Hire a Real Estate agent for New Construction

Thinking of buying a newly constructed home?  Why not drive to the development and look at their product on your own?  Oh, you believe the urban legend. “Buying from the builder will provide benefit because they will save the real estate commission”.  Read further, you need to hire a real estate agent for new construction.  

Buying a newly constructed home is a challenge different but similar to buying an existing home.  The first thing that a prospective buyer will find if going direct is that there is no benefit for doing so.  This is how most builders sell their product. If you go direct to a builder, you have no “partner” to assist you through the process.  More specifically to point out issues which arise in new construction. Hiring an real estate agent to help you through the search part of the process is important.  

Hire a Real Estate Agent for New Construction

Experienced agents know about all of the new home projects in their usual marketing area.  Some knew what was on the land prior to the start of construction and others know about the permitting and hearing process.  While the builder must provide information about serious issues in the area, they may not know of others.

Some builders will negotiate, others will not.  A good agent knows those that will and how far they will go with price or options.  Agents familiar with the developments will know if and where the builder cut back on refinements.  

The simple fact is that you do not pay for the assistance of your partner agent, they are paid by the builder.  You know that money you thought that you would get, well that would go to your partner. Your price will be fixed regardless so why not have the free assistance of an expert.  If builders agree to “cooperate” with your agent, they have decided that for that project, they must pay any real estate agent who brings them a willing and able buyer according to state real estate regulations.  These regulations which are somewhat nationwide prohibit “kickbacks” or other forms of refunds from builders to buyers.

Have you seen all new homes in the area?

You may fall in love with the first development you see.  Builders generally employ good real estate sales people who can “help” you make a decision.  What about the homes you did not see? Is there a better neighborhood e.g. closer to work, park nearby, schools have higher ratings.  

Some people look for a new home because it’s what they think they want.  Some things to consider when buying new are:

• You may need to modify landscaping
• Install hooks, fans, lights etc.
• Clear land, expand grass, irrigate
• Rain gutters are not usually supplied on new homes
• Some things do not work property
• Additions e.g. pool, out building, paving

A talented real estate agent may want to take you by an existing home that meets and perhaps exceeds your needs within lower end of your acceptable price range.  In other words, a move-in ready home for similar or less money than the new house.

In some cases, there are homes in the new development that were purchased within the last year that are now for sale.  The difference is that the seller may be willing to negotiate, perhaps they purchased the home for less.

A “newish” home in the same development

Your search is all about options.  If you are certain that you want new, great.  If you would explore “newish” along with the new, even better.  The more options you give to your real estate partner the better for you.  

Should you decide you want to buy a home and that new construction is the direction, contact your real estate agent first.  Most builders will not “cooperate” with an real estate agent after their employee has expended time showing you their products.  You need to have your agent with you when you go to the new home model or if you want to contact the builder, have your agent set an appointment.

If you are buying from afar that is, you are out of state, a local partner is essential.  There are stages in the building of the property that require you or your agent to visit and inspect.  Particularly if you have added some structural additions e.g. fire place. Take this from experience, things happen.

Things happen when homes are being built

One time I was buying a home and my agent dropped by during the phase when bath fixtures were being installed.  I had ordered a tile shower instead of a moulded bathtub shower unit. She found they had installed exactly what I did not want.  The tub unit was fully framed in. They un-framed the bathroom and pulled out the bath unit.

Another time, we had told the builder to raise the ceiling in the second floor bonus room.  Our agent stopped by and found that they failed to lower the ceiling. The tore out the first one and put in a new one.  

You need someone to represent your interests

So, you need someone looking after your interest during construction.  Also, if the home is finished and you can not come for the walk through, your agent can stand in and point out any defects.

After a few years, perhaps many, you may decide to sell.  Who knows your house almost as well as you do? Your agent. Who better to represent you in the sale of your property.