Hiring a real estate agent to represent you in new construction is completely necessary! The agent is free and will save you both time and money. You have the benefit of professional oversight on your new home’s construction while paying a lower price and getting upgrades in your home.
Many buyers assume that they do not need an agent for a real estate transaction with new construction. The truth is that it is one of the most critical times to have a real estate agent representing you! Here’s why:
#1: You need representation. The builder is using a professional agent to represent him; you should bring professional representation as well. You do not want to be in the position where you don’t have your own confidential agent fighting for you. When the builder starts pushing your move-in date back, your agent picking up the phone to negotiate. You’ll have more leverage if you have your own, private representation.
#2: It’s a real estate transaction. Many people assume that building a home is a different type of transaction. In truth, it’s a real estate transaction where the builder is selling you the property once it’s completed. There is no reason to treat it unlike any other buyer/seller relationship. You want to set the tone with the builder that you have a professional on your side that is watching for anything that may seem iffy.
#3: You have someone managing the whole process from start to finish. Speaking of move-in dates, how about the whole list of meetings and deadlines leading up to the closing? Don’t get caught in a legal nightmare because you missed submitting certain paperwork. An agent monitors the entire process and makes sure that everyone is meeting the deadlines set in the contract. Your agent will also make sure that the builder is consistently giving you documents that are legally required by certain deadlines.
#4: Negotiation secrets. Builders will rarely negotiate on price for new construction. As a buyer without representation, you might just walk in and accept that. What REALTORS know is that there are hidden gems that you can negotiate for like upgraded countertops or even a pool!
#5: The construction manager. His whole job is to get the job done in the interest of the builder. Before the closing, the buyer will need to do a walkthrough with the construction manager. This is where you need a professional who has done walkthrough after walkthrough of new construction and knows what to look for. So many things can slip through the cracks! I have found ….
#6: Need to get out of your contract? Things happen and real estate deals fall through. You’ll need an agent who knows the laws and can get you out of a contract that is no longer in your best interest.
#7: It doesn’t cost you a penny! You’re not paying the agents in the transaction. The seller is paying the agents. You get free representation. Don’t forego your biggest asset in the deal!
Which agent is right for you? See our article on How to Choose an Agent.