Need urgent advice on realtor and builder home inspection

[Rika Dodda]

Hi I am trying to buy a new build SFH as my first investment property and my realtor has been strongly pushing for one by Starlight Homes. I believe by how strongly he advocates for Starlight while speaking negative of all other builders (at least 4) in the area that he is a sales agent (or getting some additional money) for Starlight. I would consider it more but the price is significantly higher compared to other builder homes in the same zip code and I will not cash flow immediately. A few min away, I see much cheaper bigger homes by Lennar with better incentives and rates and I will cash flow immediately. My realtor keeps trying to use a multitude of reasons to go with Starlight only, one of them being Lennar build quality. He keeps texting (unprompted) to talk badly about Lennar and I'm starting to get worried.

I do understand Lennar has a bad reputation on home quality but couldn’t I simply just get a third party inspector and state that I will not move forward to closing unless a list of items are fixed? Is there something I’m missing? From what I saw of Starlight Homes , the quality of the homes in the same zip code wasn’t that great either compared to Lennar. I don’t know if I’m becoming victim to fear mongering here - it’s my first time buying an investment property and I neither want to be naive of how to navigate builder inspection issues, nor do I want to feel victim to my vulture-like realtor. 

Please help - any guidance is appreciated 🙏

[Michelle Crochet]

Hey Rika,

It's great that you're doing your due diligence and seeking advice on this situation. Buying a new build SFH as your first investment property is a big step, and it's important to make informed decisions.

Comparing builders is a wise approach. You've done well in noticing that the price, incentives, and potential for immediate cash flow differ between Starlight Homes and Lennar. It's true that home quality can vary from builder to builder. Both builders have pros and cons, and the key is to carefully assess these factors based on your investment strategy.

Having a third-party inspection is a smart move. Regardless of the builder you choose, getting a professional inspection is a critical step. Inspections can help identify any construction issues or concerns that might not be immediately obvious. If you're concerned about home quality, you can include an inspection contingency in your purchase agreement, specifying that certain issues need to be resolved before closing andd this gives you leverage to negotiate repairs or adjustments with the builder.

Remember, this is your investment and your financial future. While your realtor's input is valuable, the ultimate decision should be based on what aligns with your investment goals and risk tolerance. It's okay to stand firm and make choices that are in your best interest. If you're feeling uncomfortable or unsure about your realtor's motivations, you might consider seeking a second opinion or even working with a different realtor who can provide unbiased guidance.

Trust your judgment, do your research, and ensure you're comfortable with your decision. Best of luck with your investment journey, Rika!! :)