New Construction and Why to Consider a Buyer’s Agent
You’ve decided you want to purchase a New Construction Home. That’s great! There are so many benefits to go this route when buying a home.
Here are just 3 of the numerous benefits of choosing a new construction, by Forbes.com.
#1 “You’re able to have the builder customize the home before construction is completed, so it will be built with your personal touch- a big bonus!”
#2 “A big financial benefit of new properties is that you won’t have to do much maintenance. With brand new appliances, plumbing, heating, and air, you should be repair free for at least a few years.”
#3 “Utilizing new construction materials, just-built homes are usually more energy efficient; that means potentially lower utility bills.”
So why should you use a buyer's agent, doesn’t the Home Builder have an agent?
The answer is yes, and well no. Yes every New Construction Home Builder does have an agent, and yes you could use that agent. However, we recommend you having your own representation. What we mean is that “in general, builders’ model homes are staffed by agents who work directly for and represent the builder and their interests. A buyer also needs to have a real estate agent who represents them and looks after their best interests,” Inman.com. One key thing to note, is that you should bring your agent with you to meet with the New Construction Home Builder agent at the first meeting. Many times if you do not inform the other agent you have representation, you could lose the opportunity for this later. If not feasible, at a minimum, verbally let the onsite agents know you have an agent representing you and give them one of your agent’s business cards so they have your agent’s contact info.
What are the real benefits?
A buyer’s agent can help validate that you are getting the best pricing, whether that is negotiating on the home’s price, or helping you save with other costs like closing costs. Having your own agent will help keep your budget in line. You know exactly how much you can spend, but touring the model home might not be what you can afford. The model home typically has all of the incredible upgrades which the builder hopes will encourage the buyer to purchase. Your buyer’s agent will know what comes standard and can help you discuss what upgrades are best for your budget. Most importantly, they will help you realize what upgrades will be good for your wants, but also be good for resale down the road.
Buyer’s agents will help think of things you might not have otherwise considered, such as home inspections. You might think that by purchasing a new construction your home is 100%. Your agent will be able to discuss and recommend a home inspector and help get repairs completed before you move in.
In addition to home inspections, a buyer’s agent will be with you every step of the way. That means taking care of all the details of the home buying process from start to finish. They also will be in communication with the builder’s agent handling all of the questions and potential issues, which ultimately means less stress on your shoulders and frees you up to focus on other things.
If you only remember one thing, remember this.
It does not cost you anything extra to have a buyer’s agent when purchasing a new construction. Inman.com points out that “Some new-home buyers think that if they do not use an agent for their purchase, the builder will reduce the price of the home by the amount of the commission. For the most part, this cannot be further from the reality. Builders do not want to reduce their prices because it sets the comparison price for future home sales in that neighborhood. Builders instead add the commissions paid to a buyer’s agent into the marketing budgets of the homes. If a buyer goes to a new-home builder without a real estate agent, either the builder’s agent or the builder will pocket that money.”
At Jeremy Russell & Associates, we have experience helping buyers purchase their New Construction dream home. We also have agents who purchased New Constructions as their own homes, so we know what to expect from both side’s of the spectrum. Let us join your team to purchasing the building of your dream home!