Why You Need a Realtor When Buying New Construction
New construction residential communities have a wow factor. Everything is shiny, new and you would be the first to live there. Often there are promotions and advertisements that entice home buyers into the model home for a tour. There’s a real estate agent on-site to answer all your questions. It can feel like a dream come true.
But here’s the catch: That on-site agent works for the builder. Not for you. Your interests are not part of the deal.
Often, the builder will require you to sign a builder’s purchase contract, which typically has clauses to protect the builder and limit the buyer’s contingencies. Also, there are usually upgrade options with new construction. For example, you could choose the standard counters, or upgrade to the high-end quartz. These options always look shiny and fulfill your “wants” list, and then suddenly your dream home now costs 5-10% more than the base price. Having a Realtor guide you through smart choices is important. We will let you know what makes sense for the type of home, the re-sale market, and which options will not give you a good return on investment (ROI).
We’ve also heard buyer’s objections about being represented in your home purchase:
“The builder said I would get a discount on the house price if I didn’t have a Realtor represent me”
If the builder is offering you a discount for being unrepresented, ask yourself “why is it in the builder’s best interest for me to unrepresented?” Having a skilled Realtor with expertise in new construction is someone you want on your side.
“I don’t want to pay the buyer’s agent commission”
Many home builders we work with offer buyer’s agent compensation. Sometimes, a builder will not offer it, and then you need to decide if the value of being represented in the home buying (and building) process is worth it to you and the investment you are making in this new home.
Purchasing a new construction home is exciting. It’s also a major investment. At Living True Home Group, we are here to guide you and provide information you need to make empowered decisions.