Using a Realtor for New Construction
Why would you (a homebuyer) need a Realtor to represent you when purchasing a new construction home? There are many reasons for this, and most (all!) have to do with protecting YOU!
First things first: One common misconception is that the sales representative at the builder’s office is there to represent you. The reality is, the sales associate there represents only the builder and the builder’s interests. They are there to get the best deal for their employer, the builder. By hiring your own Realtor, you have independent representation that is concerned with protecting YOU and your interests. This includes having someone on your team that will help you understand your contract and upcoming obligations.
Second, there is a very good chance that the homes listed on their website as “available” or “coming soon” are not the same price as the beautiful model home you toured. You will definitely be impressed with the model home’s upgraded kitchen, beautiful hardwood floors, pendant lighting, etc., but these are likely all upgrades that will add on thousands of dollars to the first price you saw. Your Realtor can help navigate the costs of all your desired upgrades, while ensuring that you are not overpaying. Additionally, if you use a Realtor from the get-go, he/she will be able to direct you to neighborhoods that fit your budget for both new construction and upgrades from the beginning.
Third, you should not feel pressured to use the builder’s “preferred lender.” To be clear, there is absolutely nothing wrong with these lenders! However, the builder and their lenders have a working relationship where it is beneficial to both of them if you are a mutual customer. However, its not necessarily beneficial to you. When working with a qualified and experienced Realtor, your agent can direct you to a few different lenders they have good experiences with in the past that make the mot sense for your specific scenario. Many times, the preferred lenders’ advertised deals can be closely matched (or beat!) by outside lenders.
Lastly, as a buyer, Realtor representation is priceless. No really, its free! The builder pays the commissions for both their sales representative and the buyer’s agent. Why not utilize the knowledge and experience of a Realtor to your advantage?