Do you need a realtor if you buy new construction? Definitely, YES!!!
Most buyers believe the builder’s rep will help them get a deal. However, the builder’s rep works for THE BUILDER, not you! They are employed by the builder, and their success relies on getting the best bottom line for the builder.
Representative working for YOU. Do you know most buyers pick a new home, not by the builder’s reputation, but by which one has the floor plan they like best. Buying a home is one of the largest investments you make. You should have someone working for YOU. And the best part? It’s free to you. The builders do not “discount” for not being represented. The commission is built into the sales price as an overhead marketing cost and does not affect the bottom line cost of sales for that community. If you purchase new construction without a Realtor, the builder keeps the built-in commission in his Marketing Budget.
Committed representation. A buyer’s agent represents you and owes you fiduciary duties (loyalty, accountability, confidentiality). If you purchase a new home without a buyer’s agent, who is representing you? Often times, this may be the salesperson who works at the model home and tells you where to sign on the paperwork. This is the same salesperson employed by the builder. Think about it. You want an experienced Realtor on your side. Experience isn’t expensive, it’s priceless. Your Realtor, understands the ins and outs of home purchasing, home construction processes, your resale values can work on your behalf with YOUR best interests in mind. With good representation, buyers can avoid surprises. You never know when you need a Realtor, until you need one.
Better Negotiations. Realtors can help you negotiate your best deal. Finding the right model and picking your upgrades is the fun part. Once you’re ready to sign, a Realtor can work on your behalf to negotiate everything from upgrade options to closing costs. Realtors can help you analyze your financing options and make sure you are getting the best rate for your mortgage.
Liaison between you and the Builder. Your Realtor can help you through the build process by acting as your liaison. Building a new home involves many steps, and a good Realtor can help you with things like the red-line meeting, inspectors for different phases of the build process, completing the home walk-throughs, and getting to closing on time and with no surprises.
Here’s another bonus… builders rely on their reputations within the real estate community. The home with a represented buyer is more likely to be completed on time. The Realtor is a “repeat” customer and has more leverage with the builder. The builder wants the Realtor to not only bring back future customers, but to speak well of him/her.
Also, if you have a home to sell, your Realtor can help you with timing the sale of your home so that you can transition smoothly.
Choose an experienced agent who is there for you – actively helping, keeping you informed, negotiating on your behalf, answering questions with competence and speed, and being part of the transaction from the first step inside the model home to the first step inside your own brand new home. Picking the right Realtor can make for a pleasant home building experience, and it doesn’t cost you a penny.
Gwen Wood of RE/MAX DFW Associates has a degree in Construction, and her true passion is building homes. Let Gwen help you with your new home experience… from the first day of your search to the day you step through the front door of your new home, and beyond.