BUYING NEW CONSTRUCTION & WHY YOU NEED AN AGENT
So you’re thinking you may want to build a home – congratulations! You tour a few models and speak with the sales agent. The process seems so easy and stream-lined, and time is of the essence to sign and reserve your lot. So why do you need an agent when the process is easier than a traditional resale purchase?
1. You Need an Advcoate: The Sales Associate isn’t working for you, they are working for the Builder. They are friendly, helpful and have a handle on the process. So why do you need your own agent? The Sales Associate is representing the Builder and are not able to give you advice. Their spin is a positive spin, opinion, and always benefit of the Builder (or they could lose their jobs!) Hire someone whose sole purpose is to represent your interests, whether or not that means proceeding with that new construction home you’ve fallen in love with.
2. You Don’t Know What You Don’t Know: A skilled agent can navigate the contract and process and negotiate should something go wrong. Unless you’re an attorney, Contracts may be foreign to you. A skilled agent knows what questions to ask, especially when those items aren’t being discussed at an initial consultation. If there is a blip in the transaction, your agent will bring it to your attention and fight for you.
3. Forecasting Resale: A skilled agent is looking in the future of resale and can help with lots, layouts and finishes that would benefit you most down the road. A sales representative isn’t going to steer you to get the most bang for your buck or even coach you on what buyers are looking for in resale. An agent can coach you on prime locations, layouts, what projects you can do yourself, have recommendations for contractors and other tradespeople that can save you money in the long run.
4. You’re Not Saving Money to Do it Solo: You aren’t saving money by having no representation for yourself. Most national builders have a separate commission fund for a Buyer’s agent, so if you don’t use an agent you don’t get a credit of that commission. When a buyer does not use a buyer’s agent, the builder either pays their sales representative a higher commission or pockets the savings.
5. During and After Sale Assistance: Your agent is your advocate during and after the sale. An agent has knowledge of and can leverage contracts, real estate law and the real estate community when things go awry with the builder. An agent also has great resources for you if you need help with projects after the sale.
Real examples of how our team has successfully assisted Buyers in purchasing a new construction home:
1. Successfully negotiating better timelines and contract terms/conditions.
2. Gaining extensions for selling current home and closing dates.
3. Negotiating builder paid closing costs, free appliances, repairs, concessions, longer home warranties, moving expenses, cleaners and other items of value when hiccups arose in the process.
4. Stopped Builder from bullying clients into closing before projects were completed. It is sadly common the Builder will insist you sign the paperwork and they will take care of finishing items after closing. The ball is in your court because their biggest motivation at that late of a stage is to get paid and move on. Plus, it is much more difficult to get the builder to do repairs after you give them the money to close.
5. Review closing sheets to ensure the net sheets and costs to close were prorated and divided appropriately.
6. Able to negotiate changes to finishes above and beyond what selections were available to the Buyers at the showroom.
Who Do You Call?
The key to new construction is to get your agent involved from the very first visit. If you think you want to tour new construction, call Jocelyn at 303-564-7439 before visiting the sales office. She can talk through the process at a high level, make you aware of other builder/location options available, review the home purchase process, and get you set up for success from the very beginning.
If you have a home to sell the builder may also recommend an agent to help you with your home sale. We have a track record of netting the most on the sale in the quickest time period with the least amount of hassle. If you use the builder’s agent you will most likely net less money on the sale and be working with a complete stranger. There are also things to consider in terms of market timing, pricing strategy, marketing techniques, negotiating throughout the sale process, and getting the highest return on your investment when preparing the home for sale. So take the first step by calling Jeremy to go over your sale at 303-667-0043.