Why You Should Hire A Realtor When Buying A New Construction Home
Why You Should Hire A Realtor When Buying A New Construction Home
One of the first decisions that must be made in the home buying process is whether tobuy an existing home or build a new home. In today's market a shortage of inventory is steering many buyers towards new construction. If you decide that you would like to explore the new construction route, the next decision that needs to be made is whether or not you want a real estate agent to represent you.
Below are some of the most important reasons to hire a real estate agent when buying new construction. Read on to find out why using a real estate agent can save you time, money, and frustration when buying new construction!
Provide Representation Because It Is Important
When buying new construction many buyers believe it’s a good idea to not have a real estate agent and to use the builder representative because it will save them money. This is absolutely false. As with any real estate transaction, compensation to the buyer's agent is always paid by the seller and in this case, the seller is the builder.
What a buyer is doing by working with the builders representative is working with someone who is not representing them but instead is representing the builder. Most people do not realize the agent in the model home represents the builder. There are two parties to a transaction, the seller and the buyer. The builder (aka seller) is represented by the agent at the model home, make sure you are represented as well.
It’s important that when hiring a real estate agent to represent you in the purchase of a new construction home that you know to ask the right questions. Having an experienced real estate agent is important when buying an existing home but having a real estate agent who has experience with new construction is critical.
Some of the questions to consider asking real estate agents when buying new construction include;
Are you familiar with the new construction process?
Do you have any lenders who specialize in new construction loans?
Why do I need you to buy new construction?
How many new construction homes have you sold in the past?
Negotiate On Buyers Behalf
Buying new construction can get pretty expensive and in a hurry. Most builders will advertise their base price of their new homes and in most cases, this price is for the basic “plain Jane” home.
One of the benefits to buying new construction is the ability to make it your own. With the customization of a home comes an increase in the price. Another reason to hire a real estate agent when buying new construction is their ability to negotiate on your behalf.
Most builders will have a list of prices for upgrades and options dependent on floor plans. A real estate agent who has experience with new construction can help negotiate the prices of these upgrades and help you find communities that include upgrades in their pricing that can help save you money.
Contract Contingencies & Inspections
There are tons ofreasons why having a home inspection is importantwhen buying an existing home, but it’s also very important to have a home inspection when buying new construction. Many buyers who are purchasing new construction believe that since the home is brand new that they don’t need an inspection.
Another reason to hire a real estate agent when buying new construction is the reality that they know what inspections to recommend to a buyer. For example, if a new build has a septic system it would be advantageous and recommended to make the contract contingent on a septic inspection. The last thing that a buyer wants to have happen when buying a new home is they move into the home and there is a serious issue with the plumbing because of a faulty septic system.
This is only one example of areal estate contract contingencythat a real estate agent can suggest to a buyer when buying new construction. It’s highly recommended to perform various inspections on new construction before the closing occurs.
Make Recommendations On Improvements & Upgrades
Generally a buyer is given an allotment for things such as lighting fixtures, carpet choices, cabinetry, counter tops and other home features. Real estate professionals knowwhat home features today’s buyers are looking forin a home. One of the worst things that a buyer can do when building a home is spend lots of money on upgrades and improvements that may hurt the value of the home when the time comes to sell the home.
Another great reason to use a real estate agent when buying new construction is their ability to recommend a quality lender. Thefinancing for new build homes is much different than getting a mortgage for an existing home.
Financing for new construction is not offered by all lenders. It’s recommended that you try and utilize a local lender when buying a new build. A real estate agent who has experience with new construction will be able to give a couple recommendations to lenders who offer new construction loans and also help you work down payment programs into your purchase.
Keep The Transaction & Build On Schedule
Buying new construction is a pretty complex process. There are many moving parts and it can be easy for the transaction and/or build to get off track.
Another excellent reason to hire a real estate agent when buying new construction is the ability an experienced agent will have to keep the transaction and/or build on track. There are manyreasons why real estate closings are delayedwith existing homes and with new builds there are even more.
If you decide that you’d like to buy new construction, as you can see, there are lots of benefits to hiring an experienced real estate agent. It’s strongly recommended that you do not attempt it without representation. Having a professional working on your behalf can go a long way and save you lots of time, money, and additional stress. Are you thinking of buying a new construction home? I would love to hear what is important to you, let's talk.
Author:Ruby Arias Phone: 623-398-5575 Dated: April 9th 2018 Views: 783 About Ruby: Whether buying or selling a home, you want someone on your side that knows the local market and puts...
The partners of My Home Group specialize in both the purchase and sale of residential and commercial real estate, as well as providing property management services. We have been in business since 1996 and have a long history of providing exceptional customer service to our agents.
One of the first decisions that must be made in the home buying p
"I highly recommend both Stacia Meeker and Gilbert Jaramillo of ESTRELLA Homes & Land Sold by RE/MAX Preferred Choice. The following comments are completely unsolicited and are mine alone. My first meeting with Stacia Meeker came about through a referral from friends with whom we were visiting in the Goodyear Estrella area in AZ. At my first meeting with Stacia and looking at some properties in the area, I decided I liked her approach and would use her services as a buyer’s agent. I returned a month later ready to look seriously and buy. At the time I arrived back in Estrella, I had developed an Excel spreadsheet detailing 50+ properties selected from the daily property searches I received from Stacia and Gilbert’s office. Both Stacia and Gilbert invested nearly a full week of their time with me and during that week I was treated with consideration, respect, and was NEVER PUSHED OR PRESSURED to buy anything….. period. We did look at nearly all the 50+ homes on my spreadsheet and by week’s end, aided by some hardball negotiating with a seller on my behalf by Stacia, I had an acceptance offer on the property that I wanted in hand. (Note that I’m currently using both Stacia’s and Gilbert’s extensive contacts in the area to make the place we bought extra special for us. ?) Stacia Meeker is a very outgoing high energy person. She has a great depth of knowledge on the properties in the area, and importantly has the ability to translate this knowledge into accurate and honest assessments of the local properties for sale. She also has great connections (for example she connected me with a mortgage broker who was able to prequalify me quickly and helped to expedite the entire process). She as I mentioned earlier, is not afraid to play hardball and knows exactly when to play that hand. Gilbert Jaramillo, Stacia’s partner at this RE/MAX office, has an encyclopedic knowledge of the regional real estate and worked with us seamlessly as Stacia’s teammate in our buying efforts. Gilbert has an easy going affable nature coupled with an uncanny ability to quietly and effectively evaluate subtleties his clients express while looking at houses. He uses his insights to really help his client find the property that will genuinely appeal to him. A valuable skill, it worked really well for me and my wife. The combination of both Stacia’s and Gilbert’s talents is a huge asset to their company and made our new house happen for my wife and I. Throughout the house buying process, I received exceptional personal service with speedy responses to any and all inquiries from either Stacia or Gilbert by phone, text, or email. Our buying experience brought home to me how nice it is to work with people who care about you and truly want you to be satisfied. Thank you to you both!"