


I welcome the opportunity to guide you through the purchase and construction process of your new home. I have been selling real estate on a full-time basis for nine years and help buyers in several ways during new construction projects. A buyer's agent can assist you with several things such as:
-- Don't overpay for your new home. A Realtor can provide valuable information so that you know what comparative properties are selling for in new home communities. This way you do not overpay for a property.
-- Have a realtor on your side through negotiations. Realtors look out for your best interests, as the purchase is negotiated. The model home salesperson is working for the builder, not you - the salesperson is looking out for the best interest of the builder. Their main goal is to sell you a home at a price that maximizes profit for the company. A buyer's agent works for YOU. This means they are obligated to help you find the best home at the best price. A buyer's agent will listen to your needs and help match you with a property that suits you. When you go into the new home site unrepresented, you will have no one representing you in the event that things don't go as you would like. Are the plumbing & electrical locations where you want them to be, will the builder allow you to have inspections by someone of your choice at various stages of the construction process? Do you understand the builders contract/addendums that you are signing? Many times they are pro-builder. What happens in the event of construction delays? How will you handle the sale of your current home? What are the covenants & restrictions & can you live with them? Can you visit the site whenever you want to ensure that construction is going along as it should be? It is best to have an advocate on YOUR SIDE when issues arise.
--A Realtor's expertise is free to you - The builder pays a real estate agent a 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 if they do not use an agent. This is not true. In fact, builders charge the same price for a house regardless of whether or not you use an agent. The agent's commission comes out of the builder's marketing fund and does not affect your purchase price.
--Inspections-- A buyer's agent can guide you through the multi-stage process of "independant" home inspections during various points of construction and assist you with issues that show up on the inspection reports.
Many people ask: "Why does a newly constructed home need an inspection? Isn't a newly constructed home perfect and safe?" Some people assume that the builder and contractors are overseen by state or local government officials and that the local town or city building inspector checks the house out. This is true to some degree, however, few if any municipal inspectors spend anywhere near enough time in the home to fully check it out. Further, there could be problems with the home that are not necessarily code violations, yet have serious consequences for the new home owner.
As a buyer of a newly constructed home, ensuring an inspection clause in the contract is the first line of defense. The exterior wall and roof frame inspection is followed by the open wall or pre-drywall/pre-insulation inspection and finally the final walk through inspection.
-- Builder's mortgage rates and incentives may or may not be your best option for financing. You need to make sure you have the best loan for your needs. Many builders will offer you incentives for using their lender. Will their lender be the best loan for you or should you call another lender to see if there is a better option for you? What happens to your interest rate should there be a construction delay? Does your contract give the builder the right to raise the price of the home before it is completed? Can you lock in your interest rate for 250 days and have the mortgage company cover the cost?
-- There's so much more involved than picking out a neighborhood, the lot, and the floor plan. Although there are buyers out there who have gone into a model home site and started the process directly with the builder's representative, things are only good as they seem to be at that particular moment... But please be aware that when problems and technicalities arise, you want to make sure that you have a knowledgeable buyers agent on your side and is able to deal with the unexpected things that can go wrong while building your new home.
Remember, the end result is a wonderful new home. A few less headaches and reduced stress during the process is worth having an advocate on your side. To make the process as smooth as possible during construction, and to look out for your best interests, is the ultimate goal of your buyers agent, and that's priceless!
Cassie,
Very good information, thank you for posting and sharing.
-David