Why You Need a Buyer’s Agent
Are you considering a new construction home? If so, you need a buyer’s agent to represent you. Someone that will make clear all the information the builder and onsite sales agent are providing. An exclusive buyerâ€™s agent is your ally when purchasing a new construction home. Whether it is purchasing the lot and having the home built or purchasing standing inventory in an existing community, a buyerâ€™s agent will guide you from lot selection to upgrades that will enhance the value of the home for future resale.
Onsite sales agent and the Builder
The onsite sales agent represents the builder and looks out for the builderâ€™s best interest. This could the price of the property, time to build the home, what is included in the price such as stainless steel appliances or black finish. The onsite agentâ€™s job is to sell you, not to make sure that you are getting a good deal.
Negotiating with the Builder
Builders will negotiate in todayâ€™s buyerâ€™s market. It may be the price of the home or the upgrades in the property that the builder is willing to negotiate on. An experienced buyerâ€™s agent will know the questions to ask and offer you options on how to approach the builder and onsite sale agent for the best deal.
What if You Build?
Sometimes you’ll find a neighborhood you love and the builder will have a floorplan you love on a lot you love and the home is almost finished, so all you have to do is pick your carpet and boom, you close and move in within 30 days of contract. But this requires a lot of things to fall in place; and in today’s economy, builders are not building many “spec” (speculating) homes, gambling that the right buyer will come along at the right time and will love the home they are building. Therefore, in today’s market, you most like will be building a pre-construction home, meaning that you will be able to select the lot you want to build on, the floorplan you want, plus pick the elevation (how the front and roofline looks), colors and options you want, many times from the builder’s available selections. The whole process can seem overwhelming unless you are working with an experienced agent to help you thru the process.
Preferred Lenders Represent the Builder
Many builders work with preferred lenders and these lenders offer incentives such as mortgages with no closing cost. By working with builderâ€™s lender, you need to make sure the interest rate and other terms of financing are competitive. Since all mortgages are not the same, taking the time to talk with multiple lenders is extremely important. You want to be sure that the mortgage on the property is the best fit for you now and in the future. Working with a lender you are comfortable with and can rely on should be a factor in your decision. Your buyerâ€™s agent will know the questions to ask of a builder’s preferred lender and can also recommend other lenders to talk to, plus can help you compare the costs of one lender versus another.
The Bottom Line
As we previously stated, if you haven’t been thru the process before, building a home without an experienced agent to guide you thru the process from selecting the best lot available, negotiating with the builder, staying within budget by being smart about your upgrades, choosing a home inspector and scheduling your inspections, working with the builder and on-site agent thru any issues, choosing the best lender and loan, going with you to walk-thrus, etc. Then finally, three to five months later, you arrive at the attorney’s office for a smooth closing. And your agent is paid for all this work by the builder, at no additional cost to you. Homebuilders do this because they need the agent community to bring their clients and have that cost built in as part of their overall marketing budget.
So be smart if you are thinking of buying a new home; you won’t regret getting that experienced set of extra eyes to help you reach your goal!