There isn’t much new construction in St. Paul. There are a dozen or so new homes on the market right now. Over all in the metro area there are fewer than 600 new construction homes listed for sale. Most are in the burbs. The average size of these homes is over 2500 square feet for an average price of around 450K. Homes that were built a decade ago in 2005 are about 100 square feet smaller and cost about 80K less than homes built in 2015.
Buyers pay more for new construction but it isn’t like buying a car. The value does not go down, although it may go down a little the first year or two depending upon how big the development is that the new construction is in and what else is for sale in the area.
When buying new construction it is a great idea to bring your real estate agent with. I’ll never forget the call I got from a neighbor several years ago. She bought new construction and ran into a snag and did not know what to do. It was hard to help her because she had signed contracts. She did not know that she could have had me help with the purchase and that I could have saved her some money while making the process more transparent and less stressful.
The friendly people at the model home are representing the seller not the buyer. They can help the buyer and facilitate the sale but that isn’t the same as representing the buyer. The agent at the model will make more money by working with buyer and seller but the buyer won’t save a dime.
The sales people who represent the seller know the development and project better than I do but they are willing to work with a buyers agent. A buyers agent with new construction experience is best because we know what to ask and what to expect and might be able to stop a buyer from signing something he or she might later regret.
Usually the agents at the model home or construction trailer will ask buyers if they have an agent. There is a reason for this. Claiming an agent later on usually causes problems. In most cases people can just walk into new construction without their agent. They will be asked if they have one and they will be asked for the name of the agent. Once given the information the agents will work with your agent.