Wednesday, January 26, 2022 / by Diane Breard
Building your dream home from the ground up can be exciting. You get to choose your lot, the floor plan, the exterior design, the interior finishes and any upgrades. But it’s a common misconception when you’re buying a new constructed home that you don’t need to work with a Realtor®. However, that’s not necessarily true. Below are some good reasons why it makes sense to have a real estate agent represent you when building your new home.
The sales agent works for the builder.
The real estate representative in the builder’s sales office represents the builder’s best interest not yours. An independent real estate agent represents your interests and advocates on your behalf. Additionally, a real estate agent will help you get the most value for the least amount of money and make the real estate transaction easy and frustration free.
Your real estate agent is your advocate.
Your Realtor is obligated to work toward your best interest. Working with a Realtor, gives the client another advocate to help protect their interests. The Realtor is going to make sure the buyer knows what their rights are, so they don’t feel like they have to be forced into something and they can give you perspective on things that may affect future resale as well.
Hiring a Realtor comes at no cost to you.
When working with builders, there is no additional cost for working with a Realtor. The builder will pay your agent’s sales commission.
A Realtor can help you choose the right builder and neighborhood.
An experienced realtor can show you what the neighborhood values are currently for resale, which will help give you perspective when it comes to building your house, so you’re not necessarily over-building for the neighborhood – at least, not without knowing that you’re doing so.
The right choice for your budget.
New construction can be overwhelming, because there are an endless number of choices to select. It is really easy to want to buy a million dollar house, but you only have a $300,000 budget. A good Realtor can help guide some of your decisions within your budget and they can help make sure that your budget is in line with what you’re trying to accomplish.
A Realtor can help with lot, floor plan and upgrade selections.
A Realtor can help guide you by making recommendations on items that appeal to a larger number of future buyers, if you think you may sell your property in the future. For example, the lot you may be thinking about buying may save you some money upfront, but it may not be the best lot selection when it comes to resale value.
Also, when working within your budget, a Realtor can guide you on what items are better to install now versus items that are easier to improve upon later, such as a basement versus a bonus room or 2-foot bump-outs versus upgraded flooring.
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 interests will help make sure you’re aware of what’s included in the base price and what’s extra.
A Realtor will be aware of builder promotions and may be able to help you help negotiate a better price and terms.
Negotiating the home price depends a lot on supply and demand as to whether the builders will negotiate or not. Particularly, if it is a spec house versus true new construction. Currently, there is less inventory out there for buyers to choose from and the demand is starting to increase. That usually creates a situation where there is a larger demand for new construction as well. So if the builders are busy, they are less likely to want to or be willing to negotiate. However, realtors are aware of promotions that builders are advertising, so they can pass that information along to you.
A Realtor will guide you through the building process, if needed.
When talking to your Realtor, it is important to clarify what your expectations are concerning their presence throughout the process. You may want your Realtor to attend the selection process, the walk-through and other meetings with the builder.
Also, prior to closing, your agent will make sure you have all the information you need. Because it can sometimes be more difficult to get things accomplished after closing than prior to closing. Your Realtor can be a communicator to make sure you have all the “I’s” dotted and the “T’s crossed.
Your Realtor can help with your lender selection.
Sometimes, builders have relationships with certain lenders. They will try to offer some incentives so you will work with that lender. But it’s always a good idea to talk with another preferred lender to make sure what you think you’re getting, you are in fact receiving. At the end of day, you need to compare apples to apples and the incentive is not always the best option in all cases.
As you can see, hiring a Realtor to represent you when purchasing a brand-new home provides many benefits.
If you decide to work with a Realtor, just make sure you take your Realtor on your first visit to any model home. If you go in without your Realtor and try to take them back, the builder will not pay your Realtor and you will not get the representation you deserve.
If you’re interested in purchasing a new construction home, contact our team today!