Question: Do I need a buyers’ agent when building a new construction home?
Answer: When building a new construction home, having someone on your side is always a good idea.
When you buy a new construction home, you’ll be entering a business transaction with someone who has done this thousands of times before (advantage builder), the sales agents at the community are employees of the builder (advantage builder), they’ll undoubtedly insist (or at least strongly influence) you to use their lender (advantage builder).
Buying a home is a business transaction first and foremost and you should have someone on your side to represent you and only you.
A real estate agent has a legal obligation to act in the best interest of his or her client . . .that would be YOU, not the builder. The salesman is working for the builder, not you – Guess what, the salesman is looking out for the best interest of their company, not you.
As an agent, I can save you money by working with the builder to get you upgrades included in the price of your home.
Real Estate agents know the art of negotiating the best deal. Even when a builder says, “we do not negotiate,” there is often room to wiggle. A professional buyer’s agent knows how to find the builder’s “bottom line.” Your agent will have an understanding of where there is room for a price reduction which can save you money on your new construction purchase.
There are approximately 100 plus selections a buyer has to chooses from on a newly constructed home, from the doors to finishes to finishing basement etc. There are costs involved in all these choices and all these need to be negotiated.
Many buyers don’t realize what is standard in a new home and what are optional/additional costs that can add $30,000-$90,000 to the sales price.
When it comes time to sign the contract, a buyer’s agent will help you understand the builder’s contract. Some contracts are over 50 pages long. It is important you have someone there (besides the builder’s salesman) to help you understand the contract and let you know what you are signing.
A Realtor’s expertise is free to you – The builder pays a real estate agent a commission for representing the buyers. Many buyers mistakenly believe they will get a better deal if they do not use a buyer’s agent. They assume that since a builder has to pay the agent a commission, they would be willing to pass those savings on to the buyer if they do not use an agent. This is not true. In fact, builders charge the same price for a house regardless of whether or not you use an agent. The agent’s commission comes out of the builder’s bottom line and in no way affects your purchase price.
All fees are paid by the seller, so why not take advantage of a seasoned professional who will work as your exclusive advocate and help you with advice and insight during all phases of the new construction process, including contracts, construction, walkthroughs, when to schedule inspections and closing.