This week, real estate sales consultant Thomas Gremo of The Jason Mitchell Group gives his advice on the benefits of having a realtor when buying a new construction home.
Would you try to fight a court case without a lawyer? Then why would you buy a new construction home without having someone on your side to represent and protect you and your purchase? Buying a home is often times one of the biggest investments one will make in a lifetime. It is important that if you have never purchased a property, or even if you have, you have someone on your end of the deal that protects your money and looks after your best interests during the process. I often have strangers, clients, friends and even family ask my why they would need the assistance of a licensed realtor when purchasing a brand new construction home and there are plenty of reason, but I will touch upon 4 of the most important reasons.
1). Reputation of the Builder. First and foremost, You want to make sure the builder is a reputable builder. There are many builders these day that cut corners, don’t have quality workmanship, or have bad reputations in the industry. A good experienced realtor will know the good products from the bad, and will be able to point you in the direction of the right builders and keep you from purchasing from the wrong ones.
2). Help Negotiate and Review Contract. The most important thing to remember when walking into a model home or a new community sales office is that the agent on staff works for the builder of the community. If you go unrepresented, it does NOT mean you will be getting the home cheaper by saving money on sales commissions. Commissions are already worked into the budget of the home and the sales agent, who is representing the builder, is like going to double end commission on unrepresented buyers. If the sales agent represents the builder there may be some misrepresentations on their behalf when going over finishes or contract information. It is extremely important to have a licensed realtor on your side to have your back and protect your best interests. Having your own realtor can run comps for you, help assist you with negotiating the sales price, help find the right lender, work in builder incentives and go over the contract with you which is often times much different than a resale home contract. A realtor will also make sure your earnest money is protected as long as possible.
3). Find the right home within the community. Ever been on a car lot and seen the cars that are showcased in the showroom? A lot more upgraded than the car you typically wind up taking home. Builders always showcase their best product and the model is not always a great representation of the finished product. Realtors are experienced and know which questions to ask. When you’re walking through the model you want to find out what finishes are standard and which are upgrades and will cost you more money. Not all builders are the same and some upgrades for one builder could be standard in a home for another builder. Also, the model can sometimes be the best purchase because you are getting a fully upgraded home for opening phase pricing. You may have to lease it back to the builder for some time, but this could work to your benefit and your realtor will know how to work that out on your behalf.
4). Assisting with the process and upgrades. Buying a new build can be a long process from start to finish. You want to make sure you choose a realtor who will be there during the whole process. A good realtor will help you schedule inspections through the process and keep you informed with deadlines. They will also help point you in the right direction when choosing upgrades and finishes. They will let you know which ones will get you most bang for your buck for future resale value and which ones may be cheaper for the homeowner to complete on their own. They will try to keep the builder on a specific timeline and they will also help you from over-upgrading the home. Always make sure to keep your real estate professional in the loop when considering a new build. Remember, it is their job to assist you with the purchase of your home and it is never a waste of their time to show you a home. You always want them to accompany you on the first, and ALL, visits to the new build community. Many builders require you to take them on the first visit or they will not allow them to help you with the remainder of the process. Knowing you have a professional on your side who will help protect your investment, money and time will be very reassuring during a process that typically takes months to complete. Make sure you are being represented!
If you have any questions or need any help with the purchase of a new build call me at (774) 272 – 1194 or email me at firstname.lastname@example.org. I’m happy to assist!