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Why Should I Use an Agent to Buy in a New Home Development - CA 2013
Even though a home purchase makes any home "new" to the new owner, the term "New Home" here is used to mean that the home is newly built or in the stages of being built, and the buyer buys based on the model homes and/or floor plans. The builder has an in-house agent whose office is in the model, and that agent can represent the buyer as a "dual agent" here in California. However, now that we're in a hot seller's market in 2013 in the Inland Empire areas of Temecula, Murrieta, Lake Elsinore, Hemet, San Jacinto, Oceanside, Menifee, Wildomar, Winchester, and north San Diego, as the buyer, should you quickly jump in and have the seller's agent "draw up the papers" to buy in a new home development without having an agent represent you? The answer is, No!
Why should you not let the New Home builder's sales agent just draw up the papers? There are several answers, based on Price, Representation, Amenities and, finally, Money (it's both what you think, and also what you didn't realize).
1. Price. New home builders develop their pricing by building in the data that about 60% of buyers will walk in their door without an agent representing them. So the builder sets the prices across the various lots and models after taking into account that only 40 percent of buyers will have an agent that needs to be paid. Now notice: the builders "set the prices." They do not set an asking price and then plan to negotiate it. If you are an unrepresented buyer, you still pay that higher price for your New Home that the represented buyer would pay. So you'll pay just as much for the New Home, even if you ask over and over to get some of the portion that would have gone to pay a real estate commission. Why? Because you fell into the percentage of buyers who simply are unrepresented by an agent. And it doesn't count that you understand that New Home prices factor in real estate commissions. You will pay the same purchase price for the home a
2. Representation: The represented buyer will get the advice and expertise of a real estate agent. A real estate agent has walked through many more homes than you have, has analyzed many more home contracts, and has negotiated through many more situations than the buyer. Did you get to the end of the buying process to find that the builder had put in wheel-chair ramps when they shouldn't have, and you don't want them? We've dealt with that, ending up with very happy buyers.
3. Amenities: In California, usually the builder has set the price and the amenities' prices and there is little room for bargaining. However, the buyer's agent occasionally can negotiate better incentives for their client. The broker, Frank, at Sand to Sea Properties, and I also have experience and success in doing this.
4. Money: The represented buyer will get their buyer's agent paid. We find that many buyers do not realize that their agent has committed a lot of time and work to them, and then the buyer gets frustrated with the resale market and heads alone to a New Home sales office, the buyer is cutting off their agent from getting paid for all that work. We just had this happen, but our clients were very experienced and made sure the sales office would compensate their buyer's agent (thank you, thank you, thank you!). Last, if your agent is like us, your agent will probably be quite generous with a home-warming gift for keeping them on board... Remember, that's a bonus because you will have paid the same for the house whether or not you get an agent to represent you.
Here are some of the new home builders, neighborhoods and cities in which we can and have helped clients buy new homes:
Carlsbad: Sycamore @ the Foothills, Viridian @ La Costa Greens, La Costa Townhomes, Vista Del Mar.
Lake Elsinore: Cypress @ Canyon Hills, LivingSmart @ Canyon Hills, Hillside @ Canyon Hills, Pinnacle @ Alberhill Ranch, and Encore @ Cambria Hills.
Menifee: Summerhouse @ the Lakes, Cottonwood, Waterford @ Heritage Lake, Parkside II, Sycamore @ Hidden Hills, Cimarron @ Audie Murphy, and Laredo @ Audie Murphy.
Murrieta: Paseos Condos, Fox Hollow and Twinbrook @ Crown Valley, Palom, Alcante, Montelena, Altura and Iris @ Spencer's Crossing, and Roripaugh Ranch.
Oceanside: North River Townhomes, The Greens and Saybrook @ Arrowood.
San Diego areas -- Sorrento Terrace Condos.
San Jacinto: Edgewood @ the Cove.
Temecula: Reserve @ Paseo Del Sol, Vintage and Villas and Estates @ Morgan Hill, Emery II @ Harveston, and Belvista Condos.
Winchester: Meritage Homes's Sweet Ranch.
Wildomar: Andalusia and Rancho Vista.
These are some of the builders in Southern California and a lot of the Inland Empire. If there is a new home builder you're considering and would like to be represented, please call Frank at 951-326-7330 or call me at 951-704-4559.
"May your home always be too small ... to hold all your friends!"
CA Dept of Real Estate, Real Estate Broker License #01379811;
NMLS Identifer #331744
REAL ESTATE: www.SandToSeaProperties.com. Covering northern San Diego, Oceanside, Temecula, Murrieta, Riverside County and desert areas of Yucca Valley, Joshua Tree and Twentynine Palms, CA.
LOANS: PRW Lending, Inc. Call direct 951-704-4559, or email me at firstname.lastname@example.org
Information is deemed reliable but is not guaranteed. Information is general and may not address your particular situation. Do not rely solely on this or any information you find on the internet. You should consult relevant professionals directly about your real estate, financial, etc., situation.
Disclaimer: ActiveRain Corp. does not necessarily endorse the real estate agents, loan officers and brokers listed on this site. These real estate profiles, blogs and blog entries are provided here as a courtesy to our visitors to help them make an informed decision when buying or selling a house. ActiveRain Corp. takes no responsibility for the content in these profiles, that are written by the members of this community.