Special offer

Buyer Mistake: Not Using a Realtor when Buying a New Construction Home

By
Real Estate Broker/Owner with Waves Realty BK3246853

I receive many questions, often from relocation buyers from other areas of the U.S. (or around the world) about  new construction homes. One of the main questions is...Why do I need representation when purchasing new construction?  I do understand why people ask this question. They are wondering what value a quality Realtor will have during the new home purchasing process.

Building a new home, or buying a new construction inventory home (a new construction home that is at or near completion) can be very rewarding...but for anyone who has ever gone through the process, it can be very confusing and frustrating. I understand that clients do not buy or build homes every day, and they do not generally understand the changes in process and building codes that the new construction builder will follow. Buyers tend to get very frustrated with over-runs, additional upgrade charges, and mistakes that happen along the way.

About 15% of the buyers I represent choose to go with new construction homes. Some build from dirt, some buy a home in some stage of completion, and some will buy a new home that is finished and waiting on its first family to move in! Regardless of the stage the home is in, As a Realtor I always have a considerable amount of work to do!

 1. When building from dirt, I need to make sure the client selects a lot that will work best for their family...while also getting them the most potential return on investment when they do decide to sell. The floorplan they choose also needs to work well on the lot they chose. I need to make sure the lot and house they chose will not be a negative in the neighborhood (like the largest home in the neighborhood, or one that may back to future commercial pad sites). When building from dirt I suggest a phased inspection that has the buyers chosen inspector coming back at different phases of the building process to make sure the builder is not cutting corners or making mistakes.

2. When a home is under construction, a buyer may have limited options, but we may be in a position to choose flooring, counter tops, paint color, upgrades like cat-5 wiring, and outside upgrades like an outdoor kitchen. Should you use gas or electric in the particular neighborhood? Does this neighborhood support granite and wood floors...or should you stay with less expensive alternatives. As an expert in resale I can help direct you to the best products for maximum investment.

3. When a home is finished and just waiting on a new family, I need to go through the process of home delivery. We should have already determined that the lot is acceptable for future resale, the interior and exterior upgrades level is acceptable, and the builder is reputable based on past experience. I now need to go through the contract negotiations (my clients usually find out I can save them some money here!) the walk through process (usually first and second walk through), and the inspection process ( I strongly recommend an independent inspection to my buyers...I know the builder will say they pay for independent inspections...but I often find more issues with new construction than resale homes).

4. No matter how the process started it always comes to the same conclusion...signing the final papers and becoming a resident of one of our fine areas or subdivisions. I will always attend the closing, go over the closing statement with you (this is the statement that gives you a breakdown of all charges and what you...and the builder are paying), and help with any final details.

Remember during the purchase of a new home, the builder sales person works for the builder, the finance person works for the bank, the insurance person works for the insurance company, the only entity in the transaction who legally owes allegiance to you...and only you...is your single agent Realtor!My agenda is to represent you and I take that very seriously!

Posted by

 

Jeffrey DiMuria

Waves Realty
Broker/Owner
2018 Melbourne Ct, suite 206
Melbourne, FL 32901

Phone: 321.223.6253         

e-mail:  Jeff@WavesRealtyFL.com 

Comments (8)

Joan Cox
House to Home, Inc. - Denver Real Estate - 720-231-6373 - Denver, CO
Denver Real Estate - Selling One Home at a Time

Jeff, EXCELLENT post, and so many buyers do believe they should do this alone, and they don't have to! 

Mar 16, 2018 01:15 PM
Debe Maxwell, CRS
Savvy + Company (704) 491-3310 - Charlotte, NC
The RIGHT CHARLOTTE REALTOR!

Most buyers of new construction homes don't realize that the builderis working in their own best interest not the buyers. I'm amazed at how they allow themselves to be taken advantage of.

Mar 16, 2018 05:50 PM
Georgie Hunter R(S) 58089
Hawai'i Life Real Estate Brokers - Haiku, HI
Maui Real Estate sales and lifestyle info

You really "nailed" it with this one, and I hope it gets featured.

Mar 18, 2018 04:12 PM
Debb Janes
Nature As Neighbors - Camas, WA
Put My Love of Nature At Work for You

It's a huge mistake, far too many think they can make a deal? Oh they will make a deal alright. Ha. Recently, we contacted a builder who refuses to allow co-op agents. First ever, if I was the buyer I'd run like the wind. They are from out of town, I'll see how they handle it. D 

Mar 19, 2018 09:00 AM
Gayle Rich-Boxman Fishhawk Lake Real Estate
John L Scott Market Center - Birkenfeld, OR
"Your Local Expert!" 503-739-3843

Jeffrey, this is so thorough!! Wonderfully written and I learned a great deal through your eyes. I have never dealt in this arena and this is part of what makes AR such a terrific platform for learning and sharing valuable knowledge. 

I hope that this gleans more client business, you deserve it for new construction homebuilding buyers! 

Mar 21, 2018 08:49 AM
Kathy Streib
Cypress, TX
Home Stager/Redesign

Hi Jeffrey- even though my husband is a retired builder of new construction homes, it does make sense for any buyer to have their own representation...someone who is looking out for their interests. 

Mar 22, 2018 12:46 PM
Michael Jacobs
Pasadena, CA
Pasadena And Southern California 818.516.4393

Hi Jeffrey - people need to pause ask "who is representing me?". Therein lies the answer. 

Mar 27, 2018 04:50 PM
Inna Ivchenko
Barcode Properties - Encino, CA
Realtor® • GRI • HAFA • PSC Calabasas CA

Hi, just wanted to leave a quick shout out about your birthday:) 

Have an awesome week! 

p.s. congrats on two more closings!

Mar 29, 2018 01:16 PM