Should you use a REALTOR® when buying new construction? In short, YES! Read on and I’ll give you 7 reasons to use a real estate professional when buying new construction.
Reason 1
When you visit a new neighborhood’s sales center, they’ll be friendly people ready and willing to help you purchase your new home. These lovely folks are good people who are knowledgeable about the different home models, neighborhood amenities, available lots, possible upgrades, pricing, and more. But, stop and think who they work for and who are they representing.
The sales center staff are employees of the builder. They answer only to the builder and represent the company’s bottom line. The only one they are responsible to is the company they receive a paycheck from and as nice and lovely as they likely are, their job is NOT to represent you. If you were in some sort of legal jeopardy, would you go to court without a lawyer or would you ask the opposing counsel if they would represent you as well as their own client? Of course not! You would bring in your own representation; someone who is looking out for you. It is the same with buying new construction. You should have a professional who represents YOU and YOUR NEEDS. This is the first of 7 reasons to use a real estate professional when buying new construction.
Reason 2
Although the sales staff in a new construction neighborhood are (hopefully) knowledgeable about their product, the law doesn’t require that they be licensed real estate professionals which precludes them from being REALTORS®. Only licensed real estate professionals can become REALTORS®. Why should this matter to you? REALTORS® have sworn to uphold a higher code of ethics which outlines duties and responsibilities to clients and customers, the public and to other real estate professionals. REALTORS® are required to work in the best interest of their customers. This is the second of 7 reasons to use a real estate professional when buying new construction.
Reason 3
The appeal of new construction is undeniable – unblemished by the hands of previous residents. You have a chance to design your home from scratch, picking all of the finishes, upgrades, and appliances. Unfortunately, touring beautiful, professionally decorated and staged model homes is like seeing a shiny object in a dark room; it’s very distracting. Its allure can often lead you off-track from what you had actually set out to find and may leave you over-budget. The last thing you want on move-in day is buyer’s remorse!
An experienced real estate professional will sit down with you before ever putting you in their car to help you determine exactly what you want and are looking for in a home and, especially, your budget. If you become distracted by the shiny object, they’ll help to center you by reminding you of what you previously determined you wanted and the budget you set for your purchase. What you see in a model home and what actually comes with the base price they advertise, are two very different animals. Your real estate professional knows this and will do their best to help you understand this as you begin looking. This is the third of 7 reasons to use a real estate professional when buying new construction.
Reason 4
A real estate professional is also an experienced negotiator. In some markets, like the one we are experiencing right now where I live in Southwest Florida, builders may be willing to negotiate the price of new construction and/or offer concessions on lot premiums, upgrades, finishes, and money towards closing costs. A REALTOR® who is knowledgeable about the local market conditions and the area’s builders, will know when and if this is applicable and negotiate on your behalf, often getting you big savings and/or extras you wouldn’t have gotten on your own. This is the fourth of 7 reasons to use a real estate professional when buying new construction.
Reason 5
Real estate professionals keep themselves informed and educated about the new communities being built and ones that are coming soon in the area. They may have knowledge of communities you didn’t know existed or ones that are soon to start development. Builders regularly communicate with the area REALTORS® letting them know of current deals, discounts, move-in-ready homes, and incentives that they may not advertise. If you are looking specifically at new construction, you’ll want this information on your radar; a community that you thought was out of your financial reach may be offering incentives that make it affordable for you. A real estate professional will know or do the due diligence necessary to find out all of the facts. This is the fifth of 7 reasons to use a real estate professional when buying new construction.
Reason 6
There’s no real estate transaction that goes off without a hiccup or two along the way, including new construction. Your real estate professional will be available to you throughout the home building process and see you through to the day of closing (and beyond). They’ll be a constant resource if you have questions and to advise you along the way. The fact is, you don’t know what you don’t know, but your real estate professional is educated, experienced, and knows what questions to ask throughout the process. This is the sixth of 7 reasons to use a real estate professional when buying new construction.
Reason 7
The services of a real estate professional working on YOUR behalf ARE COMPLETELY FREE TO YOU!! The builder pays your REALTOR® to represent YOU! Some buyers are under the misconception that if you go in without representation, the builder will automatically give you a discount because they don’t have to pay a commission. I’ve never known this to be the case. In fact, most likely they’ve just made an extra 3% +/- on the purchase of your home! This is the seventh reasons to use a real estate professional when buying new construction.
I sure hope these 7 reasons to use a real estate professional when buying new construction have motivated you to find a local REALTOR® to represent you. Even if you’ve already gone into see new construction alone and registered on your visit, it’s still highly likely that they will welcome your REALTOR®. Your real estate professional will even make this phone call on your behalf!