15 Reasons to Hire an Agent When Buying New Construction
With today’s limited inventory, new home builds are on the rise, and are a great option. With a new build you can pick the lot, the model and the upgrades you want, everything is under warranty, and you get to be the first person to live somewhere. Additionally, with new homes, the process seems pretty straight forward, you pick your property, you sign a contract, select your features, and wait for it to get done. Because of this perception, many buyers go at it alone and don’t use an agent to help them through the process. However, in reality, stepping into that builder’s sales office could feel very much like walking into a car dealership, you find yourself on guard at every turn, and all you hope for is making sure you don’t get a bad deal. By the time something goes wrong, and you realize that you want someone to help you through the process, it might be too late.
There is a lot more to buying a new home than what was mentioned above, and having someone that can guide you through the building process all while looking out for your interests will make your home buying experience a great one. With that being said, I have put a list of reasons why you should have an agent working for you when buying a new home.
- You need representation. The sales rep in the office works for and represents the builder. Not only that, everyone you come in contact with has the builder’s interests in mind. The preferred lender, the preferred escrow company, the design center specialist, the project manager, etc. You need someone on your side.
- Builders create their own contracts that heavily favor them, an agent will be able to review the contract with you, help you understand all the terms, and help you look out for any pitfalls written into the contract.
- Because builders use their own contracts, it is not widely known that there is room for negotiation. A skilled agent will be able to negotiate terms that represent your interests.
- Agents have access to all the sales information, and can provide you with data on the most recent sales in the development. This way you know if you are getting the home for fair market value or not.
- An agent can negotiate lower amounts for earnest money, and reservation costs.
- An agent can negotiate the terms of a contingent sale.
- Sales reps will push specific models that have been slow to sell, an agent will help you understand why a certain property hasn’t sold, and what downsides there are to a certain property.
- When selecting a lot, model, and design an agent can give you advice on what options would have the best future resale value.
- Help and guidance with upgrades. An agent will be able to discuss with you trending colors, materials, etc.
- The design center is much like the financing department of a car dealership. It is where the builder makes all their money. In a lot of cases, the prices of upgrades are inflated to make more profit, and many home owners are better off hiring an independent contractor to install the upgrades after the home is built. An agent will be able to help you get in contact with different vendors so you can price shop the upgrades. In addition, they can use that information to help negotiate down the price of the upgrades.
- An agent can give you guidance, and negotiate the deposits for upgrades. Most builders require a 50% non-refundable deposit on all upgrades, but a skilled agent can get you better terms.
- Builders usually require you to get preapproved with their preferred lender. This lender either works directly for the builder, or is part of the builder’s company. An agent can bring other independent lenders to the table that you can use, so you can make sure you are getting the best deal.
- Since city building inspectors just do a general inspection when signing off on the building permit, it is important to have home inspection conducted by a state licensed home inspector before closing escrow. Mistakes happen all the time (Ductwork not connected, A/C not charged, water faucets hooked up backwards, etc.) Your agent can schedule a home inspection, and any issues found can be added to your final punch-list of items that need to be corrected before close of escrow.
- An agent can negotiate with the builder if an appraisal comes in low.
- A skilled agent will be present at all meetings with you and the builder, take extensive notes, and make sure all promises and agreements made by the builder are put in writing.
Bonus:
Accompany you on your final walkthrough. These walkthroughs are usually a couple of hours, and builders will overwhelm you with information. In this environment, it is easy for important items to get overlooked. Your agent will take pictures of items that need attention, and make sure all items are checked.
The above list is not by any means complete, but it should give you a general idea why having an agent work for you is a great choice.
If you have interest in new homes, feel free to reach out, and I can help you out.
