Important Reasons To Hire A Buyers Agent For New Construction Homes
1) The Builder’s representative is often not a licensed Real Estate Agent
… but an employee of the builder. Their legal obligations to you as a Seller Representative for New Construction Homes – are different than what the Real Estate Commission requires of licensed brokers for “Buyer Representation”.
The problem is that the builder’s representative is asking many questions which buyers shouldn’t be answering that expose the buyer’s motivation for buying the home. Buyers are lulled into answering feeling like the builder’s representative is nice and professional. That type of information would not be accessible to the seller in a situation where the buyer is buying a used home because the buyer’s agent would know the info but not share it with the seller’s representative.
2) The Buyer’s Agent Represents You in the Transaction and Not The Seller
…Having Buyer Representation and an Agent working for you will make all the difference in the world. You have a full-time job, how else could you afford this property? The Rise Up Real Estate Group Team will be there for you, even when you can’t. We will explain the contract to you. We will point out where you are exposed and when you can lose your deposit. As your Realtor, we will be there throughout the process. We may even find another new construction home that you just may like even more that the home a builder would pressure you to buy without looking elsewhere.
You will have many decisions to make during the process such as the grade and quality of your kitchen cabinets, bathroom tiles, flooring. As your Realtor, Rise Up Real Estate Group will point out upgrades that will retain their resale value and not just the most expensive material. Things that you should have and things that are not important. And most importantly- things that you can afford. Also, your agent will explain when you get an independent home inspector…again, all part of Buyer Representation for New Construction Homes.
3) The Builder Sales Reps Represent the Builder in the Transaction
Often builders have their own agents on site to answer questions, assist people who walk in, and ultimately help with a purchase. Builder reps provide a valuable service: They can explain differences between models and floor plans and share information about financing options, upgrades and specials. But it’s important to remember that builder reps represent the builder, as they are contractually obligated to do. “Realtors® are trusted resources for real estate information and can help home buyers navigate the increasingly complex home-buying process,” said National Association of Realtors® President Gary Thomas. “The buyer agency agreement ensures the buyer that his or her Realtor® will represent the interests of the buyer alone and not the seller.”
4) Fiduciary Responsibility
One of the most important considerations for any buyer is fiduciary responsibility. When you retain the services of a Realtor®, their responsibility is to you. That means you have an expert who is looking out for your best financial interests, an expert who’s contractually obligated to protect you. As your Realtor®, we can help you navigate the new-construction contract; help you understand how specific clauses, riders and upgrade options affect you; and make sure you know what you need to before you sign on the dotted line.
5) Communication
…is the biggest complaint that buyers have with new construction. Buyers have an understanding based on what the sales representative says and then the buyers move on to deal with the project manager who actually builds the house. Sometimes the builder will then tell the buyer something different and if there is nothing in writing to prove it was included in the contract, it is difficult to enforce. Examples of items are drainage, grading, upgrades, how many steps to the front door and from the garage into the house.
6) The Buyers Agents Knows the Local Real Estate Market
…Your agent has worked with builders before handling Buyer Representation New Construction. Rise Up Real Estate Group knows which ones are dependable and which projects are a good value. They can tell if that $5,000 credit the builder is giving you for closing or “free” upgrades is really the best deal for you. In most cases, that $5,000 is tacked on somewhere else along the way without you realizing it- either with higher lender fees or title insurance costs.
7) You Are Already Paying For It
…Especially in this buyer’s market, the builder has already budgeted into the sales price the cost of paying a buyer’s agent. Most buyers don’t know this. So what happens when the buyer does not have a buyer’s agent when buying the property? That builder has just made more money in the sale of your home. If you have not negotiated the price minus the amount of the agent’s fee, the builder will keep it for themselves. But they haven’t told you that. So, if you are already paying for it, why wouldn’t you want to hire a real estate agent to represent you? Most importantly, you need to have your Rise Up Real Estate Group Agent with you BEFORE you make that first visit to a sales office. If you decide you need a buyer’s agent after you have “registered” with the builder, any Buyers Agents fees will come out of your pocket.
8) Final Sales Price
…Buyer Representation New Construction Home Owners need help understanding what their final sales price will be after they make all their selections. The process in our area starts with the buyer signing the contract and then the buyers go to the design center to select cabinets, appliances, etc.. Having a buyer’s agent who attends those meetings helps ensure that the information provided by any of those builder employees is documented. Buyers also need help understanding what selections and upgrades help resale and which ones just help the builder’s profit margin.
9) Zoning and adjacent land
…in a community is a very important consideration. Builder’s representatives practice how to present less desirable aspects of a lot or community to buyers to minimize questions and objections. A good Rise Up Real Estate Group Buyers Agent is going to explain to you how those aspects affect the resale value and how the community might change.
An example is land not owned by the builder that is currently undeveloped. It could be in the process of being developed or could be developed in the future. What type of housing or commercial buildings or the proximity of future roads that might be built is very important information a buyer should consider before purchasing a new home.
10) Contracts
…Builders usually use their own contracts that are drafted by their attorneys and are clearly written to benefit the builder over the buyer. Contracts on used homes usually use a contract drafted by the state bar that is designed to be more equally weighted between the buyer and seller.
Even if you visit a new home community before you realize you need a Rise Up Real Estate Group Buyers Agent, it is a good idea to get a buyer’s agent involved before you make an offer. The process of buying a new home is not as simple as you might have thought. But that doesn’t mean it will be difficult. We make the process simple and easy. Rise Up Real Estate Group is here to help. Rise Up!
Original article found at http://www.exploredavidsonhomes.com/buyer-representation-new-construction-2/