Do you need a real estate agent to buy a new home from a builder? Legally, no. But here’s what you might be missing out on if you don’t and I share this information because of the experience I had when I purchased my first newly built home without an Agent.
Legally, you do not need to hire an agent to represent you when you buy a new home from a builder, but if you don’t, you might be missing out on some tangible benefits that impact your wallet and how much you get for your money.
There are many reasons why an agent is a sound investment during the purchase process with a builder. While some of them can be quite complex (and go beyond the scope of this blog post), here are a few highlights:
Market Value Compared to Purchase Price: How much money are you going to be able to come out of pocket for your down payment? If you don’t want a nasty surprise when it comes to disparities between your agreed upon purchase price and the actual market value of the home, you’ll want an agent with access to information which will help you accurately assess the true value of that brand new home.
Negotiation Power: Real estate agents are professional negotiators, and often an agent can get more from a builder than you would on your own. While some of this might be related to purchase price, other perks may include property or home upgrades.
Financing: It’s probably no surprise that your builder will have preferred financing partners to work with. Many of those “partners” pay good money for the opportunity to handle your loan. But is it the best loan at the best rate? An agent can be both a sounding board for financing terms and a source for trusted alternatives.
Contract Expertise: While your real estate agent isn’t an attorney, they know a great deal about the ins-and-outs of property contracts. This includes builder’s contracts, which may have provisions that put you in dicey territory should something unforeseen happen. Protect yourself with an agent.
Home Inspections: Many buyers think because it’s a new house everything works and may feel it's okay to wave the home inspection. A home inspection could identify any immediate or potential problems. Ask your agent for a list of qualified home inspectors.
These five reasons are a good place to start, but there are plenty more. The bottom line is: The builder will have their own system in place to maximize their profit and minimize their costs. Shouldn’t you?
I’m more than happy to help you buy from a builder. I work with K. Hovnanian, Toll Brothers, Craftstar, D.H Horton, Lennar, Mid-Atlantic Builders, Ryan, Ryland, and many others in Maryland and the District of Columbia.
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