FAQ - Why Should I use a Realtor for New Construction?
by Rick Cox
on Thursday, April 23rd, 2020 at 10:34am.
With low inventory in a ‘Sellers’ Market’, Buyers are turning to new construction to design their dream home. The biggest question you might have as a buyer is ‘where do I start’? Partnering with a Realtor for new construction can be a huge advantage in not only answering your questions on New Construction but being an advocate on your behalf.
Previous Built up Experience working with Various Builders
Hiring a buyer’s agent that has experience dealing with builders and are familiar with the local community can be advantages to you, as a buyer. Our real estate team has worked with many builders across the community and can pair you with the ones that we trust and fit your style. We are also highly knowledgeable and can recommend lots, upgrades/modifications to the home, the contract and any paperwork/negotiations needed. Hiring a buyer’s agent, you will know that they always have your best interest at heart and will work with you to construct your dream home without the stress.
A Buyer’s Agent Does the Research for you
With extensive knowledge on the local area, we research and find out what developments are planned for the future and what your neighborhood will look like in the long run. Our team goes over the homeowner’s association, traffic planning, and advise you on what the future resell of your property may be. For some tips on some re-sell new construction spend, check out this post laying out some important home assets to spend your money on. When selecting a builder, having a Realtor can be an advantage. Working with many builders across the community, we can go over our client’s previous experiences and what are the strengths/weaknesses of each builder. We will also take you on a tour of selected builder’s recent craftsmanship and model homes.
Navigating the Process
When a client comes to us and is interested in building, depending on what they want to spend and the neighborhood they want to be in, we start by going over what they are looking for and set up meetings with builders that match the client’s style/interests. Historically, we have taken clients to builders that we have always had good experiences with. Our group wants to ensure you have a great experience in the home building process, as it should be exciting to put together your new custom home.
Some clients are a good match for a custom builder, and some are better fitted for a track builder. Whatever route you go, all the details will be laid out and expert advice is there through a Realtor.
Experts in Negotiation & Working through the Paperwork
Experienced Realtors work with builders quite a bit, so builders are usually willing to negotiate more with a Realtor that sells his home. This is the case because the builder is hopeful that Realtor will continue to do business with him/her by bringing more buyers and advocating for their product. Also, experienced Realtors know how builders operate and what they are usually willing to do for a buyer, we know what to negotiate of not only the price of the home, but we can negotiate upgrades and closing costs to help the buyers get more for their money.
A closing for a new construction home is different from a regular re-sell closing. Builders might offer special financing, lowered interest/extended rates, and discounted upgrades. Having the help of a Realtor to navigate this process can help you navigate possible discounts and choose a lender to keep you informed and allow for a smooth closing.
Working with a Site Agent versus a Buyers’ Agent
Builders don’t actually save you money or give you a better deal by using the site agent. The site agent actually represents the builder and if anything goes wrong, they will look out for the BUILDER’S best interest. If a site agent is not supporting a buyer on bringing their own representation, it could be a red flag on how they will accommodate the buyer’s needs throughout the building process. Be aware, that builders and their agents always represent themselves and not you as the client. When making a large purchase, having an advocate on your team is the best way to not only protect yourself, but get more out of your money.
If you are interested in a New Construction home, reach out to our team for a free no pressure consultation to listen to what you want in your next home and walk you through what that process would look like.