RALEIGH NEW HOME REALTY

Once the contract has been signed by the home builder, please provide a copy to us so we can follow through on the contract-to-closing process.

At closing you will need to prepay property taxes and insurance, purchase a mortgagee title policy, pay loan origination fees, etc. Ask your lender for an estimate of your closing costs based on your projected closing date, but be aware exact closing costs will not be known until the closing attorney calculates prorata debits and credits just before closing.

Sometimes, but not typically, closing costs can exceed the new home rebate. However, excess credits can still happen, usually when buyers try to combine seller credits (a common new home builder incentive) in the same transaction with a real estate agents new home rebate.  What to do?  Plan ahead and structure the deal from the outset with a lower price or other incentives instead of closing cost credits from the home builder (upgrades, lot premium, appliance packages, etc). That way the seller nets the same amount and you get to use your full new home rebate. Raleigh New Home Realty is glad to assist in these negotiations, but we can help you only if you are aware of the potential problem and bring it to our attention no later than the time the contract with the builder is negotiated.

If you find yourself near closing and your lender says you can’t use all your credits, there may still be some options to increase your closing costs to your advantage. For example, your lender may suggest applying the excess credit to “points,” buying down a lower interest rate. Another option may be to select a hazard insurance policy with more bells and whistles (and cost) than you really need; then after closing you can remove some of the bells and whistles from your insurance policy (it must still meet your lender’s minimum requirements) and the insurance company will refund the difference in premium. However, you would need to discuss these strategies well before closing, because they would probably require your loan to go back into underwriting, which could delay closing and potentially subject you to penalties for not closing on time.

In short, from the very beginning we work directly with the lender and the home builder and together we figure out how to apply the full rebate either to closing costs via the lender or via the home builder in the way of reductions of either upgrades or sale price.

• You must not be represented by another real estate agent through a written agreement;
• You must register with an on-site sales counselor or agent and simply list Rodney McNabb w/Raleigh New Home Realty on the Guest Card as your real estate agent. This offer may be void if you have PREVIOUSLY visited the new home subdivision or development and registered with an on-site sales counselor or agent (unless the builder will waive their policy);
• The purchase contract for your new home (or any addenda) must reflect Rodney McNabb with Raleigh New Home Realty on it as the Selling Broker (aka Buyer’s Agent);
• The home builders that you are working with must agree to pay at least 3% of the sales price in commission to Rodney McNabb and Raleigh New Home Realty. If the commission is less than 3%, then your new home rebate amount will be reduced incrementally. (Ex: If the new home builder pays a 2 ½% commission (which is ½% less than 3%), then the new home rebate to you will be reduced by ½% (so 2% less ½% = 1 1/2% new home rebate to you); and
• The new home rebate must be approved by your lender and the home builder and must also be reflected on the Closing Disclosure (f/k/a Settlement Statement) at the time of closing.