I’m Buying New Construction, Should I Use a Realtor?

I’m Buying New Construction, Should I Use a Realtor?

  The short answer is yes and here are the main reasons why. Representation – The Real Estate Representative in the Builder’s sales office REPRESENTS  the Builder’s best interest NOT yours.  A Realtor  working for YOU represents YOUR  interests and advocates on YOUR behalf. What You See is NOT Always  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. Granite countertops, crown molding, upgraded appliances, and a screened porch are usually upgrades and they add up.  A Realtor representing YOUR interests will help make sure you ARE aware of what’s included in the base price and what is extra. Agent Fees – /Buyers do not pay the real estate agent fees, the seller or builder does.  Builders view commissions to real estate agents as part of their cost of doing business.  In fact, they rely on outside agents to bring clients to them.  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 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./ Negotiations – You may be a great negotiator, however, a Realtor will look at the transaction from a dollars and sense perspective without being swayed by emotions and will also know what is and what is not negotiable and as you can imagine it varies by Builder.  For example, did you know many Builders will cover some closing costs? Include a warranty? Include free upgrades? Builders are far more likely to negotiate on fees or upgrades than they are on price. Your Realtor 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./  Your Realtor will ensure all the terms agreed upon are included in the contract. Inspections – You may want to consider a home inspection when buying new construction. /A builder doesn’t necessarily want to inspect itself and if they did would you trust they have your best interest in mind?/ A Realtor will have relationships with multiple independent inspectors who will look out for your best interest and  will  review the inspector’s report to identify potential areas of negotiation, corrections, repairs or replacements with the Builder. Financing – When you are buying new construction, the Builder usually offers financing, but is it the best financing available? Even a small increase in the interest rate could have a significant impact on your monthly payment or the total amount you pay for the home.  A Realtor working for your best interest will be able to connect you with reputable lenders so you can compare rates. Contract – How familiar are you with a real estate contract?  Do you know what to look for to make sure you are receiving all the benefits you’re supposed to receive? Are you aware of any hidden fees or community fees?  A Realtor is an expert in the industry who is there to provide guidance throughout a real estate transaction. They review contracts regularly and know what to look for to ensure everything is correct.  Additionally, real estate contracts in Georgia are different from New York , that are different from Florida or California. Quality of Construction – How familiar are you with the Builder? What’s their reputation? What is the quality of their construction? There are hundreds of builders , an experienced Realtor will be familiar with all the local major builders and their quality of work.  They’ll also be able to provide recommendations and references for custom home builders to ensure you are connecting with a reputable Builder. REGISTER – If you want to be sure you have someone looking out for your best interest, tell the builder on your very first visit that you are already working with a Realtor. If you do not communicate this information upfront when you are buying new construction, your Realtor won’t be able to represent you and watch out for your best 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. Are you thinking of buying new construction? There are lots of new construction homes going up, whether it will be your first home or your dream home, make sure you are represented, use a Realtor!