8 Reasons You Need A Realtor When Buying From A Builder:
These days it's very convenient to stop by a builder and start shopping for a newly built home. After all, they have a friendly sales person there, ice cold bottled water and homes that are so well decorated and welcoming. But in reality, there are a myriad of reasons to have your own representation when considering such a large, long-term purchase.
1) Think that friendly builder sales rep is there to represent you? Think Again. Their job is to sell a house and maximize profit for the builder, not to look out for your interests. Having an agent whose sole responsibility is to assess the process to your benefit can make all the difference.
2) A professional agent has substantial knowledge and expertise - Realtors spend hours every day studying properties for sale, monitoring trends and looking for great deals. They are often experts in certain neighborhoods or cities and even with particular builders. They will typically know more information about the area than you can possibly glean with a few weeks of looking online.
3) A Realtor's expertise is free to you - The builder pays a real estate agent 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. This is not true. In fact, builders charge the same price for a house regardless of whether or not you use an agent and sometimes just give the other half of the agent commission to the sales rep! The agent's commission comes out of the builder's bottom line and in no way affects your purchase price.
4) An agent can help save you money - Purchasing a new construction home from the developer without the use of an agent could actually cost you more money. Because an experienced buyer's agent is so knowledgeable about the construction process, they know when and where to find the best deals. Furthermore, they have access to information that shows comparable sales so they will be certain you do not overpay for a home. For example, did you know that a builder is more likely to offer an incentive at the end of the month? Also, builders are more likely to negotiate with you if you purchase an already finished 'spec' home.
5) Why limit yourself to new construction - Most communities that are selling new construction homes also have pre-owned homes for sale as well. The sales rep working for the builder can only show you the new ones in his neighborhood. Why limit yourself to just those? The resale market often has more choices at better prices because all kinds of people are in all kinds of situations. This means there are motivated sellers-something you won't usually find at a builder. Some buyers might even prefer resale homes because they already have window treatments, mature landscaping and the peace and quiet not found in a neighborhood under construction.
6) Real estate agents are professional negotiators - Real estate agents know the art of negotiating the best deal. Who is likely to negotiate the better deal, you or someone who negotiates deals every day? Even when builders say "we do not negotiate" there is often some wiggle room. A professional buyer's agent knows how to find the builder's bottom line. This crucial knowledge can likely help you save thousands of dollars on the purchase of a new construction home.
7) Buyer's agents will help you understand the contract - When it comes to 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 to have someone there (besides the builder's rep) to help you understand the contract and let you know what you are signing.
8) Have to sell your house before you buy? The sales rep can't do anything to help you here. Your buyer's agent is a licensed realtor who can help you on both sides of the transaction, acting like a one-stop-shop for your real-estate needs.
If you're looking to buy, sell, invest, or simply want advice, contact The New House Guy and let Scot help you through the entire process or take a moment to fill out the form below and we will assist you in finding your dream home.