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Real Estate Tips and Tricks.
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Do I Really Need A Real Estate Agent When Building A Home?

4/20/2017

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As real estate agents, we often come across the question, “Do I really need an agent when I am building a home?” Many go it alone, thinking they will save money and hassle without an agent. This a huge misconception! There a lot of details when it comes to the transaction of purchasing a custom, new home. You are going to want a professional on your side.  
Below are six reasons why you get a qualified agent when building a home. 

It won't cost you a dime. The biggest fallacy that many believe is they will save money without having an agent. The truth is that the agent’s commission is paid by the builder. You aren’t losing money. In fact, you are losing out if you don’t hire an agent. Who doesn’t want a free real estate agent? 

Agents are creative negotiators. Builders are often reluctant to negotiate on price. Instead, they may likely negotiate upgrades on the “back end.” A great agent can research the builder’s negotiation style and can come with a strategy on approaching the builder. 

Get everything in writing. Agents can help spell out terms based upon negotiations. This includes things like how the home will be finished, what happens if construction is not completed on time, upgrades, guarantees, etc. Verbal conversations are not binding, so everything must be in writing to look out for your best interest. 

Get the home inspected. New homes have problems too. Ask your agent for a quality inspector to make sure everything is safe and up to code. Your agent can investigate and plan the inspection process and your rights in the agreement to realist repairs or terminate the agreement. 

Find out what’s covered. Many new homes come with a warranty from the builder, but not warranties all warranties are created equal. It is important to what is and what isn’t covered. Your agent can help you obtain warranty information early in the process so your offer documents can be prepared to address any corns upfront. 

Think about the future. Most builders place the responsibility on the buyer to be aware of neighborhood or community dynamics related to other development such as traffic planning, neighborhood development, etc. Will your scenic view be there in five years? What is the history of the homeowners association? Your agent can help write a review period into the contract to investigate the area prior to submitting an offer. 

Thinking of building? We would be happy to speak with you before you get too deep into the process. Contact our office today.  
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