specializing in Martin County Residential Homes, Condos and Land Sales) 19 days ago

New home buyers will be in very good hands when they select you as their listing agent.

Posted by Roy Kelley, Roy and Dolores Kelley Photographs (Realty Group Referrals) 19 days ago

Yes I agree. Buyers need a buyer's agent to represent them when buying new construction...Yes, Yes, Yes!

Posted by Lawrence "Larry" & Sheila Agranoff. Cell: 631-805-4400, Long Island Condo & Home Sale Specialists (The Top Team @ Charles Rutenberg Realty 255 Executive Dr, Plainview NY 11803) 19 days ago

Sally, great post, and buyers are usually shocked at the price the home will actually cost - when the builder says = prices start at $300,000.    Then the home comes in at over $400,000.    Buyers do need representation.

Posted by Joan Cox, Denver Real Estate - Selling One Home at a Time (Metro Brokers - House to Home, Inc. - Denver Real Estate - 720-231-6373) 19 days ago

New home buyers always need the assistance of a buyers agent. New construction has many possible snares.

Posted by Debbie Reynolds, Your Dedicated Clarksville TN Real Estate Agent (Platinum Properties) 18 days ago

This is right on target, Sally and David. These are so many important issues mentioned here that home buyers need to consider, and not on their own, when looking at new construction. A good buyer’s agent can really help!.


Posted by Jeff Dowler, CRS, The Southern California Relocation Dude - Carlsbad (Solutions Real Estate ) 18 days ago

Well said! EVERY BUYER of a new home needs their own representation. I just had a client’s child buy a home from the developer’s representative. Her parents tried to get her to let me represent her. I hope she gets a good deal

Posted by Tom Bailey (Margaret Rudd & Associates Inc.) 18 days ago

Unknowns that lurk with new construction slippery slope... you point out the pitfalls to going it alone Sally K. & David L. Hanson !

Posted by Andrew Mooers | 207.532.6573, Northern Maine Real Estate-Aroostook County Broker (MOOERS REALTY) 18 days ago

I agree. Purchasing new construction can be harder than an already constructed house because you cannot see exactly what you're getting when you make your offer. Using a buyer's agent does not cost any more!

Posted by Kat Palmiotti, The House Kat (Grand Lux Realty, 914-419-0270, 18 days ago

This subject can also include buying land. Many questions to ask, do I need a well, what about sewer line or septic, how small can I build? So many questions...

Posted by Raul Rodriguez, Looking out for the client's interest and not my p (Covenant Partners Realty) 18 days ago

Congratulations on your well deserved feature. I love writing about new home construction and this is a great look at the issues that buyers never knew to ask

Posted by Lise Howe, Assoc. Broker and Attorney Licensed in DC, MD, VA, (Keller Williams Capital Properties) 18 days ago

Great advice! 40% of new homes in our area are purchased with out an agent! Scary!

Posted by Gary & Melynda Wolter (CRS) 480-269-1164, Relentless, Reliable, Premiere Personal Service (West USA Realty) 18 days ago

Good morning Sally K. & David L. Hanson ,

Great post..congratulations on the feature. Excellent advice to buyers thinking of new construction. Having a buyer's agent is a real Austin 80% of new construction is handled through agent representation. The builders court agents and offer many classes on the process..a buyer is really foolish not to have representation some feel they can negotiate better and take off the commission. The commission is in a different builder budget and an agent will always get their buyer a better deal! They are bringing buyers all year long its not just a 1 shot deal.

Posted by Dorie Dillard, Serving Buyers & Sellers in NW Austin Real Estate (Coldwell Banker United Realtors® ~ 512.346.1799) 18 days ago

Different animal as they say, love this post. I have built a house in my town, well village, 4100 people, so I know all the village rules. Just picked up a job with a builder to represent 5 custom homes! I am stoked and it helped I sold one of his to a custom home buyer in a neighbor village first. 

Posted by Corinne Guest, The Choice of Professionals for Luxury Home Buying (Barrington Realty Company) 18 days ago

I had buyers for a patio home a couple of years ago, and the community had a mandated mail box & post.  Included in the price?  Nope.  My gift to my buyers, not going to let something as asinine as a mail box not being included spoil the feel good buzz they had.

Posted by Liz and Bill Spear, RE/MAX Elite Warren County OH (Cincinnati/Dayton) (RE/MAX Elite 513.520.5305 18 days ago

Good morning Sally and David   Congratulations on the Feature!  You brought up so many great points to purchasing a new construction (with the help of an experienced agent).
One of my buyers is currently under contract for their new construction and they thank me often for my attention to details.  As the home approaches completion, I will be sharing examples of how a home inspection can be valuable too - yes, even on new construction (:

Posted by Alesha A. Wilson, M.Ed., MRP, Buy and Sell with Confidence (525 Realty Group) 18 days ago

Good morning Sally K. & David L. Hanson, excellent advice to all buyers who are considering new construction. Many think they're getting a "better" deal without a buyer's agent but it's the opposite. Congratulations on the feature!

Posted by Beth Atalay, Cam Realty of Clermont FL (Cam Realty and Property Management) 18 days ago

They also need to steer clear of their "in house lender" and those "free upgrades" if you use that lender. They usually come with higher fees and higher interest rates to cover those upgrades. The buyer also needs to choose their own attorney/title company (not the builders) so they have their own representation.

Posted by Andrea Moore (The Mortgage Market of Delaware) 18 days ago

Some first time home buyers also think that just because the house is brand new that they don't need a home inspection. Thanks for sharing. Great post.

Posted by Lanre-"THE REAL ESTATE FARMER" Folayan, I don't make promises.I deliver results.SOLD HOMES (Keller Williams Select Realtors-Buy a home in Washington DC. Sell a home in Washington DC) 18 days ago

Amen and Hallelujah! Thank you for this post Sally K. & David L. Hanson. And the reference to "Areas of Expertise." It touches a lot of parts of our industry.

Posted by Jim Harper (Atlanta Communities Real Estate ) 17 days ago

AMEN, AMEN is all I have to say!

Well, and the builders with integrity are few and far between and it's ALWAYS best to have your own representative when buying new construction!

Great post, Sally!

Posted by Debe Maxwell, CRS, Charlotte Homes for Sale - Charlotte Neighborhoods ( | The Maxwell House Group | RE/MAX Executive | (704) 491-3310) 17 days ago

Great blog about what to watch for in new construction!!!

If you are looking at or showing new construction as an agent you need to have a thorough understanding of what is included and what is not...or may be an upgrae and is not included is the "base price" listed...the lot may not be either !

Posted by Sham Reddy, CRS (H E R Realty, Dayton, OH) 17 days ago

New construction uses an hypnosis where you are dazzled into wanting to buy

Posted by Richie Alan Naggar, agent & author (people first...then business Ran Right Realty ) 17 days ago

As a loan officer I educate buyers to take their agent with them everywhere, fsbo's and new construction included. Most new construction prices in a fee for a buyer's agent anyway; what do you suppose they do with it when there is none? Reducing the price is not likely.

Posted by Dora Griffin, NMLS 6380 (D A Griffin Financial.LLC) 17 days ago

What a great post with so much valuable information on New Construction.

Agents too often think they know more than they know. New Construction has many twists and turns.

Without experience and education on what a builder provides (they all differ) the agent may not serve the best interest of the buyer.

Understanding Builders Contracts is also very important.

Thanks for a great post.

Posted by John Wiley, Lee County, FL Real Estate GRI, SRES,GREEN,PSA (Right Move Real Estate Group- EXP Realty) 17 days ago

I always force my buyers to use an inspector during pre constructions walk-throughs....

Posted by Ricardo Mello, Manhattan & Miami Real Estate Broker (Manhattan Miami Real Estate) 17 days ago

Totally agree with you, new construction is a different type of sale--much more risky I think as well

Posted by Mary Hutchison, SRES, ABR, Specializing in Brookside, Waldo, Prairie Village (Better Homes and Gardens Real Estate-Kansas City Homes) 17 days ago

New all sounds great-until you ask to have your own inspections.

Posted by Michelle Carr-Crowe-Top 1% Diamond Certified Real Estate Team Sells Cupertino San Jose Homes-Just Call 408-252-8900, Family Helping Families Buy & Sell Homes 40+ Years (Get Results Team...Just Call (408) 252-8900!) 16 days ago

Congratulations on the featured article.  I love to sell new construction.  Your article is spot on.  It is important as an agent to ask a lot of questions to the new home sales person and to make sure your client understands what they are getting.  The model homes they are viewing are typically "loaded" with upgrades.  Even things such as baseboards and all kinds of other things.

Posted by John Myers, Your Trusted Real Estate Advisor (Myers & Myers Real Estate, Inc) 16 days ago

Feature for sure and one that everyone in the rain should be reading.  Thanks for your great talents in writing and helping off of us.


Posted by Will Hamm, "Where There's a Will, There's a Way!" (Hamm Homes) 11 days ago