Do you really need a Realtor® if you plan on buying a newly constructed home? Sometimes when the real estate market has many new constructed homes, buyers often consider purchasing without consulting a Realtor® first. Nevertheless, the benefits of using an agent as a new construction buyer's representative are many. Here’s our list:
1. FREE Representation. It’s almost never recommended to represent yourself in a court, so why would anyone do it when buying a home? Using an agent for a new construction who will represent you will keep your best interest in mind against a seller who is often trying to maximize his net profit on the sale. An onsite agent is hired to represent the builder and builder’s best interest, not to protect or educate the public. Buyer representation is provided to you at no cost and can help you negotiate in pricing, but waiving your right to representation will only increase the builder's profit.
2. Market Analysis. Professional real estate agents can bring valuable information to even the most experienced buyers. This is especially important when the real estate market changes and there might be information you should take into consideration before deciding on a new community or new construction. Another part of the analysis is focused on features of the house and any potential updates you would like to add. Agents understand how prices fluctuate from quarter to quarter, year to year, and often have the insight on everything from new home constructions, foreclosures, renovated residencies, single family homes, townhouses, and condos. It's important to position yourself for the future resale of the property and usually buyers do not want to be the biggest, most upgraded home in a neighborhood which doesn't support their value.
3. Knowledge. Buyers who do not use agents will wind up paying top dollar to the seller and often without the benefit of comparing what a resale property would cost them. An agent brings this knowledge to the table along with a market analysis, expertise, and close, personal advice.
4. Lingo. Experienced agents know how to speak in a “sales language” to the onsite sales representative and “construction language” to the manager or superintendent overseeing the new construction. The person overseeing the construction is often eager to teach you about your new home, so having an agent as an ally to help translate terms or to ask questions is incredibly beneficial.
5. Expertise. An experienced agent can remind you to inquire about a variety of things with a new home construction. The expertise an agent brings to the table means they can often clarify details of a construction process, appraisal, contingencies, builders warranty, potential issues in construction, down payment, inspections, financing and much more.
6. Cost. The cost of your buyer's representation will be covered by the builder. It's important to visit new communities with your agent or disclose that you have your own representation. This will protect your right to FREE representation later on. If a buyer decides not to use an agent, the seller simply pockets the savings without providing any discounts to the buyer. Waiving your right to representation only increases the builder's profit. It’s a myth that unrepresented buyers can get a better "deal”. Realtors bring prospective buyers to new construction communities, and builders recognize the benefits of not providing any discounts to unrepresented buyers.
7. Advice. Realtors or agents will provide you with objective advice on a number of issues concerning the purchase of a new construction. The agent acts as an exclusive advocate during the sale and can often provide you private, personal advice that can positively influence the purchase and the process. In most areas you will be able to pick from multiple new construction communities offered by different builders. Your agent will help you select best option for you and your family.
8. Contract Assistance. Your agent will assist you with the pricing, terms, and conditions of a contract. A savvy agent will help you navigate the complexities of most contracts drawn up for new constructions. Your agent is not an attorney to interpret builder's contract but they will know all the right questions to ask. This assures your understanding of the new construction process and allows you to make educated decisions.
9. Nothing to Lose. If you do not hire a qualified realtor to represent you, the price of the home will not be reduced. Thus, potential buyers wind up paying more to not have an agent that can help, even if marginally.
10. Ease. Using a qualified agent will allow you to engage the buying process with a clear, stress-free mind and attitude that would otherwise be stressful, complex, and heavy. Agents help explain everything from the start of the buying process to well after the sale, often helping new home buyers with every angle of their purchasing experience.
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