We’ve recently talked about the proliferation of new construction in our area. It’s no wonder there are a lot of new home developments in our area. Who doesn’t want a new home in pristine condition, without someone else’s problems or issues; full of new appliances, all the latest design concepts and best of all finished with your design ideas like paint, tile and cabinet styles?
People think buying a new home is like buying a car or major appliance. You go into the model, pick a lot, floorplan and develop your finishes in the design center and wait for the finished product so you can move in and have a house warming party. Builders and their agents are ready and waiting to help you through the process. While it may be this easy in most examples, you need to remember that builders and their agents have the builder’s interests first. In fact, the builder’s agent has a fiduciary responsibility to the builder to put the builder’s needs first. This is why you should have your own representation in the transaction.
It is important to have a knowledgeable agent working for you to make sure your interests are protected. The best part is the way real estate transactions are conducted, it won’t cost you a thing to have this representation. The builder pays your agent to be involved in the transaction. A lot of people have the misconception that having an outside agent provides less leverage in price negotiation. That is simply not true. Builders know that one-half of their transactions will involve an outside agent. They have built that expense into their entire inventory and you won’t get a better deal by eliminating your agent.
So how can an agent representing me help?
- They should be knowledgeable of the inventory from the various builders. While you may think you have found the perfect model in the perfect neighborhood, are you sure there isn’t another similar builder or neighborhood offering a better lot, floorplan or amenities for your needs? An agent experienced in new construction can provide alternatives that fit your needs and desires.
- Once you’ve settled on a builder, are you getting the best deal. Most builders do not negotiate on price but will negotiate on extras. A premium lot, upgraded finishes, or other extras are things builders can give you as an incentive. An agent working in new construction understands what each builder is willing to give up and even when the best time to negotiate those items. As an example, a national builder that is publicly traded may be more willing to negotiate just before their earnings report. There are many nuances to helping you get the best deal.
- Helping you get the best deal on financing and closing costs. Builders often offer incentives to close with their title firm or use their in-house lender. Are you truly getting the best deal? Experienced agents know what the market is for financing and closing expenses.
- After the home is contracted, your agent can help you identify professionals that assure the house is being built correctly. Even though a new home is warranted, do you really want to deal with a roof leak or other major issue? In an environment where there are so many homes being built it is impossible for builders to provide the level of quality control on their construction we would expect. Your agent can help you have an inspector look at the home during the building process or just do a final inspection upon completion.
- Now you are in the house and you start finding all those little items that aren’t quite perfect. Builders usually are more than willing to come back and fix that grout line that’s not quite right or replace a fogged window, but do they have the time to get it done on your schedule? An agent that does a lot of business with a builder has more leverage than an individual homeowner and can help you get these items addressed quickly.
Buying a new construction home is exciting and can be a fun experience. Getting help from your agent who can make sure you get the best deal for the highest quality can streamline the process. If you are interested in what’s available, take a look at our new website www.lakewoodranchnewhome.com/discover-new-homes