Buying a home from the Builder and why you should have your Realtor® - By Deepa Kumar
Buying a brand new home from a Builder can be exciting. You get to choose your lot, the floor plan, the exterior design, the interior finishes and any upgrades. But it’s a common misconception when you’re buying a new constructed home that you don’t need to work with a Realtor®. However, that’s not necessarily true. Here are some good reasons why it makes sense to have a real estate agent represent you when building your new home.
1. The sales agent works for the builder. When you walk into a model home, the friendly salesperson who greets you is employed by the builder. “That is not necessarily a bad thing, but in the end, they’re trying to generate sales for their boss – the builder.” Therefore, they may not work to your advantage. Just like buying a home from the listing agent who has listed the property, they have the fiduciary duty towards the seller and not the buyer even thought they say that…. that is why dual agency is banned in lot of states.
2. Your real estate agent is your advocate. Your Realtor is obligated to work toward your best interest. “Working with a Realtor, gives the client another advocate to help protect their interests,” says Miles, who has 11 years of experience as an agent. “The Realtor is going to make sure the buyer knows what their rights are, so they don’t feel like they have to be forced into something.”And they can give you perspective on things that may affect future resale as well.”
3. Hiring a Realtor comes at no cost to you. When working with builders, there is no additional cost for working with a Realtor. The builder will pay your agent’s sales commission. Plus Realtor® will make sure that once you sign the contract and pay the deposit that builder don’t cut corner to finish the job…… very important!
4. An agent can help you choose the right builder and neighborhood. “An experienced realtor can show you what the neighborhood values are currently for resale, which will help give you perspective when it comes to building your house, so you’re not necessarily over-building for the neighborhood.
5. A Realtor can help you make the right choices for your budget. “New construction can be overwhelming, because there are an endless number of choices to select,” says Miles. “It is really easy to want to buy a million dollar house, but you only have a $600,000 budget. A good Realtor can help guide some of your decisions within your budget. And they can help make sure that your budget is in line with what you’re trying to accomplish.”
6. An agent can help with lot, floor plan and upgrade selections. A Realtor® can help guide you by making recommendations on items that appeal to a larger number of future buyers, if you think you may sell your property in the future, says Miles. For example, the lot you may be thinking about buying may save you some money upfront, but it may not be the best lot selection when it comes to resale value.
Also, when working within your budget, an agent can guide you on what items are better to install now versus items that are easier to improve upon later.
Additionally, “as you’re walking through the model home, most Realtors will ask the sales agent to point what the base price of the home is, what upgrades are included in the model home, and what the current price of the model is with the upgrades,” says Miles. “It helps you put what you’re looking at into perspective and what the cost truly is.”