Monthly Archives: October 2014

New Homes and Buyer Agents

Do you need an agent when buying a new home?

Some people think that they do not need a Realtor when buying a new home. The sales rep at the new home site works for the builder and represents the builder’s interest. When buying a home, you should have a professional looking out for your interests as well. Since nearly all builders offer to pay the real estate commission for Realtors, it is certainly better to have a Realtor representing you.

New homes sales conditions often reflect the local markets. When sales are slow, builders are more willing to negotiate and a good Realtor can help you getter a better price. If sales are going great, even if a Realtor can’t help you get a lower price, your agent can still assist you with the purchase process by explaining the builders’ contracts which will heavily favor the builder, by recommending a good home inspector, and by making sure that you have a pre drywall inspection option put into the contract. A Realtor can advise you as to what options will be best for you from a future resale stand point. And even if a price reduction is not an option, a Realtor might be able to help you reduce your option or closing costs. A Realtor can help you with lot selection and point out things to look out for such as poor drainage or nearby power lines. A realtor can help you with many other things like garages that are too small for your car or truck and considerations such as the view which may end up being different than what you expect when all of the homes are finally built. One of my clients bought a townhouse with a relatively short garage that would not accommodate his pickup truck which stuck out past the door by 2 feet. Since there was lots of open parking he bought the house anyway, but because I had him try to park in a model home garage before his unit was even started, he at least knew what to expect. I know of another individual who bought a house with a garage that had a lot of water flow under the door every time it rained because he was at the bottom of a hill. He bought without an agent who might have warned him of the potential danger.  Depending on the situation, and experienced agent can help you in a lot of ways.

Make sure you take your agent with you when you first visit a new home site. Some builders will not work with an agent once you show up and register without one. When they can builders usually would like to save the commission and work with an unrepresented buyer.