Why You Should Have A Realtor When Buying A New Home Construction

A big part of the American dream is to own your own beautiful home, and for a lot of people, they more specifically want to build their own home in their vision. Building a home is an expensive and lengthy endeavor – estimated to take anywhere from 9 to 12 months total to complete. The journey requires a million little details and decisions, but if your dream is to build a home this will hardly deter you. Soon enough, you’ll be reaping the benefits of owning a brand new home when you have low energy costs and fewer maintenance calls. Don’t forget the peace of mind that comes with your new home being under warranty.

One question you may have if you are looking for new construction is, “Do I need a realtor to buy new construction?” The short answer is yes. Homebuilders will have their own agents who are usually quite friendly and contain a wealth of information on the new construction, but it’s important to remember that they will have the builder’s interest as their top concern, not yours.

New construction can be a great option for homebuyers. New construction means you get to live in a pristine, untouched home, where you can customize finishes for a look you love and you won’t have to worry about making upgrades for years to come. Thus, you might think buying new construction is going to be easier than buying a resale, but not so fast. There can be many roadblocks along the way. Working with a new construction Realtor can guarantee an easy transaction and give you peace of mind.

There are many reasons why you should use a Realtor for new construction. It’s always wise to have a professional on your side and a real estate agent can give you a sense of security in the transaction. These are just two of the many benefits that come with using a new construction Realtor.

Read on for 5 reasons why you should use a Realtor for new construction.

No. 1: Realtors Know the Best Time to Buy

You want to everything about your local market’s real estate, ask a realtor. Your Realtor has the inside scoop regardless of whether you are buying an existing home or looking at new construction homes. They know the area’s real estate market inside and out and can help you get the best deal possible.

One thing your new construction Realtor can help you determine is the best time to buy. Believe it or not, but many of the nation’s largest builders are publicly traded companies. They answer to shareholders and need to meet sales goals. This is why your Realtor might tell you that the best time to buy a new construction home is toward the end of the quarter. As the quarter comes to a close, builders might be more aggressive with sales and discounts and may be more open to negotiations in order to meet sales goals.

Additionally, your Realtor might tell you that December is a good month to buy a new construction home. Most people associate December with gift buying, not home sales. This means that builders are itching to make sales and may be willing to negotiate.

The fact is your Realtor knows the best time to buy and can guide you through the process.

No. 2: A Realtor Can Help You Find the Best Home Builders

Are you familiar with home builders? Are you aware of the quality of their construction? This is where your new construction realtor proves useful. Your real estate agent has a wealth of experience in the local home market. They can put this knowledge to work for you in finding a builder you can trust. They know about the quality of workmanship, warranties, track records for resolving issues, and more. Start putting together your home buying wish list to get yourself organized so you can hit the ground running when it's time to discuss how your new home will look, what its layout will be like, etc.

Your new construction Realtor can give you a clear understanding of the process and what’s down the road when making a purchase.

No. 3: A Realtor Can Advocate and Stand Up for You

Some buyers believe they don’t need a Realtor when buying new construction. In this line of thinking, they believe avoiding a Realtor will save them money on the transaction. This isn’t true, as working with a new construction Realtor can actually help you save money.

When you don’t work with a Realtor, you are letting the builder’s agent represent you. The builder’s representative won’t be working in your best interest. This means you are not their top priority, as they are working for the home builder. Having representation from a new construction Realtor means that an experienced professional has your back. A new construction Realtor will advocate and stand up for you throughout the entire transaction.

You need a new construction Realtor who knows how to ask the right questions. To find an experienced agent who can advocate for you, you need to ask a few questions, too. Consider asking a potential Realtor:

• What are the benefits of buying new construction over an existing home?
• Do you know of any lenders who specialize in new construction mortgages?
• What is your experience selling new construction homes?
• How familiar are you with the new construction purchase process?

No. 4: A Realtor Can Negotiate on Your Behalf

A new home can be expensive, especially if you’re opting for new construction. In many cases, builders advertise the base price of their homes. This is often for the most basic model of the home. It’s likely not the home you see when you tour the model. Models usually include many upgrades.

However, one of the benefits of buying new construction is customization. You can make a new construction home your own. One of the benefits of working with a new construction Realtor is that they can negotiate the customizations with the builder on your behalf. This can help ensure you get a fair price for your upgrades and alterations to the floor plan.

An experienced new construction Realtor can go into these negotiations prepared to get you the best price possible, saving you money in the long run.

No. 5: A Realtor Can Help with Inspections and Contract Contingencies

You know you need an inspection when you buy an existing home, but did you know an inspection is an important part of buying new construction? Most homeowners believe a new home warranty will cover any problems that may arise, but in most cases, it doesn’t. An experienced new construction Realtor can recommend the right inspections for a new home. For example, if the new construction home has a septic system, it might be smart to make the purchase contract contingent on an inspection of the septic system. This might prevent plumbing issues down the road.

There are many other scenarios in which a new construction Realtor can help with the new home buying process. They know which inspections are necessary on a new construction home and can make sure all are performed before closing.

When it comes to buying new construction, there are lots of benefits that come with working with an experienced real estate agent. Don’t go at it alone. A skilled new construction Realtor is a professional working on your behalf. They can save you time, money, and stress.

How a Realtor Can Help

When you work with a Realtor on a new home build, their top concern will be you and making sure all of your needs are met. Make sure you don’t go officially check out the model home or builder for the first time without your realtor. You may lose the opportunity to let one represent you during your home buying journey.

If you were considering not hiring a realtor in order to save money, it would most likely not work out that way. In most cases, your Realtor will be paid a commission from the home builder. This means that you don’t pay your Realtor directly. If you decided not to hire a Realtor, those fees will likely go to the builder’s agent or be put back into the builder’s marketing budget. So why not take advantage of this golden opportunity, it’s of no extra cost to you, and they ensure you get the best possible deal.

Pros for Working with a Realtor Instead of Working with the Builder’s Agent

The builder’s agents will be looking out for the builder’s interests over your interests. This is why you need a Realtor in your corner to negotiate for you. If you didn’t have a Realtor, you might overlook things like getting the home inspected since it is brand new. That would be a huge mistake and it’s unlikely your builder’s agent will recommend an inspection against their building.

Your real estate agent will be able to help you set up the necessary inspections of the home with a licensed home inspector. That will cut headache costs for you in the future if something in the plumbing or wiring was overlooked during construction.

Another big reason you need an agent is to help with contracts. Unless you are well-versed in builder’s contracts, you’ll definitely want your own agent who will be familiar with these kinds of purchase agreements. They will know what to look out for and how to negotiate on your behalf. This is important when you want to include upgrades and floor plan changes but would like to lower those price points. Builders are not likely to negotiate on lowering the cost of the home, as it would be unfair to other recent buyers. They also don’t want to lower the value of their homes, but will likely negotiate on upgrades.

What to Look for in a Builder

You will want to shop around for home building companies before you start shopping for a custom home. Search online for news on top home builders in your preferred area and look out for testimonials on review websites and social media. Then pull your information together and discuss your preferences with your agent. A good Realtor will know the reputations of the home builders available in your area. They’ll be able to give you recommendations for home builders and will know their quality of work.

Homebuilders will usually offer to finance, so be sure to discuss with your Realtor if this is the best financing option for you. Realtors will be able to connect you with other quality lenders that have financing options that may be better for your situation.

How to Research a Neighborhood/City

When buying a new home build, you will want to visit the area before committing to searching for a new home there. Drive around. Time what your commute to work would be, and test out how long it would take for your kids to get to school. You don’t want to move into your new home only to realize the commute is not what you had in mind.

If it’s not in a private neighborhood, make sure to visit the area and walk around. You may want to try talking with past buyers and look up online reviews. Look up the areas where you would like your new home build to be online. Then see what your Realtor knows about the sites and the builder’s reputations before committing to putting in an offer on a new home.

Conclusion

To get the best possible deal on your new home build, you’ll want a Realtor present to negotiate expertly on your behalf. They will make sure everything is in writing so that anything the home builders have promised you doesn’t get left out of the contracts. You’ll want to remember this because you’re not buying the model home – which features all of the upgrades that the builder is advertising and is not the standard version of the home builds that’s for sale. Your Realtor may be able to negotiate upgrades for lower price points than you would on your own.

If you choose to buy a new home build, remember not to officially visit the builder’s site or model home for the first time without a Realtor or you may lose the chance to let one represent you during the journey of buying a new home construction.