This is a very important topic. Many folks don’t know that Realtors have a big part to play in the new construction segment of real estate. It may appear to be super easy and convenient to buy a new construction home without your own representation, but there are some fairly significant points to consider, for the new home buyer!
So, why is it a great idea to use a Realtor when buying a new home?
- The on-site agent at the new home communities works for the SELLER… not for you! They don’t make that apparent though, when you walk in. They are glad to perform, what is referred to as “dual representation”, where they represent the seller and you in the home purchase transaction. One important reason why YOU should “Realtor-up” with your own agent, and your own representation. It’s important to visit the new home community with your agent on your first visit to the community, too, or else the home builder won’t allow you to have your own representation.
- You don’t pay anything to have your own representation! Your agent’s fee comes directly from the homebuilder. Seriously! The homebuilder wants Realtors to work with homebuyers for their new homes, and the Realtor fees are already built in to their business models.
- Your Realtor negotiates for YOU. Your professional Realtor understands the new home market; it is their job. They understand the “wiggle room” that new homebuilders typically have, built in to their pricing structures. Your Realtor can usually succeed in negotiating things like additional upgrades, reduced lot premiums, and many times all of your closing costs covered!
- Your Realtor knows the new home inventory, which makes your home search infinitely easier, more efficient, and smoother. Part of a good agent’s job is to preview new homes and know what types of homes/floor plans, which which features, are available where. And they have access to databases for ease of searching, which consumers do not have access to. This is far better than you, the homebuyer, just driving around, following signs and balloons, not knowing if you’ll stumble upon the perfect home, with the right price, and the best features! Furthermore, professional Realtors have relationships with builder representatives who can further assist us in making the process seamless for YOU.
- Your Realtor can help with financing options. Although your professional Realtor is not a lender, part of her/his job is to assist you in your search for the best mortgage for your new home purchase. The on-site new home sales agent will encourage you to speak with (and use) their preferred/in-house mortgage lender, which, oftentimes, is owned by the builder itself. Conflict of interest? Maybe! There are many pieces to the puzzle of financing a home, and especially a new construction home. All your representative to work for YOU during the decision-making process of selecting the right mortgage with the right terms!
We’re always open to discussing this topic and more. Thanks for reading, and we hope that you’re a little more informed now, for the journey of buying your new construction home!