New Construction

2009 Parade of Homes Begins Tomorrow!

September 25, 2009 by Sasha C. Farmer Realtor · Leave a Comment 

2009 Annual Parade of Homes!

The Parade of Homes is an annual Charlottesville tradition that always occurs across two weekends (this year- September 26/27 and October 3/4) and showcases the best in new construction that Charlottesville has to offer. I know that for many people in Charlottesville who like to keep their eye on real estate, this is one of the most fun real estate events of the year! What better than touring through beautiful mint condition homes that are decorated impeccably to get great new ideas for your own home?!

But I just bought a home/am not looking to buy a home!

Whether you are in the market to buy a home or are just looking for fun, interesting remodeling ideas for the home you’re already in, this is really an excellent opportunity to learn more about our local builders and check out the new and upcoming trends in real estate construction.

For a full list of the 30 homes on display in the 2009 Parade of Homes, click here!

Just don’t get all googley-eyed and forget to involve your favorite Realtor!

Remember: If you are currently in the the market to buy a home, many of these developments are represented by salespeople who are employees of the builder and who aren’t licensed real estate professionals. I always recommend getting involved with a Realtor before making any significant real estate decisions!

New Home Construction Contracts; Financing

January 3, 2009 by Sasha C. Farmer Realtor · Leave a Comment 

 

For part two of my new home construction contracts analysis, I thought I’d add financing information;

Who do I have to use for my loan?

“If one or more loan amounts are set forth in Section 3, then this contract is contingent upon Purchaser obtaining one or more commitments… at the prevailing rate of interest in Charlottesville, VA. If purchaser receives such commitment for the financing… Purchaser agrees to accept the same.”

“If Purchaser’s application for financing is not approved in 45 days, Seller may ’submit another applications on substantially the same terms to a lender chosen by the Seller… and if such applications results in the issuance of a loan commitment… Purchaser shall be bound to accept such commitment.”

“Purchaser is required to complete a Mortgage Application with the Seller’s preferred lender, Countrywide Home Loans.”

What happens to my earnest money deposit?

While the Virginia Association of Realtors’ Standard contract provides for the earnest money deposit to be held in escrow until closing, this is not always the case with non-standard contracts. Here is a paragraph that is in 2 contracts that we see quite often here in Charlottesville.

“If the escrow agent is the SELLER, the DEPOSIT need not be kept separately (i.e. in escrow) but may be used in SELLER’s business.”

This should be a major red flag with so many builders currently in financial trouble- it essentially means that it can be used for whatever that builder deems necessary in the course of business, but doesn’t provide the buyer much protection in the case that a builder goes out of business.

New Home Construction Contracts; The Actual Home

January 3, 2009 by Sasha C. Farmer Realtor · Leave a Comment 

In Charlottesville, we have several new home builders whose contracts differ pretty extensively from the Standard VAR contract that we typically use in re-sale transactions, and I felt that some of these differences were worth pointing out, just so that potential buyers are aware of the things they may find in contracts that stray from “the norm.”  While I have worked on a handful of new construction contracts and we were always able to find a meeting of the minds and I’ve most often had very positive experiences come from them, I do think that it is very important to advocate for my buyer clients and make sure they fully understand what they are signing.

I recently went to a great luncheon held by Compass Home Loans, where local attorney Stacey McDonough from Martin & Raynor spoke to us about some of the interesting things she has noticed in these contracts, which intrigued me to look through them a little more carefully.  I have put some of the most interesting of the stipulations below.

So, what kind of house do we actually get?  Here are a couple of good ones, all pulled from just one builder’s contract that we use quite a bit here in Charlottesville.

“The home to be erected hereunder may not necessarily conform to the model home or model home area”

“Seller makes no representations with respect to Lot grades, Lot area, options, facades, home lay-outs, location of walks, driveways, personal property, fences, patios, decks, recreational facilities, landscaping, or any other representations whatsoever unless otherwise expressly provided herein…”

“Seller makes no representation with respect to the home type, size, style, price range or location of other homes to be built in this subdivision.”

“In its marketing brochures and documents, Seller may use different methods of calculating the square footage of the home and makes no representations as to the actual square footage of the home, regardless of the method utilized.”