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New Home Construction

new-home-buildersShould you have REALTOR representation when purchasing a home from a New Home Builder?

Absolutely.

Please keep in mind that the on-site agents work for the seller, which in this case would be the builder. You should retain your own agent to represent YOU, the buyer. Builder’s contracts are very complex and it would be in your best interest to have someone who understands these contracts look over them with you.

How much will our services cost to represent you?

It gets even better. The builder will actually pay our commissions so your buyer representation is FREE of charge, creating a win-win situation.

If you decide to go with new construction, a real estate agent can be a powerful advocate in your corner as you negotiate upgrades, a move-in date and other terms with the home builder.

Selecting a builder

Shopping for a large production or custom home builder can be a daunting task. Start by defining what architectural styles appeal to you and then seek out the builders in your area who offer those styles.

The builder representative and your real estate agent

A builder representative’s ultimate goal is to sell you a home. His or her role is to provide a wide range of information to help you in your decision-making, from building restrictions, roads, and easements to inspections, warranties, rebates, and upgrades.

A real estate agent knowledgeable in new-home construction will be able to help you wade through all the data and point out the downsides and upsides of each line item. Your agent also can look out for your interests in reviewing the builder’s contract, which often contains more legal jargon than consumer-friendly language.

It’s all about timing

Market conditions greatly dictate a builder’s incentive to make a deal you cannot refuse. When a builder has inventory on his hands, his carrying costs start adding up. When this happens, a builder might be more likely to strike a favorable deal, whether it’s throwing in upgrades or taking a bit off the asking price.

A real estate agent can help you know when market conditions are right for these benefits. Also, watch for builder close-out sales. Builders promote these special events when a new subdivision is near completion but some inventory still remains.

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