For active homebuyers, new construction can be a draw for a multitude of reasons, most notably because these homes are low-maintenance and technologically modern. Their desirability is on the rise: a recent Home Shopper & Buyer Insights Study found that 59 percent of active home shoppers strongly consider a brand-new home offered by a builder - a 20 percent increase from just three years ago. When you walk into a model home, you’re greeted by a number of professionals that are highly capable and experienced in closing transactions; these salespeople work for the builder. If you are looking at new construction, it is imperative to bring a Realtor you trust when you visit any development. There are number of reasons you should have someone on your side who is capable and experienced to represent you.
You want to make sure that you are getting the full picture of the development, and a clear perspective on what makes various plans and locations within a development more, or less, likely to appeal to buyers if you choose to sell in the future. A home is an investment, and knowing what makes that investment more or less attractive to future buyers can be tough to know, especially if you are staring at a parcel map in an office in a development in its early stages. This is where a professional can help you to understand what the differences can be in houses with similar floor plans and amenities.
Once you have decided on a property, there are still a number of variables that go into negotiating the transaction. The price of the property is typically not negotiable, however, the builder will often offer incentive packages on design upgrades, such as flooring, lighting, tile work, or appliances. Often the builder is working with a preferred lender who streamlines their escrows and gives priority to their deals. In exchange for using the in-house lender, the builder will offer other incentives and discounts on the loan. Discounts and incentives are often packaged into A or B type options; it is important to have a professional explain them to you, and help you decide which options make the most sense for your specific needs. In other cases, your Realtor may be able to connect you to a lender that offers superior programs to the ones offered by the builder’s mortgage company.
The most important reason for bringing in a Realtor to represent you in the transaction is that the sales people working for the builder, work for that builder. They have a fiduciary responsibility to represent the builder to the best of their ability in the transaction. You want a representative on your side doing the same for you. Builders understand that having agents on both sides of a transaction is important, and build a commission into the cost of each home to pay for this. They will pay the agent you choose to represent you. If you forego an agent, they don’t credit that money to you in the transaction, it merely goes into their pocket. The builder will pay for you to get professional advice, but they won’t tell you to do so openly.
All of these elements make it clear that having a Realtor represent you in every real estate transaction, including new construction, is a very good idea. If you or someone you know needs help with their transaction please contact me, and I will be happy to assist.