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Don't Go It Alone with a Brand-New Home

By
Real Estate Broker/Owner with House to Home, Inc. - Denver Real Estate - 720-231-6373 DRE# ER40011786

 

It is a known fact, anyone can walk into a New Home sales office, and buy a home.    You don't have to bring along a REALTOR to assist you - you can go it alone!   BUT, why would you, when representation is paid for by the Builder?   Let me explain a few reasons a Buyer SHOULD have representation to bring up some ideas - 

 

1.  The Sales Representative is very helpful, but when it comes down to it - they work for the Builder, NOT the Buyer.

 

2.  When something is or seems wrong, you are the only one to make any noise to HOPE the builder fixes your issues.   When you have representation, you have a REALTOR® community behind you.   It doesn't take long for bad news about a builder to spread in our circles!

 

3.  Many times a Builder will offer incentives, but sometimes these options are not out in the open, and if you don't know to ask, you are missing out on some closing costs or upgrades paid for by the Builder.

 

4.   REALTORS® know the value of homes, and how would a potential buyer know the value without access to the MLS?   I recently showed some custom homes where there were NO comps without several miles to justify the price.

 

5.   Buyers get excited once looking at brand-new homes.   All the beautiful finishes, knowing when they move in, that brand new smell, and no one has lived there before.    Did you pick the right lot?   Does it face North (here in Denver January can be miserable!)?    Does the lot back to open space or power lines/transformers?    When buying new construction you should always be thinking of resale value too.   When you build from a "dirt start", you are able to go to the design center to pick your colors and options.    The builder won't discourage you to upgrade to the hilt, but will it appraise?   I have seen/heard of some Buyers that had a low appraisal and had to bring extra money to closing to cover the shortage.    

 

6.  During the process of building the home, there will be walk-throughs provided by the Builder,   A REALTOR® will accompany a Buyer on all walk-throughs and point out things of interest that the Buyer should know or be aware of.

 

A few years ago I had a potential Buyer ask why he needed me to buy a brand-new home.   I met with him and explained my value to his purchase, and I was with him when he decided to write on a brand new home.   During the process, the Builder had agreed to a couple of things the Buyer asked for, and a month prior to closing, these were still not addressed.   The VP of this Builder was at our closing because these items were NEVER addressed, but were in writing.    He got a check from the Builder at closing, due to being represented!   

 

If you have decided on a brand new home and would like representation, call me.  I have assisted many Buyers over the years with their brand-new home!

 

 

 

Posted by

Joan Cox
Broker/Owner, REALTOR®
House to Home, Inc.

Serving the Denver Metro area including all suburbs


Helping Buyers and Sellers achieve their real estate dreams, one house at a time!

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Comments(22)

Jeffrey DiMuria 321.223.6253 Waves Realty
Waves Realty - Melbourne, FL
Florida Space Coast Homes

I generally have as many or MORE issues with new homes. The resale home has had someone living in it...correcting the problems that pop up.

Jan 26, 2023 07:10 AM
Joan Cox
House to Home, Inc. - Denver Real Estate - 720-231-6373 - Denver, CO
Denver Real Estate - Selling One Home at a Time

Dorie, it kind of is sad, the sales rep ACT like they work for the buyers, and usually never say - they work for the builder!

Jan 26, 2023 07:12 AM
Joan Cox
House to Home, Inc. - Denver Real Estate - 720-231-6373 - Denver, CO
Denver Real Estate - Selling One Home at a Time

Michael, around Denver, usually the sales reps are NOT REALTORS, they are sales people working for the builder.

Jan 26, 2023 07:13 AM
Joan Cox
House to Home, Inc. - Denver Real Estate - 720-231-6373 - Denver, CO
Denver Real Estate - Selling One Home at a Time

Jeff, you are right, LOTS can come up with a brand new home, depending on the Superintendent on duty.

Jan 26, 2023 07:13 AM
Nina Hollander, Broker
Coldwell Banker Realty - Charlotte, NC
Your Greater Charlotte Realtor

Hi Joan... I've met an awful lot of people who did new construction with the assistance of an agent experienced with new construction... the stories I've heard.... and yet, don't hear those stories from my clients who've built with me.

Jan 26, 2023 08:06 AM
Joan Cox
House to Home, Inc. - Denver Real Estate - 720-231-6373 - Denver, CO
Denver Real Estate - Selling One Home at a Time

Nina Hollander, Broker hear some stories too, but many times it is the builder.   One of my lenders has a new construction loan, and is having all kinds of trouble.

Jan 26, 2023 08:10 AM
Joan Cox

Nina Hollander, Broker wow, have never heard a story like that.   Good for your buyer!

Jan 26, 2023 08:53 AM
Nina Hollander, Broker

Joan Cox no doubt, it is the builder. But the builder does not represent the buyer... so the buyer has no on efighting for them when things are not going right. In one new home, they replaced 1800 sf of carpet for me two days before closing because the seams were in all the wrong places. A buyer without an agent might not have caught the issue in the first place, much less gotten the builder to rip everything out and start from scratch.

Jan 26, 2023 08:20 AM
Scott Schulte
Scott Schulte LLC - Phoenix, AZ

I recently had a conversation with a new home builder. He was bragging about how the home I called about had a 3 percent commission.  Then he put me on hold for a moment comes back, and by the end of the conversation, they only had that house for 3 percent, which was now under contract.  All the others were 1%, and some did not pay at all.  What a bummer, agents could really have another option for our clients if they didn't do things like this.  

Jan 26, 2023 08:22 AM
Nick Vandekar, 610-203-4543
Realty ONE Group Advocates 484-237-2055 - Downingtown, PA
Selling the Main Line & Chester County

It is easy to miss simple things, after we moved into our new home, we noticed there is no closet on the main floor, so visitor coats need to go on the bed or carried upstairs. Also the upstairs hall light switches are all upstairs, so no light on the stairs till you reach the top. Bad design by the builder.

Jan 26, 2023 08:24 AM
Michael Jacobs
Pasadena, CA
Pasadena And Southern California 818.516.4393

Hello Joan - so many don't understand how real estate works.  Representation matters.  Due diligence does too even when it is investigated under different circumstances.  

Jan 26, 2023 08:35 AM
Lise Howe
Keller Williams Capital Properties - Washington, DC
Assoc. Broker in DC, MD, VA and attorney in DC

you are absolutely right - buyers need an advocate , particularly first time or less experienced buyers. It is easy to miss things - and I agree that brand new homes can often  present *more* issues 

Jan 26, 2023 09:13 AM
Roy Kelley
Retired - Gaithersburg, MD

This is very good information to share with prospective home buyers.

Have a great day and a productive week.

Jan 26, 2023 09:55 AM
Ed Silva, 203-206-0754
Mapleridge Realty, CT 203-206-0754 - Waterbury, CT
Central CT Real Estate Broker Serving all equally

Representation is always important but when the builder holds all the cards, having and advocate is crucial.

Jan 26, 2023 05:37 PM
Kat Palmiotti
eXp Commercial, Referral Divison - Kalispell, MT
Helping your Montana dreams take root

This is a great overview of why a buyer should have a real estate professional assist them in the purchase of a new construction home. Very good post!

Jan 27, 2023 05:02 AM
Joan Cox
House to Home, Inc. - Denver Real Estate - 720-231-6373 - Denver, CO
Denver Real Estate - Selling One Home at a Time

Scott Schulte we were seeing that too, until we saw the market shifting, and now they need us again.   BUT, we don't forget how they treat us during a frenzied market!

Jan 27, 2023 06:33 AM
Joan Cox
House to Home, Inc. - Denver Real Estate - 720-231-6373 - Denver, CO
Denver Real Estate - Selling One Home at a Time

Nick Vandekar, 610-203-4543 that is sad to hear, and does sound like a bad design.

Jan 27, 2023 06:33 AM
Joan Cox
House to Home, Inc. - Denver Real Estate - 720-231-6373 - Denver, CO
Denver Real Estate - Selling One Home at a Time

Michael, that is so true, and why we have to get the word out!

Jan 27, 2023 06:34 AM
Joan Cox
House to Home, Inc. - Denver Real Estate - 720-231-6373 - Denver, CO
Denver Real Estate - Selling One Home at a Time

Lise, buyers can go in and buy on their own, but they won't know, what they don't know!    They do need representation!

Jan 27, 2023 06:34 AM
Joan Cox
House to Home, Inc. - Denver Real Estate - 720-231-6373 - Denver, CO
Denver Real Estate - Selling One Home at a Time

Thanks Roy.

Jan 27, 2023 06:34 AM
Joan Cox
House to Home, Inc. - Denver Real Estate - 720-231-6373 - Denver, CO
Denver Real Estate - Selling One Home at a Time

Ed, in certain markets, they do hold all the cards.

Jan 27, 2023 06:35 AM
Joan Cox
House to Home, Inc. - Denver Real Estate - 720-231-6373 - Denver, CO
Denver Real Estate - Selling One Home at a Time

Thank you Kat, hope I can get the word out!

Jan 27, 2023 06:35 AM