Episode 21 - 3 Tips for Working with Builders!
In this episode, Nelson has 3 quick tips to help you succeed when working with a builder. Builders and their agents and lender’s don’t always have the buyer’s best interests at heart – and this episode will help you protect yourself!
3 Mistakes to Avoid When Buying a New Construction Home in Utah
Buying a new construction home in Utah can feel exciting and seamless. Model homes are beautiful, the process seems simple, and everything feels brand new. But behind that polished experience, there are a few critical things every homebuyer should understand before signing a contract.
At Nelson Barss Mortgage Team, we’ve helped thousands of first-time homebuyers navigate this process. Our goal is simple: help you make confident, informed decisions so you don’t overpay or get taken advantage of along the way.
Here are three essential tips to protect yourself when working with builders.
1. Always Bring Your Own Real Estate Agent
Walking into a model home without your own agent is one of the most common mistakes we see Utah homebuyers make.
The agent inside the model home works for the builder. Their job is to get the best price and terms for the builder, not for you.
When you bring your own agent:
They represent your best interests
They negotiate on your behalf
They help protect you throughout the entire build process
And here’s the key detail many buyers don’t realize:
If you visit a builder without your agent the first time, you often cannot add one later.
That means no one is advocating for you when:
Contract terms are finalized
Construction issues come up
Final numbers are reviewed before closing
If you're buying a new construction home in Utah, having the right team matters from day one.
If you’re unsure where to start, schedule a quick consultation with us. We’re happy to walk you through the process and connect you with trusted local agents.
2. Be Careful with the Builder’s Preferred Lender
Many Utah builders offer incentives if you use their preferred lender. This can include:
Closing cost credits
Free upgrades
Rate incentives
On the surface, it sounds like a great deal. But it’s important to understand why those incentives exist.
In many cases:
The builder has a financial relationship with the lender
The goal is to keep the home price higher
The loan may look attractive, while the purchase price is inflated
There’s also the issue of appraisals. Builders often work with appraisers who are familiar with their pricing, which can make it easier for homes to appraise at higher values.
As a homebuyer, your job is to make sure the entire deal makes sense, not just the incentives.
Here’s what we recommend:
Always get a second opinion on your mortgage
Compare total cost, not just monthly payment or credits
Ask questions if something feels off
Sometimes the builder’s lender really is competitive. Other times, it’s not.
We can review your loan estimate side by side and help you spot any gaps or hidden costs. Reach out anytime for a no-pressure review.
3. You Can Order Your Own Independent Appraisal
Most buyers don’t realize this, but you are not limited to the builder’s appraisal.
You can hire your own independent appraiser, typically for around $500, to evaluate the home’s value based on the broader Utah housing market.
This can even be done before you sign the contract using the builder’s plans.
Why does this matter?
Because the purpose of an appraisal is to answer one simple question:
Is this home worth what I’m paying for it?
An independent appraisal:
Looks beyond the builder’s internal sales
Uses wider market comparisons
Helps you avoid overpaying
For many Utah first-time homebuyers, this step can provide clarity and peace of mind before moving forward.
Buying a Home in Utah? Build Smart from the Start
New construction homes can be a great opportunity. But like anything in real estate, the details matter.
To recap:
Bring your own agent from day one
Be cautious with the builder’s preferred lender
Consider getting your own appraisal
These simple steps can help you avoid costly mistakes and feel confident throughout your homebuying journey.
At the end of the day, our mission is to help you succeed, not just close a loan.
If you're planning to buy a home in Utah, schedule a consultation with Nelson Barss Mortgage Team. We’ll help you understand your options and build a strategy that works for you.