Home Builder Austin

I'm buying a new home from a custom home builder and paying cash.?

If I pay cash for a new home that I'm buying from a custom home builder will I still have all the regular fees at closing? There is no realtor involved with the sell.

Public Comments

1. Look at your contract. Either way, you'll want title insurance. It's a nice thing to know you'll always have legal claim to the property your home is on.
2. There will still be some fees involved as you will need a title company or lawyer to complete the transaction. It will be cheaper than a normal deal with a lender of course because you will avoid their fees. Normally builders have a typical title company that they work with on all of their deals and your contract should state that. If not just ask your builder for the title company or closing agents contact information (they may do the closing themselves). The title company would be able to go over all the fees they require on the new property and the contract should state which of those fees your responsible for and which the builder is. In a normal buyer/seller transaction, the seller is responsible for 4 items: ~1/2 of the escrow/closing fee (paid to title company) ~1/2 of the title insurance (paid to title company) ~the entire title exam (paid to title company) ~the entire convayence fee/transfer tax (paid to county) However when your dealing with a builder, sometimes they apply all fees to the you as the buyer. So in short, read over your contract in detail. If you still have questions, contact the builder and/or title company.
3. Hi, It sounds like you are a new home buyer. I am going to give you some very valuable advice here, regardless of who is selected as the best answer, lol! Closing costs are a little different from area to area, but the seller usually does not pay for the buyer's title coverage, it's your policy just like the homwoner's policy you will buy prior to closing so you won't lose you investment (generally a bank requires it, but since your are paying cash). There are many other safeguards afforded to a buyer in obtaining a loan and you really need to consider this: The lender requires an appraisal, is the price really what the property is worth??? DO NOT SIMPLY RELY ON THE BUILDER TELLING YOU IT'S WORTH MORE OR A GOOD DEAL, GET IT APPRAISED based on the plans and specifications! Another point, GET THE PROPERTY INSPECTED WHEN IT IS COMPLETED, not just an occupany permit from the building permits office, but by a home inspector! I guarantee you there will be items that need to be fixed, finished or adjusted. Those items should be and really must be done prior to closing, don't take possession without it all being done. If you have money to pay cash you have money to do this right and not get screwed! TWO REALLY BIG THINGS ....APPRAISAL and INSPECTION!!!! Most builders are honest, but not all. All builders are your very best friend before settlement. All builders will tell you thier home is worth the money you pay them. All builders will say they will take care of items not working, unfinished, etc. and most will say they are really busy on another house right now and just give them a few days! Some builders will be back and finish something, some will be back before the year is out, some may stop by, but won't get it done and some you will never see again! So get the "punch list" fully done prior to settlement of do not close! Now, if the appraised value on the plans or finished house is less than you are paying, you contracted at that sale price, so you are stuck because your deal is not contingent on financing, you don't get the safeguards built in for borrowers, so what you will have to do is make the contractor bring his "contractor grade" materials up to a higher standard, improve landscaping, etc. until the appraiser tells you the house is worth the money. I've dealt with so many people who bought builder homes, seller financed by the builder, where they did not go to a lender, and each and ever one got screwed, everyone one of them! Which leads me to wonder, why would you not invest your cash, even in CD's, get a 30 yr fixed rate loan, deduct the interest and be in a cash position with savings or at least more savings and in a position to pay off the loan any time you wanted to???? Some very very very wealthy people do not use thier money in buying real estate. Unless the "custom" builder is your daddy or your brother, get some advice! Sounds like the only one you are working with is the guy selling you a house and you are on here trying to get answers, Geeeee! I wish you the best luck and hoipe it's not too late for you, get professional advice. My last dealing in this kind of matter was a woman who had some money, thought she was so special and could get a great deal because she had cash in had and only "HAD TO" deal with the builder. She bought a pile of troubles, lost money and is still losing money! You can probably hire a realtor as a consultant on an hourly basis to answer questions, many are starving now, try the small brokerage realtors. Get an appraiser out of the phone book or call your bank and ask who they use, they should have an approved list. Call a home inspector! Get the builder to treat the property for wood destroying insects as well, something usually not done since the lender has it inspected and sees to matter such as that. Good luck.