T10 Reasons You Need A Buyer’s Agent When Buying New Construction
The benefits of using a Realtor to buy new construction are numerous. Here are some essential things a new home Realtor can help with when pursuing new construction.
Undoubtedly, one of the top reasons you should have a buyer’s agent when purchasing a new home is to get a professional’s advice on the builder’s reputation.
One of the best things about working with a good Realtor is that you benefit from their network of agents, vendors, lenders, and other industry professionals.
Word gets around when businesses or service providers don’t take care of their customers in the real estate industry.
If a builder in your area isn’t reputable, chances are the agent will know about it. On the flip side, they are likely to have heard about the builders that go above and beyond for their customers.
With new construction, just about anything can go wrong. You are, after all, building a home that takes a while to construct. There is any number of things that can cause problems, including weather, labor shortages, as well as issues with materials.
Some builders have an exceptional reputation for delivering homes on time. Others are the exact opposite. One of the most significant complaints from those buying new construction is the builder’s inability to complete the home on time.
It doesn’t come as a shocker to know how stressful buying and selling a home at the same time can be when your new home is not going to be completed on time!
A realtor who works with new construction should know where to go for a mortgage. Are you getting a traditional end loan or a loan for construction?
Maybe you don’t plan to build immediately and will need a loan for land instead.
In either case, a new construction Realtor should be able to guide you to the best mortgage lenders for your specific circumstances.
The best value in real estate is not always clear without extensive experience to guide you.
While you can go with your gut, working with a Realtor for new construction can help you choose the purchase that best serves your interests.
Picking out the best lot, the right community for your lifestyle, the neighborhood features you want, and the worthwhile upgrades – your agent can help with all these things.
You are the final decision maker, but the best leaders have capable advisers to help guide their choices.
While you can choose to work with any real estate agent, having someone in your corner with experience selling new construction can be a tremendous asset!
For example, the lot you choose in new construction can have significant consequences. Quite often, buyers choose a lot from a classy-looking neighborhood plan. It will look all green and pretty.
You don’t know what you’re getting from looking at a builder’s marketing plan.
An agent who knows new construction inside and out will ask to see the lot’s specific site plan or property. From this, you will be able to gather the topography of the lot.
Maybe you don’t want a steeply sloping lot? How about finding out there is a large drainage ditch in your backyard? You may discover a large utility box smack dab in your front yard! Are you getting the point here?
Many buyers do not think of these things until they have committed to a contract and it’s too late.
A new construction real estate agent representing your interests can also check out other things that may impact the long-term value of your property.
This is another excellent reason why it is paramount to have a skilled buyer’s agent in your corner.
New construction Realtors know what is in and out of new construction. They can be a great ally in making sure you make the right choices.
One of the nice things about new construction is you should be able to customize the home to your exact needs and wants.
Of course, like any other home, there are specific amenities that are going to be more critical than others. Without proper guidance, you could easily spend a lot of money on things that don’t matter when it comes time to sell.
Again, an experienced buyer’s agent can guide you into some of the best new home upgrades with the highest return on investment. Some improvements make a difference, while others are throwing money away.
A new construction real estate agent with experience working with builders from the ground up can often be a great consultant for making slight modifications to a plan.
Having a buyer’s agent isn’t just important when buying a new home. Having a fiduciary in your corner is always essential.
Many folks often wonder what a buyer's agent does for you. Real estate purchases involve a lot of paperwork and documents that can be confusing and overwhelming. Your agent will make sure all the paperwork is filled and filed correctly.
They will also help you review any contracts you sign to ensure you are protected and getting what you think you are getting. Your agent will verify that you understand all aspects of the contract and that you are OK with them.
If there are any issues, the agent will notice them and be capable of explaining them clearly to you and the builder.
Your agent can also recommend an attorney for real estate who will add addenda to the contract that will guard against complications should something go wrong.
Typically, a builder’s standard contract is written in a highly protective manner that favors the builder.
The attorney can help protect your interests, including looking over the thoroughness of the building specifications and builder's warranty.
When buying new construction, you must have a buyer’s agent. Someone who is in your corner representing your best interests.
In most circumstances, you do not want to go directly to the listing agent. In many states, this is what’s referred to as dual agency.
A strong negotiator understands the value of all aspects of the deal. Your agent understands what you want and need. They also understand what the builder values most.
Because your agent sees both sides clearly, they are most capable of negotiating a deal that will benefit you.
For example – everyone knows the builder will want to sell the home for the highest price possible. But the builder is not just motivated by making as much money as possible from the sale. The builder also wants to keep the price high because it helps the builder sell the next home for a similar price.
The builder can point to your sale and expect the next buyer to accept a price near what you paid. However, because keeping the price at a certain point is so essential, the builder might be willing to give you other concessions in negotiations – such as offering upgrades.
Keep in mind, however, that every market is different. If the builder sells all his homes at full price and does not give away any upgrades, don’t expect your agent to perform miracles.
In some areas, builders can’t build homes quickly enough to meet buyer demand. Don’t expect a builder to discount when they don’t need to.
On the other hand, if it is a buyer's market, a new construction Realtor will have a grasp on what concessions a builder is willing to concede.
Anyone with the financial means to buy a new home can find a builder and purchase new construction. Unfortunately, doing things this way puts the buyer at a considerable disadvantage.
Not only does the average person not have the ability to determine which builders are reputable, but they’re also likely to be taken advantage of by the professionals working for the builder.
It doesn’t have to be malicious; it’s just business. The builder and the builder’s employees are there to make as much money as possible.
With a reputable buyer’s agent, you get to step back and make the critical decisions that will get you what you want – while the agent filters all the marketing, salesmanship, and other noise into the facts that will help you make the best choice.
As previously mentioned, the real estate agent working for the builder is focused on the best interests of his client – the company selling the homes. This cannot be emphasized enough.
You deserve to have your own agent, someone looking out for you. Most of the time, the site agent will be happy to work with your agent. You should always have your own real estate agent to protect your interests.
When buying any home, it is always wise to have an exclusive buyer’s representative in your corner, fighting hard for your best interests.
There are so many questions that can come up when buying new construction. You want a trusted advisor you can bounce your questions off of.
Asking for advice from a builder representative will probably get you very different answers. Hopefully, by now, you understand why having a buyer’s agent when purchasing new construction is paramount to your success.
While it is true that new construction homes will be inspected by city or town officials, you still may want your own professional inspection.
The cost of having home inspections is well worth it in most circumstances, considering the money you’re spending. Some may recommend skipping the inspection.
Whether the home inspection is worth it could depend heavily on the builder’s reputation. Speak to the neighbors and others the builder has worked with to get insights.
A Realtor’s job is never done even after the sale is complete. With new construction, you will likely need some fine-tuning with your home after you move in.
For example, you may have closed on the home with some uncompleted work. The builder may not have completed the punch list entirely. A Realtor can help with communicating with the builder’s representative.
The same would be true if, a few months in, something needs attention that is covered by the builder’s warranty.
The pros vs. cons of using a new construction real estate agent are very much lopsided. Let’s have a final review.
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