THE HOMEBUYERS GUIDE TO NEW HOMES
WHY YOU NEED AN AGENT WHEN BUILDING A HOME OR BUYING A HOME FROM A BUILDER
Cost to You
Nothing! Any compensation paid to your REALTOR is recognized by the builder as a marketing fee and has no impact on the final cost of the home. The fees for realtors are already factored in by the builder before building the house. Builders desire, expect and encourage buyers' REALTOR participation. The buyers' realtors fees are disclosed by the builder in the MLS where the house is listed or marketed. The builder's rep represents the builder not the buyers.
Savings to You
Are you getting what you're entitle to have ... both in quality and value? Your experienced agent knows what you should receive and what "extras" might be available. There are builder's concessions that are not typically seen or known by the buyers. But, they are seen by your buyers' realtor in the MLS Agent's
Full Page Sheets
Resale...Appreciation & Profit
Give your investment the best opportunity for appreciation at resale. Questions concerning site location, builder, design and decor are important. Your agent knows you are building not only for today ... but for tomorrow.
You Are Represented
With your real estate agent, YOU are represented! Your agent's experience, knowledge, negotiations skills and expertise represent strength and leverage on your behalf. Plus when the builder is done with the community, your buyers' realtor remains as your resource of additional information for future reference about real estate like the tax deductibility of your mortgage interest or property tax or anything related to your real estate purchase. The builders' rep will be gone when the builder is done with the community. It will be hard to know where they are going from there.
10 TIPS TO SAVE YOU TIME AND MONEY
1. Get in Touch with your Agent.
Before you visit your first home, sit down with your agent/realtor and do your homework. You would like to inform the Builder's Rep that you have your own realtor. They will respect you for it. You'll want to be prepared so that you can determine a comfortable price range for your new home. Determine that Price Range or your buying power by letting your realtor connect you to a loan officer to get you pre approved for a loan. Determine the size of your downpayment and convey that to the loan officer. Your realtor can help you determine if your situation would qualify for some federal programs available for you for a lower to no downpayment in the purchase of your home.
2. Sellers' Agents Versus Buyers' Agents
Here's a good point to remember. The sales agent in the model home represents the builder, not YOU. They are known as sellers' agents. As a buyer you can work with buyers' agent/realtor at no additional cost. It is his/her business to best represent your needs by being knowledgeable about home construction, warranties, financing, differences in pricing, quality, even lot selection so that you can get the best value for your money. In fact, this is the reason for the licenses of realtors - in order to protect the legal and financial interests of the real estate buying public or /consuming public.
3. A Builder for All Reasons
Like all tradesmen, builders vary in their fields of expertise. For example there are builders who specialize in craftsmanship, others who are known for their innovative use of space, and those who offer below-market financing or customer attention during construction, etc. and after move-in. You will determine your own specific needs or preferences then your own buyers' realtor may suggest the builder or the community where they build that can address your requirements or specific criteria.
4. Get the Facts About Your Builder
Before making a final decision, it is wise that you and your realtor will check out reputation and financial strength of the builder. Your realtor will get "spec sheets" on home features covering everything from floor plans to energy efficiency, including lot availability and delivery of your home.
5. Check Out the Neighborhood
* Learn as much as you can about the community
* Discover what amenities it has to offer.
* Investigate if financial reserves have been set aside to build or replace major amenities like roads/ street trees, etc.
* Get help from your realtor to review the rules for the homeowner's association or find out if one will be set up and the amount of the dues.
* Your realtor will find out if there is a plan for construction in the area of the adjacent vacant land and if your choosen lot for your house to be built will be affected.
6. Choosing Options and Upgrades
The least expensive the base price of the house is, the more options and upgrades you can add without fear of overpricing it for the neighborhood. Options are items the builder installs during construction, such as adding usable space like sunroom or den. These features can add the most to the resale value of your home. Upgrading means selecting quality above "builder standard". Your realtor will guide you on the selections and how to take advantage of builder incentives.
Often buyers don't realize that there may be room for negotiating price, upgrades or options. For example, your realtor will have some scope for negotiating with the builder who has an almost completed home but has not sold yet. Your realtor will know the builders' offer for discounts or special financing to help close the deal.
8. Be Sure the Contract Works in Your Favor
This is where your realtor can specially and specifically help you. Do not write or sign a contract with a builder's representative without the presence of your realtor who has the expertise in the
real estate documents and contract. He/she will help explain the fine prints in the warranties of the builder and other important items in the contract.
9. Financing - What's Best For You
Some builders especially in high volume communities that place large numbers of loans can offer special financing packages. However, home loan lending is highly competitive and you have many financing choices other than those being offered by the builder. Let your realtor help you shop for the best financing and lender for you to get the right program that will fit to your housing needs.
10. Just Because it's New - Doesn't Mean it's Perfect.
Yes, it's new and typically it's built with modern materials that are durable, low maintenance, stronger, quieter and safer. But because nothing is perfect, even if it's new, consider hiring a reputable licensed home inspector. Your own realtor will normally suggest that to protect your big investment. Moreover, Your realtor will help you create a "punchlist" from what you've learned to address any problems before closing.
In short, the full time smart realtor you choose in the buying process of your home will be such a help in your real estate transaction. Be sure that your realtor is doing the realty services on a full time basis. A part time realtor may not have the time to accomodate your needs and to address the complex issues attached to the purchase or building of your new home if he or she holds a full time job outside. It gives you peace of mind and you'll have an
enjoyable experience during the process when your issues and concerns are being addressed on a timely manner by a full time realtor. That's where we can come in. Give us a call at 919-841-4644 or at 919-676-6917 and experience the difference!