Whether you are interested in buying a new townhouse or apartment like those in the brand new Bridge Park area in Dublin, or want to buy a brand new single family home, here are five great reasons you NEED a realtor to help buy a new construction home or townhouse.
#5 – Builders Have Agents
When you buy a new construction, the home’s builder is considered the seller and the agent representing the builder is called the builder’s agent. The job of the builder’s agent is to get the highest price for the homes the builder is selling, so the agent is not going to be as eager to negotiate down.
If you are interested in buying a new construction, the builder’s agent will be ready to help you with the process. But make no mistake: You need your own real estate agent from the get-go. Even if it seems like plug and play to sign up with the builder’s on-site agent, you’re going to want someone representing your side of the deal. The first duty of the builder’s agent is to the builder, NOT you.
#4 – Buyers Agent (Your Agent)
As a buyer, when you hire an Agent, their duty is to represent you and your interests ONLY. It removes the potential conflict of interest and you’ll come out better than if you had just used the builder’s agent.
It’s a good idea to have your real estate agent accompany you on your first visit to the new construction. Why? Because the builder (aka the seller) will be responsible for paying the commission, and needs to know if you’ll have a real estate agent representing you. So, bringing your agent to the first visit will make it clear that the builder’s agent will be on the hook for paying commission.
The builder is paying a set percentage of the sales price to their agent, which they will have to split with the buyer’s agent. So, having representation to your interests doesn’t cost you anything. You are not going to get a better deal because you don’t have an agent.
#3 – Your Agent Can Negotiate Extras
Do you want upgraded counters or appliances in that new home? Your agent can help you with all those extra perks, amenities, and upgrades. If we are early enough in the process, we can often negotiate with the builder on things like paint color or even the style of garage door, especially if the housing development is in the beginning stages.
#2 – Help Find Financing
A builder may have a “preferred” lender that they will try to steer you to, but your real estate agent can help make sure that you’re getting the mortgage that works best for your situation. Shopping around is always wise, and you don’t want the builder’s agent pressuring you into using their suggested professional, unless it’s right for you.
#1 – Home Inspection
Tempted to forgo a home inspection in new construction? Don’t do it. The number and severity of new-home defects often rival resale home problems. The builder’s agent is unlikely to push for or offer up an inspection, so it’s up to you and your real estate agent to make it happen. Your agent will be familiar with all the necessary paperwork and timelines for making sure you don’t end up on the raw end of the deal.
Remember when you hire a real estate agent to represent you, the agent’s job is to help you get the most value for your money, with the least amount of hassle and frustration.