Happy August! This month, we are going to answer a couple of really common questions when it comes to purchasing a new construction home. We’ve had a lot of clients buying new construction homes, and we want to make sure you’re prepared if you’ve been thinking about buying one yourself!
Question 1: Why should I use an Agent to purchase a new construction home?
Purchasing a new construction house is usually more complicated and intimidating than buying a resale home. It is important with a new-home purchase that you hire a local real estate agent with new construction experience to represent you in this process. The advantages of having an agent help you purchase a new construction home can make the purchase process less intimidating because the agent has knowledge of the market and new construction products to help find the perfect home quickly, expertise in contract & negotiation, and closing assistance. The builder has a professional representative watching out for his needs, and you deserve the same expert representation.
Buying a new construction home is a little more complicated and time-consuming than buying a resale home. We can professionally guide you through this process and we have experience working with many national and private builders.
It is very important that your interests be professionally represented when you are entering into a contract for a semi-custom or build-to-suit home. We act as the coordinator for a team of professionals that you should have on your side in order to protect you and to ensure you get exactly the home you want! For example, new construction home inspection should be performed by an inspector that specializes in new constructions and include multiple phases. You may also want a real estate attorney to review the builder’s contract. Builders do not use the standard contract we use for resale. They each have a special contract written by their attorneys that may contain nuanced clauses for their advantage.
Question 2: Is there any advantage to not using an Agent to purchase a new home?
No. There is no financial advantage for you to buy directly from the builder. Builders have a “single-price” policy, meaning the price is the same whether your interests are represented by an Agent or not. They have to sell many similar homes in a community. They need to set and hold the price for sales and appraisal purposes. Just as in any resale, the Seller pays your Agent’s fee. This comes out of their marketing budget, not the sales department.
REMEMBER – Builders require that your Agent accompany you on your first visit to the Builder’s sales office, or they may not allow an agent to be added later as your representative. Call us first when you are thinking about buying a home, new or resale. We will make sure it is done right.
Until next month, take care!
– Yien and The Yao Team