June 19, 2019 | Michele Langley
Why a Realtor is important when buying a New Construction Home
Home buyers often think that buying a new construction him is easier than buying a resale home, however, it can often be more complicated. The Modern Living Home Team consist or real estate agents with years of experience helping buyers purchase their new construction home. On-site agents are typically not licensed and work for the builder. Having a Realtor who represents your best interest ensures that items and repairs are not overlooked prior to closing on a new construction home.
Unrepresented buyers often think if they do not have buyer’s representation, the home builder will reduce the sales price of the home. This is not true because builders rarely reduce list price as it will impact the future value of community home sales. The buyer’s agent commission is paid by the seller/builder and already advertised in the list price. Without representation, the builder can keep that money as additional profit. So, remember, you have a legal right to buyers’ representation and since it’s FREE to you, why not take advantage of having someone on your side?
Here are a list of 10 ways we help you navigate the new construction home buying process:
1. Review the Contract:
New construction builders typically use their own contract which is slanted to favor the builder and includes lengthy, attorney-written information. It is very important that you understand the details in the contract. We will review the document and highlight important information to make sure you informed prior to purchasing.
2. Help you understand the cost of upgrades:
Home buyers often review a model-home and think “Wow my house is going to look like this!” But just because the model might be the same floor plan does not mean it will have the same upgrades – SO WHAT YOU SEE IS NOT ALWAYS WHAT YOU GET.
3. Help you in the selection process:
When selecting countertops, cabinets, light fixtures and many other upgrades, it is important to have a real estate agent who keep you grounded. Often the prices for many items are higher than if purchased later and will not help the home appraise for the additional cost of these items. We take the time to help you with your selections and ensure that you understand the impact. We LOVE picking out colors with our clients, but more importantly, we LOVE ensuring they are getting an item of value either personally or for resale purposes in the future.
4. Negotiate for YOU.
Because we represent you, we want to ensure you get items that are negotiable that you might not be aware. Even a home buyer who has strong negotiation skills may not think of items to add to the home sale. Beyond that a Realtor takes out the emotion involved which often impacts a home buyers ability to succeed in negotiations. Again this is why Buyers Representation is so important as an on-site agent is not going to suggest you ask for something that a builder has not advertised.
5. Review Paperwork and Document!
We have heard buyers say “but the builder told me he would do X.” Without having guarantees or concessions in writing, the builder is not required to deliver, and a home buyer has no recourse. This is why we are with you at every discussion and document what was agreed upon.
6. Inspections:
With your approval, we will schedule pre-dry wall and final home inspections. We will attend all electrical and final walk through to help you identify any potential issues and items that should be addressed prior to closing. Do you think an on-site agent is going to tell their boss they did a bad job painting a wall and need to repaint? Pre-dry wall inspections, whenever possible, are so important because once the dry wall goes up, you can see mistakes in building.
7. Financing:
Often builders will offer financing or closing cost with a preferred lender. But is that really the best deal for you? The Modern Living Home Team has partnered with reputable lenders who can help you compare if you are actually getting a good deal or not. Just because you are offered $5000 in closing cost does not mean you are paying less closing cost.
8. Anticipate Quality of Construction:
As local real estate agents who are familiar with many builders in Wake and Johnston County, we can help you understand the reputation of the community builder or connect you with a custom home builder.
9. Closing:
As your realtors, we are keeping watch on the items that need to be finished prior to closing and ensure the builder is on-time with planned dates. Our goal is to ensure that you are informed of potential delays but also proactively try to avoid any that might occur.
10. Representation:
Just because it is worth repeating. Hiring an agent to represent you cost you Nothing! Remember, the builder’s on-site sales agent represents the builder and does not have your best interest in mind. As your realtor, we always have your best interest in mind and will promote YOUR NEEDS and YOUR INTERESTS. Our goal is ensure you get the most value and make your home buying experience stress free.
We would love to be your new construction home buying advocate, feel free to contact the Modern Living Home Team today if you are thinking of buying new construction.
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