Buying a New Home - You NEED Representation

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 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 walkthroughs provided by the Builder,   A REALTOR® will accompany a Buyer on all walkthroughs 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!

 

 

 

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Rainmaker
5,618,049
Roy Kelley
Realty Group Referrals - Gaithersburg, MD

Prospective home buyers will be in very good hands when they seek your professional real estate services.

Jan 23, 2020 06:16 AM #1
Rainer
226,291
Ben DeHaven
Haven Realty & Investments - Winter Haven, FL
Proudly serving Winter Haven & Lakeland, Florida

I once did a Facebook post on how a particular builder was offering up to $8,500 in closing cost/down payment assistance. A few days after I made that post one of my FB friends messaged me and asked how. They had closed on a brand new home less than 3 months ago without a realtor. How much of that $8,500 did they get? ZERO! 

I wouldn't have cost them a penny to get them a $8,500 credit. 

Jan 23, 2020 06:22 AM #2
Rainmaker
4,231,706
Joan Cox
House to Home, Inc. - Denver Real Estate - 720-231-6373 - Denver, CO
Denver Real Estate - Selling One Home at a Time

Roy, I like to think that as well, thank you! 

Jan 23, 2020 06:24 AM #3
Rainmaker
4,231,706
Joan Cox
House to Home, Inc. - Denver Real Estate - 720-231-6373 - Denver, CO
Denver Real Estate - Selling One Home at a Time

Ben DeHaven EXACTLY, Realtors know there usually are some incentives, and most buyers going it alone won't even know about them!  

Jan 23, 2020 06:25 AM #4
Rainmaker
3,773,044
Sheila Anderson
Referral Group Incorporated - East Brunswick, NJ
The Real Estate Whisperer Who Listens 732-715-1133

Good morning Joan. I helped a friend buy new. She and her husband didn't understand these things and still don't. I believe they will go it alone next time and that's too bad.

Jan 23, 2020 06:42 AM #5
Rainmaker
2,741,704
Brian England
Arizona Focus Realty - Gilbert, AZ
MBA, GRI, REALTOR® Real Estate in East Valley AZ

It makes me sad to see people get bamboozled, especially when they truly believe that they are getting a great deal.

Jan 23, 2020 06:46 AM #6
Rainmaker
4,231,706
Joan Cox
House to Home, Inc. - Denver Real Estate - 720-231-6373 - Denver, CO
Denver Real Estate - Selling One Home at a Time

Sheila, our sales reps usually point out the incentives they are getting.  This does makes buyers feel good.

Jan 23, 2020 07:17 AM #7
Rainmaker
4,231,706
Joan Cox
House to Home, Inc. - Denver Real Estate - 720-231-6373 - Denver, CO
Denver Real Estate - Selling One Home at a Time

Brian England love that word - bamboozled!   But, that is what it is when go it alone.

Jan 23, 2020 07:18 AM #8
Ambassador
1,952,055
Debb Janes EcoBroker and Bernie Stea JD
ViewHomes of Clark County - Nature As Neighbors - Camas, WA
REALTORS® in Clark County, WA

You got it, Joan. Your advice is spot-on. I worked for builders and I can promise, they are always looking at their own bottom line. Plus, things fall through the cracks. I was constantly reminding the site supervisors of issues I'd find in homes. For example, a missing pan in an upstairs laundry room for a washer, or the wrong grade of appliance package installed, or??

Jan 23, 2020 07:38 AM #9
Rainmaker
4,231,706
Joan Cox
House to Home, Inc. - Denver Real Estate - 720-231-6373 - Denver, CO
Denver Real Estate - Selling One Home at a Time

Debb Janes EcoBroker and Bernie Stea JD you saw the issues, and we do too, even if we haven't worked for the builders.    Always best to have someone on your side when buying a brand new home! 

Jan 23, 2020 08:15 AM #10
Rainmaker
2,053,159
Grant Schneider
Performance Development Strategies - Armonk, NY
Your Coach Helping You Create Successful Outcomes

Good morning Joan - representation is crucial.  I had it and got 10k for cash and cover closing costs.  Would a walk in have gotten that?

Jan 23, 2020 09:33 AM #11
Rainmaker
4,231,706
Joan Cox
House to Home, Inc. - Denver Real Estate - 720-231-6373 - Denver, CO
Denver Real Estate - Selling One Home at a Time

Grant, most walk-ins don't have a clue what a builder is giving for incentives, so I would say NO......

Jan 23, 2020 10:02 AM #12
Rainmaker
751,944
Andrea Bedard
Thompson Company, REALTORS® - Silver Spring, MD
M.A.; REALTOR® Silver Spring, MD and beyond

That's a great summary of all the reason buyers should not forego representation when buying a new construction home! It makes you wonder how many incentives buyers have lost out on over the years by insisting to go it alone (and not realizing that the builder's sales rep is not looking out for them).

Jan 23, 2020 10:34 AM #13
Rainmaker
4,231,706
Joan Cox
House to Home, Inc. - Denver Real Estate - 720-231-6373 - Denver, CO
Denver Real Estate - Selling One Home at a Time

Andrea Bedard you are so right, and after they found out they LOST money, when they thought they could save some, bet that was an eye-opener! 

Jan 23, 2020 10:42 AM #14
Rainmaker
2,540,598
Rebecca Gaujot, Realtor®
Vision Quest Realty - Lewisburg, WV
Lewisburg WV, the go to agent for all real estate

Hi Joan, you are right on. Most buyers do not know how a Realtor can help buyers when purchasing a new home... this post shows why they need one!

Jan 24, 2020 12:29 PM #15
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Rainmaker
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Joan Cox

Denver Real Estate - Selling One Home at a Time
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