NEW HOME CONSTRUCTION
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9 Questions To Ask Your New Home Builder
When you’re thinking about buying a new home, you want to ensure you select a trusted home builder. Building a home is a large investment and the process takes months, so you definitely want the builder on your side. We have compiled a few questions for you to ask your home builder. Asking these questions will help you better understand the building process and set the right expectations for both you and the builder. Click here to see this list.
Buying a New Construction? Why You Need Your Own Real Estate Agent
When you are house hunting, the appeal of brand-new home is undeniable. You get to be the first to live in this pristine home that is filled with new appliances and finishes that are maybe ones you got to personally pick that fit your style. Another big allure is hopefully you won't have to worry about making any cosmetic or structural upgrades for years.
If you are interested in buying a new construction, the builder's agent will be ready to help you with the process. But please understand, you need your own real estate agent from the outset. Even if it seems easy and best just to sign up with the builder's on-site agent, you're going to want someone representing your side of the deal.
What is a builder's agent?
When you buy a new construction, the home's builder is considered the seller, and the agent representing the builder is called the builder's agent. The builder’s agent will always have the builder's best interest in mind.
After all, the job of the builder's agent is to get the highest price for the homes the builder is selling so the agent is not going to be as eager to negotiate down.
Why you should hire your own real estate agent
It's a good idea to have your real estate agent accompany you on your first visit to the new construction. Why? Because the builder (aka the seller) will be responsible for paying the commission, and needs to know if you'll have a real estate agent representing you. So, bringing your agent to the first visit will make it clear that the builder's agent will be on the hook for paying commission. Some builders might even refuse to pay your agent a commission if you don’t register the agent the first time you visit the home on a new construction site.
As a real estate agent my job is to help you get the most value for your money, with the least hassle. When buying new construction, here’s what your real estate agent will help you with that you might miss out on if you stick with the builder’s agent:
Negotiating extras: Want upgraded counters or appliances in that new home? Your agent can help you with all those extra perks, amenities, and upgrades.
Recommending financing: A builder typically will have a “preferred” lender that it will try to steer you to, but your real estate agent can help make sure that you’re getting the mortgage that works best for your situation. Shopping around is always wise, and you don’t want the builder’s agent pressuring you into using their suggested professional unless it’s right for you.
Overseeing a home inspection: Tempted to forgo a home inspection in new construction? I recommend you don’t do it! The builder’s agent is unlikely to push for or offer up an inspection, so it's up to you and your real estate agent to make it happen.
Builders pay the Agent's commission!
That's right, the builder will pay your agents commission, nothing you will need to . This means you will have someone in your corner looking out for your best interests and negotiating the best deal for you. Why wouldn't you want an agent to represent you and ensure you receive the best deal possible?
Finding a local real estate agent who is experienced in negotiating with builders is going to be one of the most important things you do in the home buying process. You must make sure that your agent is someone who is going to work well with you. You are also going to want someone who is going to explain everything.
Once you’ve selected an agent, it’s time to develop a plan. What criteria are you looking for in your next home? Your agent will be able to help you figure out your wants and your must have’s. Now that you have your team together, it’s time to begin researching different builders in your area.
It's important to understand that looking at homes online versus in person is a completely different experience. For new construction, this article rings true because chances are the pictures you're looking at are of a home that hasn't even been built yet!
How the builder's agent can help you
All that said, the builder's agent can be a valuable resource for learning about your potential new home.
They are knowledgeable about the construction and available amenities, as well as the housing development and general community vibe. You can rely on the builder's agent for background information—just don’t make this individual your sole point of contact on the buying and selling process.
Everyone wants to walk away from buying a home—whether it be a new construction or not—with peace of mind. Having a real estate agent in your corner will help facilitate that. They can save you time, money and stress.