Expert: Connie Wildasinn-Broker,GRI,Realtor® - 9/6/2010

Question
Connie, I just had a couple of questions as a potential homebuyer.  Over the past several months, I've done a lot of research and viewed over 50 houses and finally found one that I really like and might make an offer on.  It's a newly-built 3-bedroom townhome (duplex) unit that fits my family's needs and has been on the market since April of this year. I am pre-qualified to buy and I just had a couple of questions to ask you:

1. First off, should I have an inspection done prior to submitting an offer even if the house is newly-built?  
2. Secondly, the realtor I am working with advised me that the builder-seller will probably "not" budge much on the listing price due the costs involved in building the townhome.  This kind of throws me off as to how I can make a reasonable offer on the home.  Should I just offer the full price and have the builder shoulder closing costs
or still submit a lower offer and include closing costs?
3. Lastly, are there any "buyer" pitfalls I should be aware of?  As a first-time homebuyer, I can only read so much on the subject and learn it all. I'd really like to know of any good buying/negotiating tips you could pass on.  I'm really nervous and apprehensive about going into the offer/negotiating stage!

Any helpful advice/buying tips you could extend me Connie I would highly appreciate!  Thank you kindly in advance and more power to you!!  

Answer
Hi Mark,

Congratulations on making the decision to buy... prices are great and interest is at an all time low...

To answer your questions, Read your contract to purchase very carefully and be sure you have your own agent to look after your best interest...

1. On the inspection... ALWAYS have a physical inspection, unless you are flush with cash, have done this many times, and have a good background in remodel and construction... if not ... be sure your contract allows you time to have professional home inspector do an inspection...even new homes have issues...
2. Follow your guts on the price, you say the property has been available since April... decide what you want seller concessions or price reduction...know what is most important to your bottom line. If you don't have the funds to close the deal... on a real good deal you may have to go over the ask price just to get the offer to the net where the seller will accept your offer... make an offer but don't low ball so low you insult the seller... have your agent run comparables to see how this property should sell dollar wise... and how how long properties stay on the market in general...keep in mind, every time you ask a seller to cover or pay something you took away money from your offer... so don't go into your head and say I offered a full price deal and only wanted x dollars back...that x dollars back was money off to the seller.
3. As far as pit falls, sure there are, but that is were you have a good agent, you need to really listen and ask questions until you understand the answer...but really the largest hurdles, negotiating the price, getting an inspection and possibly negotiating out those items that show up...the appraisal - be sure the bank will lend on the property at the price you and the seller agreed to and the loan... be sure you are pre-approved with a SOLID lender...get someone who has been in the business... time are very consecrative right now and you need a lender who really knows the business..

Good luck... let me know how you did!