Nearly all buyers of new-construction homes — 88%, according to a nation-wide survey in 2013 — involved a real estate agent in the transaction. While it may not be required, if you are considering or buying a new-construction home, you should consider it. Most new-home construction projects — particularly large developments — have sales staff to assist in the transaction. They are knowledgeable about the project, the home models, and incentives. But in contrast to a real estate buyers agent, their job is the project, not you. Times have changed; builders expect real estate agents, and frequently the commission for an agent is built in to their pricing. Agents help guide buyers to realistic choices and help them in the complex purchase process. Building a relationship with an agent, and building their knowledge about a development, can also lead more people to the builders project. If you do have an agent, make sure they are contractually committed to represent you in the process. If you do not have an agent, look for a buyers agent or new-home cobroker to help.

You may run across the terms "production builder" and "custom builder." They sound complicated, but its pretty simple. Think about buying a dress or a suit. You can buy one "off the rack", or have a tailor measure and make for you. Production builders create a "rack" of homes; custom builders measure lots, learn buyer preferences, and make highly customized homes. Which you select depends on your budget and preferences: How much time do you have? Do you own a lot on which to build? How much design input would you like? Production builders frequently build multiple homes on multiple lots in the same place, so they generally combine the home and the lot in a package deal. If you already own a lot, a spot lot builder who constructs an off-the-rack model from plans on your lot, may be your only alternative to a custom builder. As with suits or dresses, quality and price vary for both production and custom builds. Take the time to evaluate both carefully in your local market.

A builder can help make the home-purchase process easier and faster by making arrangements to have a lender on-hand who is already familiar with the project and/or models. The question the home buyer must answer for themselves is, is this "preferred lender" the best choice for them. The most effective way to do this is probably to obtain loan terms from other lenders. With multiple Loan Estimate forms in hand, you can easily compare apples-to-apples and see what advantages the preferred lender has to offer. In addition, you should be aware of current market conditions for transactions like yours. Compare all terms carefully; if in doubt, or if some aspect of a builders offer are only available with the preferred lender, ask for clarification in writing. Should you feel pressured toward one particular lender, ask for written confirmation that no parties are receiving monetary benefits from any other parties. That is illegal under RESPA (Real Estate Settlement Procedures Act) regulations! The desire to close quickly is natural, but make sure your long-term financial interest and home choices are not compromised for short-term speed. .

New-home builders frequently offer additional terms to help close sales quickly; these are usually called "incentives." Incentives are frequently used at critical times, like the end of a financial period, or for particular models or lots. Here are some of the most common: Cost-reduction incentives reduct short-term or up-front costs. For example, a builder might use a cash contribution to closing, or waiver of premiums on the lot, as cost-reduction incentives. Value-add incentives provide upgrades to the home being purchased. A decorating allowance to upgrade appliances, floors or fixtures is a common value-add. Value-to-buyer incentives are not necessarily connected to the house, but they are of value to the buyer. A trip to Hawaii, a car lease, or a big-screen television are all examples of this. Time-to-close incentives speed up the process. For example, if the builder has arrangements with a lender, with details of their project and models already in place, the buying process could be accelerated. While incentives can be emotionally tempting, try to evaluate them neutrally. Would you BUY the item or addition? What will it actually cost over time as part of the mortgage? Is the price fair or inflated? With lender arrangements, ensure that the terms are still fair compared to market terms. As a final check, get advice from your real estate agent or certified new-home cobroker.

Deciding "older home or newer home" is a unique challenge for each buyer and place. Here are some general guidelines to think about. Home Age and Neighborhood Age. More-established neighborhoods with a higher average home age develop their own ambiance over time. Is that what you want? Property Tax Rates. An older home may have a lower tax rate; make sure to ask and compare. Maintenance. Homes require maintenance as they age, but you should assess what has already been done on an older home case-by-case. Energy efficiency is also a key concern; building standards have improved efficiency standards over time, so you may find newer homes to score higher on this key cost. Consider what you want to spend time on, and what you enjoy as well.

REALTOR® is a registered trademark, as the ® symbol indicates. Only members of the NAR — National Association of Realtors — are allowed to use the trademark as part of their professional title. Members have access to educational resources and certifications around the complex real-estate process. They are also required to adhere to a Code of Ethics. According to NAR, their aim is to be experts in real estate, trends, and their local community, in order to help both buyers and sellers succeed. Roughly half of the people who can sell real estate (by getting a state license) take the additional steps to join NAR and become a REALTOR®. You can find licensed a REALTOR® by searching the NAR directory, or browsing regional resources.

Legal assistance is required in the home-buying process in some US states, but not others. States that currently require a real estate attorney to be involved include: Alabama Connecticut Delaware District of Columbia Florida Georgia Kansas Kentucky Maine Maryland Massachusetts Mississippi New Hampshire New Jersey New York North Dakota Pennsylvania Rhode Island South Carolina Vermont Virginia West Virginia As states pass new legislation, this list may change, so check local laws. Even if a lawyer is not required, the agreements and documentation in a home purchase do involve legal commitments. Engaging a legal representative may be helpful.