Our guest today is Michael Leoppky with Maxwell Devonshire Realty. He is joining us to discuss what you need to know about buying a brand-new home versus buying resale.
[0:20] Tell me about yourself.
- I became a licensed agent a little over 2 years ago. Before that, I worked in the new home building world for over 11 years.
[0:58] What are the differences between being a realtor and being a builder salesperson?
- The licensing. There’s a fair amount of education and accountability involved.
- There are legal responsibilities to my clients, compared to the entirely different area of builder representative. There was a lot less black and white there.
[02:21] What led to your career change?
- The main appeal was having that black and white aspect of realty.
- Committing to people’s best interest really appealed to me. In the building world, you were always forced to pick a side.
[03:39] What are the advantages of buying new?
- Typically, you are getting new technology. Everything is built to today’s standards and codes, so you don’t have to worry about older build issues.
- Building new, you have the option to personalize that home.
[05:11] What are the disadvantages of buying new?
- While it’s a positive investment, there will be a lag before seeing a return.
- It’s important to look at how long you are planning on staying in the property because of investment appreciation.
[08:09] Obviously, with resale, there’s risk of extra costs like renovations.
- There are all kinds of unknown risks with resale but we take action to mitigate those risks.
[08:33] When meeting with a new client, how do you help them decide which path to take?
- I start with a discovery meeting where I ask a lot of questions and get down into the why and where of moving. Everything builds a picture of what fits with clients’ needs and wants.
[09:50] Why would a buyer opting for a new home want to work with an agent?
- As an agent, I have a legal responsibility to work in your best interests.
- When you walk into a show home, there’s no obligation to disclose. There is no confidentiality.
[12:49] If I make an offer on a place, who has the power to say yes or no?
- The sales manager decides.
[14:50] As a realtor, your background makes you a valuable resource for clients.
- It certainly helps ascertaining reasonable prices. When you get a realtor and salesperson working together that care about the client, that is the perfect situation.
[17:37] If I am using a realtor, am I going to end up paying more?
[21:56] What should buyers be aware of when looking at builders and neighborhoods?
- There is a lot involved to consider. It’s no different than looking at listings. What’s important to you, what are your values?
[27:19] What are some of the biggest misconceptions about new builds?
- That everything is made cheap. Builders don’t make huge margins.
- My default response to ‘they don’t build them like they used to’ is thank goodness.
[30:49] Many contracts say there are no unauthorized site visits. Why is that?
- Safety is obviously the biggest reason. You also have to consider that they have a process.
[33:00] Should you have a subject to inspection clause?
- It depends on the builder, but it’s a good question to keep in mind. Remember that there is warranty insurance.
Associate | Maxwell Devonshire Realty