While most buyers know they should use a real estate agent when buying a home, they often think they don't need one when considering new construction, but this couldn't be further from the truth. Why should you use a real estate agent to help you purchase a new construction home?
There is a misconception that you will save money by going to the builder directly without a real estate agent. What consumers don't realize is Builders pay the realtors out of a marketing budget. The commission is not tied to the home's price and the builder will not reduce the price of the home by the amount of the commission - the prices of their homes are the same for everyone whether they have a realtor or not. However, most builders rely on realtors to bring in potential buyers and often offer realtor incentives that we can pass along to our clients.
The sales representative of any builder is there to represent the BUILDER's best interest. That means they want to get the highest price, the most options sold, and through the contract as fast as possible. As the buyer, you, of course, want the most options at the best price and you want to make sure the contract protects you. If you rely on the sales representative, your interest will not be represented, you have to have your own real estate agent.
Builders create their own contracts and, as you can imagine, they are written in favor of the builder because they to protect their own interest. Having an agent that can explain the details, answer questions and guide you to an attorney if they believe you need more legal guidance can save you from getting stuck in a contract that isn't best for you.
Your real estate agent can help you determine which upgrades make the most financial sense and which upgrades are best for future resale.
When builders have listings that have been on the market a long time, they will often offer discounts, bonuses or free upgrades. Having an agent that is familiar with the sale representative and on top of these deals will work in your favor.
Builders often want you to use a specific loan company they are affiliated with and usually offer a financial incentives to do so. Your real estate agent can help you find and compare other loan packages that could save you much more money long term.
Many buyers think that buying a new home will help to avoid construction issues and repair issues that may be present in an older home, but this is far from the case. Builders can still cut corners trying to save money. Your real estate agent can help by attending the builder walk-through and recommend a home inspection before closing.
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