Buying a new construction home involves a different process than buying an existing home, and some people wonder if they need a real estate agent at all to buy one. While you technically do not need a realtor to represent you when you buy a new construction home, there are a few reasons it would be in your best interest to do so.
To learn more, check out these ways a real estate agent will work in your favor during the new construction home buying process.
While the builder will have a real estate agent that can complete all the necessary paperwork and explain the process to you, remember that their agent will always be working in your favor. When you bring your own real estate agent to the conversation, you now have a knowledgeable expert that is observing the process through the lens of your needs and preferences. This brings balance to the process to make sure the sale is mutually beneficial and there are no unpleasant surprises for you.
You may think the sticker price on the home is the bottom line when you buy a new construction property, but that is not always the case. In fact, many builders can offer various incentives that can be negotiated for, like credits toward closing costs, discounted lot fees, free landscaping, or upgraded interior finishes. When you have a realtor working for you, it's much easier to negotiate for the best deal.
When you work with your own agent, they bring invaluable experience and expertise to the table, understanding the local market. They can tell you whether other local builders are offering a similar home with better finishes or incentives, and can help you understand the demand for homes in your area. They may also be able to provide advice about how much to invest in upgrades when considering resale value in your local market.
In many cases, a builder will recommend a mortgage company they either own or are affiliated with. In-house financing or affiliate financing can sometimes be worthwhile, usually associated with an incentive of some kind from the builder.
However, in some cases, the builders' incentive to use their recommended mortgage broker won't be worth what you ultimately pay for your mortgage. When you have your own real estate agent, they will have a network of local mortgage professionals they can recommend to help you get a second or third quote and find out if the builders' financing really is the best deal.
Even when you buy a brand-new home, it's always best to have a home inspection completed. While everything in the home will be new, there is still the potential for errors and mistakes to take place, or for someone to cut some corners.
Don't assume that new equals perfect. Instead, lean on your realtor for a recommendation of an independent, licensed home inspector and work as a team to make sure the home is being delivered to you as it should be.