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Do You Really Need a Realtor when you buy New Home Construction?

Reasons you should have your own Realtor: 
  1. Salesperson does not Represent You. That friendly and helpful salesperson you found in that model home works for and represents the builder and the builder's interest only.  NOT YOU.  We don't believe that the salesperson is out to get you, but in the end they do not represent your interests.  A Buyer's Agent does.
  2. Have your Exclusive Advocate.  Shouldn't you have your own independent representation?  A Buyer's Agent is your exclusive advocate and will help you understand your contract and obligations including when to schedule construction inspections.  A Buyer's agent can give you objective professional advice and insight during all phases of the prcess, such as contract, construction, walkthrough and closing.
  3. Sales Prices.  While the builder's salesperson will always give the appearance that sales prices are non-negotiable, an experienced Buyer's agent can use recent and historical sales data to aid in your sales price negotiations.  We can run a Competitive Market Analysis (CMA) to base a reasonable offer.
  4. Let the Pros Handle It.  Real Estate is a huge investment. Why not use a professional that has years of experience and knowledge to put to work for you? It is like trying to be your own attornery.  Not usually a good idea.
  5. Buyer representation is free to the Buyer.  A Buyer's agent costs you nothing as the builder has allocated a sales commission (usually an advertising expense) to be paid to a buyer's agent.  When a buyer does not use a Buyer's Agent, the builder either pays their own salesperson a higher commission or pockets the savings for theirself. You are NOT paying more for the home if you use a Buyer's Agent.  And, you will not save that amount in sales price.
  6. Access to the MLS System.  Many times the builder will run a temporary discount on a particular model or lot.  The salesperson will update the Buyer's Agent remarks in the MLS system that the builder will consider an offer $10,000 less than asking price.  But this information is not represented in the Sales Price that an online buyer or an unrepresented buyer will see. The salesperson is not legally bound to tell a buyer who walks off the street about the price reduction.  The salesperson is only legally bound to make the sale that is in the best interest of the seller.  So, the only way, in this case, to know about the price reduction is to have a MLS member (Buyer's Agent) represent you.




Using a Builder's Lender 
 

Just because a builder wants to give you "incentives" to close a deal (like a washer, dryer, upgrades) does not mean the loan you are getting is the best loan for you.  You probably should shop around.

This is why so many buyers were talked into bad loans.  It's not because their Buyer Agent talked them into it... just the opposite.  Majority of the new construction buyers were NOT represented by a Buyer's Agent.  The builder and their lenders were conspiring to put people in homes they couldn't afford, loans that were mainly to the benefit of the builder not the buyer.

How many of those foreclosures were with the buyers who had no Buyer's Agent?  Many of them!  Every wonder how a new construction house appraises for the builder, but when you go to resale your home, it doesn't appraise?  Ever think how does that happen? 

Take a look at how a few major national builders have paid restitution for unfair loan practices. 

Work with a professional ...a Buyer's Agent!



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Check out our Buyer Resources page for more great invaluable information!