Great question asked by millions of new home buyers each year. It is important to know that purchasing new construction is usually more complicated and intimidating than buying a preowned home. The process to build takes three, six, or even 12+ months depending on the location, size, and upgrades. Having a real estate agent (buyer’s agent) doesn’t cost you anything. It is a myth that a builder’s sales agent will give a new buyer extra upgrades or price reductions if they don’t have an agent. Understanding that having an agent represent you creates a fiduciary relationship and is the key that is not fully understood along with the benefits below.
- An Experienced buyer’s agent knows how to present requests and negotiate – An experienced new construction agent (CNHS & RCC Certified) can negotiate better with the builders’ sales agents as well as follow and advise the buyer during the entire building process.
- An Experienced buyer’s agent knows how to read and explain a new construction contracts – Unless you are a seasoned agent who has extensive knowledge of new home contracts, you are going to miss several issues along the process. One example of the CNHS & RCC real estate agents is that they have extensive knowledge about inspections. Which inspections are important for new home construction and should be within the initial agreement.
- A buyer’s agent will be there even after the home closes and developer leaves – When the new construction neighborhood is complete and the builder’s sales agent leaves to another location, your agent is still with you when communication might need to occur between you and the builder. Your real estate agent should have completed their research on the builder and their customer service reputation among their peers.
- An Experienced buyer’s agent will have suggestions and advice along the journey – Your agent is there to help during the entire process and take the stress off you. Keeping the build on schedule, errors and recommended options to fix, and more. New build agents are on top of all the correspondences and communication for you.
- An Experienced buyer’s agent will be able to analyze the data, trends in the area, and offer advice – For example, sometimes a new construction community doesn’t have comps to compare pricing of the new home. A builder could take advantage of the buyer setting their price without having similar homes in the area to compare. Ultimately the buyer could spend too much on the home and lose value the first day they sign the mortgage papers.
- An Experienced buyer’s agent also talks to other agents – They share information about builders in the area. Agents know about a builder’s customer service during and after the build.
- Site agents are in the field to sell homes, not be there to look out for your best interests – they do not have any fiduciary responsibly to you in this transaction. When buying new construction many buyers believe it is a good idea to not have a real estate agent to save money with the builder. This too is a myth and in the end, could actually cost them more money. Again, remember that the builder’s representative is working on the behalf of the builder and will make decisions in the best interest of the builder, not the buyer. Make sure your agent is familiar with new construction and can help you during the entire process. One way you can verify if an agent knows new construction is look for the following 2 certifications. (CNHS) Certified New Home Specialist® & (RCC) Residential Construction Certified®.
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