"Do I need an agent if I'm buying new construction?"
Top 10 Reasons to Have Agent Representation in
a New Construction Purchase
Building a home is an increasingly appealing alternative to buying a
preexisting home in this competitive market. Whether you are
buying a home that was just completed (aka inventory or spec
home) or building one from the ground up, it is essential to have
your own representation to protect and guide you throughout the
Below are the top 10 reasons why we feel you need to hire a great
agent to partner with after you decide to build.
The Sales Agent Represents the Builder, Not the Buyer. The onsite or sales agent acts as a listing agent in new construction, representing the best interest of the builder. It is important that you have your own advocate in this large and extensive undertaking to protect your best interests along the way. Builders and sales agents often prefer you have your own representation as well to help navigate through all the intricacies of the new construction process.
It’s FREE! Literally, no strings attached. Using a buyer’s agent is completely free to you as the buyer. Builders have already allocated your agent’s commission in their yearly marketing budget, so it is no skin off their back either.
Match the Buyer with the Builder. Not all builders are created equally, and different buyer needs require different building styles or home options available. Depending on the specific requirements you have, a great agent will pair you with neighborhoods and builders that can meet those needs. An agent will research and review plans and options available, amenities offered, standard features, restrictive covenants, and anything else that pertains to your must-haves.
Review Builder Purchase Contract. If you have ever seen a builder contract, you realize that it in and of itself is overwhelming to say the least! These contracts are often extensive and wordy- jam packed with legal jargon mostly to protect the builder. Having an agent to help decipher what you are signing helps reduce the anxiety from the beginning. We know the right questions to ask right out of the gate to ensure your wants and needs are being fulfilled.
Up front Contract Negotiations – Get More for Your Money! In a highly competitive market, some new construction neighborhoods will advertise incentives to the public, such as an appliance package or a specific dollar amount towards upgrades. However, more frequently than not, they are either not advertised at all, or the advertising is geared towards the agents themselves. Agent knowledge of the communities and builders can have a positive influence on the incentives or overall contract terms for you as the buyer.
Meet Specific Milestones and Have Someone in Your Corner When the Project isn’t Going as Planned. There are multiple milestones during the new home process, including: Pre-Construction Meeting, Design Center Meeting, Pre-Drywall Meeting, Inspections, Builder/Blue Tape Walk-through and Final Walk-Through. Not only is it useful to have a trained set of eyes walking through the home with you during each appointment, it is even more essential if things in the build start to go awry.
Assist Through the Selections Process – Keep Expectations and Pricing in Check. That first design center appointment can be overwhelming for many buyers. Certain upgrades offered may be completely unnecessary, a misfit for your personal or family needs, or even come at a higher cost than if you added them after the build. Preparing yourself ahead of time and bringing your agent with you to the Selections Process can help keep you on track for your final goal amount, and keep you focused on what is truly most important to you.
Schedule Home Inspections and Negotiate Repairs. Home inspections should not be overlooked, even in new construction. There is no better time to check the ins and outs of a home than while it’s being built. Inspections can either take place at the pre-drywall stage, or after the home has been completed prior to closing. The builder will often fix or repair all necessary items from the inspection results, as opposed to in a re-sale where the buyer and seller negotiate any repairs done.
Ensure Smooth Overall Transaction and Timely Closing. Contrary to popular belief, new construction transactions are often much more stressful and time consuming than buying a preexisting home. Having the aid of a knowledgeable agent greatly reduces the headaches the buyer endures to turn their vision into a reality. Agents help facilitate all the moving pieces of a new build, including: communicating with the sales agent and builder to make sure time goals and expectations are being met, setting up any necessary inspections or meetings along the way, keeping the buyer(s), lender, and closing attorney in the loop with status updates, and completing countless other tasks throughout the process.
It’s FREE! Okay, so we may have already mentioned this, but figured it was worthy to recap the fact that you do not pay a Buyer’s Agent assisting you in the process of your new home build.
Taken from Dreamteam Realty NYC. 10/11/2017