Why You Shouldn't Buy New Construction Homes Without a Real Estate Agent
Don't make the mistake of thinking you don't need a real estate agent when buying new construction homes. Even though you can speak with the sales representative at the model home, there are several important reasons why you should have your own agent.
First and foremost, the sales representative is there to represent the builder's interests, not yours. They want to sell at the highest price with the most options, and they want to rush the contract process. As a buyer, you want the lowest price, sensible options at the best price, and a contract that protects you. By relying on the sales representative, your interests will not be adequately represented. That's why it's crucial to have your own agent.
Builders already expect that you will have your own agent, so they have already factored the commission into the pricing of their models. This means that you don't have to pay your agent anything extra, and it also means that the price won't be lowered if you don't have someone representing you. Not having an agent doesn't save you anything, and it certainly doesn't benefit you in any way.
Builders create their own contracts, and they naturally write them in their favor. They want to protect their own interests. Having an agent to explain the details, answer questions, and guide you to an attorney if needed can prevent you from getting stuck in a contract that doesn't favor your interests.
A real estate agent can also help you determine which upgrades make the most financial sense. They can advise you on whether it's more cost-effective to complete certain construction details after you move in. This knowledge can save you money in the long run.
Additionally, an agent who is familiar with the sales representative and current deals can work in your favor. Builders often offer discounts, bonuses, or free upgrades on listings that have been on the market for a while. Having an agent who is on top of these deals can ensure you don't miss out on any special offers.
Builders often try to push you towards using a specific loan company that they are affiliated with. They may offer incentives towards your closing costs in exchange for using their preferred lender. However, your agent can help you find other loan packages that could potentially save you much more money in the long term.
Contrary to popular belief, buying a new home doesn't guarantee that you won't encounter construction or repair issues. Builders may still cut corners to save money. That's why it's essential to have an agent who will schedule a pre-drywall inspection to uncover any hidden problems before the walls go up. Your agent will also ensure that you understand the builder's warranty and how to address any issues after the construction is completed.
Considering a Realtor for Buying New Construction?
When it comes to purchasing new construction from a builder, many people wonder if they need a Realtor. The answer is a resounding yes, and here's why:
Representation: The sales representative in the builder's office works in the builder's best interest, not yours. On the other hand, an independent real estate agent will advocate for your interests, providing guidance and ensuring you get the most value for your money.
Know What You're Getting: That stunning model home you toured may not be the same as the base price advertised. Upgrades such as granite countertops, crown molding, and high-end appliances can significantly increase the price. A Realtor representing you will help you differentiate what's included in the base price and what will cost extra.
No Extra Cost: Contrary to popular belief, buyers do not pay the real estate agent fees - the seller or builder covers them. Builders even rely on outside agents to bring in clients, so there's no downside for you in having a Realtor represent you.
Skilled Negotiation: Even if you consider yourself a great negotiator, having an agent on your side can be incredibly advantageous. Without an emotional connection, a Realtor can negotiate from a practical standpoint and knows what's negotiable with each specific builder, such as fees or upgrades.
Get It in Writing: Any agreements or guarantees made by the builder should be in writing. Having a Realtor ensures that everything you've agreed upon, including upgrades, fees, and timelines, is incorporated into the contract, protecting you from any potential issues.
Inspections and Financing: A good real estate agent can recommend independent inspectors to assess the construction quality, and they can also connect you with reputable lenders to explore better financing options.
Expert Guidance: Real estate contracts can be complex, and there may be hidden fees or details you're unaware of. A Realtor is well-versed in these contracts and can guide you throughout the transaction, ensuring you receive all the benefits and answering any questions you may have.
Don't navigate the world of new construction alone. A Realtor can provide invaluable guidance and ensure you make the most informed decisions in your purchase.
Real Estate Agent
FB: Nora Lopez Real Estate
JACOBS & CO. REAL ESTATE, LLC.
12923 Fitzwater Dr. Nokesville, VA 20155
(703) 594-3800 | jacobsandco.com