Why It’s Important To Use a Realtor When Buying New Construction

Mar 11

The real estate representative in the builder’s sales office represents the builder’s best interest, not yours! We would represent your interests and advocates on your behalf. Additionally, we will help you get the most value for your money and make the real estate transaction easy and frustration-free.

If you want to be sure you have someone looking out for your interest, it is imperative you have your agent register with the builder. If this information is upfront when you are buying new construction, your agent won’t be able to represent you and watch out for your interest. If your agent is experienced with new construction there’s a good chance they already have a working relationship with the builder and community for which you are interested.

Agent Fees

If you want to be sure you have someone looking out for your interest, it is imperative that you have your agent register with the builder BEFORE you go into their sales office.. Builders will NOT credit buyers the commission they would otherwise pay to a Realtor. If they were to do so, realtors would no longer bring outside clients through the builder’s doors and ultimately it would impact their future sales. Therefore, there is no downside and no cost on your end to have an outside agent represent you.

What You See is NOT What You Get

You tour the model and it looks great. The problem is the model isn’t the base price of $400,000 being advertised, it’s $500,000 because of all the upgrades. Top-tier granite countertops, crown molding, upgraded appliances, built-in bookshelves, and trey ceilings are usually upgrades and they add up. A realtor representing your interest will help make sure you’re aware of what’s included in the base price and what is extra.

Negotiations

You may be a great negotiator. Even good negotiators have told me they are more effective when they negotiate for other people than when they negotiate for themselves because they don’t have an emotional connection to what they’re buying. (Add me to this group) The agent will look at the transaction from a dollar and sense perspective without being swayed by emotions. A good realtor will also know what is and what isn’t negotiable and as you can imagine it varies by builder. For example, did you know many builders cover some closing costs? Include a warranty? Include free upgrades? Builders are far more likely to negotiate on fees or upgrades than they are the price. As an experienced agent, I will help guide you through negotiations and ensure you are getting the most for your money.

Get Everything in Writing

Any concessions or guarantees provided by the builder should be confirmed in writing. DO NOT sign any paperwork or contracts without ensuring everything you’ve agreed upon including upgrades, fees, timelines, etc. are incorporated into the contract. If you skip this step, the builder does not have to deliver what they agreed upon and you will have no recourse. We will ensure all the terms agreed upon are included in the contract.

Financing

The world of real estate financing can be very confusing and complex. The agent you choose to work with should be able to recommend several mortgage brokers and provide contact information. You will then be able to evaluate all of the mortgage programs available to you and choose one that best suits your needs. It’s important, as you’re securing financing, that you strongly consider using a local mortgage company. Local mortgage companies understand what the process is for real estate transactions and also any local rules or regulations.

A Buyers Agent Will Keep The Transaction On Schedule

Delays in real estate transactions happen, but this doesn’t mean that it’s acceptable. A delay in a real estate transaction is frustrating to all parties involved, especially for a buyer and a seller.

Having us represent you will greatly improve your chances that your real estate transaction will stay on schedule. There are dozens of reasons why real estate closings are delayed, many of which can be avoided by hiring a top buyers agent.

A buyer’s agent is responsible for making sure that contract dates, such as a written mortgage commitment, are being met. Other culprits of closing delays include delays in appraisals being ordered or delays in an instrument survey being completed. An organized buyer agent will have a system in place that ensures these delays are avoided.

Market Knowledge

When shopping for a home, it is critical to understand the market values on homes and how to compare properties. An experienced agent will be able to conduct research and present you with plenty of data on the current state of the market. Additionally, they will be able to advise you if a home you’re looking at is priced way above market value or below.

Final Thoughts

There are many reasons to hire a real estate agent when buying a house and the reasons discussed above should make it clear, hire a seasoned professional to protect your interest.