“Why do I need an agent when the Builder’s Sales Rep is on site and can take care of it?” That question and line of thinking has cost home buyers thousands over the years. I’m going to show you why this is flawed thinking and how your own agent can actually save you money. Here are the top 5 reasons for using an agent when buying new construction.
1. It’s Free!
That’s right, It doesn’t cost you any money. In fact, there is a good chance that having an agent on your side will save you considerable money when working with a Builder. Not only can they help you negotiate the purchase price, but they can help you negotiate the cost of upgrades. Some buyers have the belief that the builder will reduce the cost if they don’t have to pay a commission for a buyer’s agent. This simply isn’t true. The Builder’s Sales Representative, and Builders for that matter, prefer to have a Buyer’s Agent involved. Having a Buyer’s Agent frees up the Sales Representative to keep marketing the new homes. Additionally, introducing a Buyer’s Agent allows the Builder to tap into the pool of potential buyers agents have.
2. Builder’s Agents Are not On Your Side.
The on site Builder’s Sales Representative doesn’t work for you, they work for the Builder. This means that all of their decisions are made with the Builder in mind, not you. Having your own Agent with you is critical. Not only will they advocate for you, they have a fiduciary responsibility to act in your best interest. It really pays to have an agent on your side when purchasing new construction.
3. Objective Decision Making
There are many choices you will need to make once you’ve signed the contract relating to upgrades and features of your new construction home. It’s so easy to get caught up in the excitement with the Builder’s Sales Representative, however upgrades add up quickly if you’re not careful. An Agent working for you will help you objectively choose the upgrades that will add value to your home, and are important to have. Furthermore, they can offer advice on which upgrades you can have completed yourself, in lieu of the builder, to save you money. Remember, when buying an existing house, what you see is what you get. For new construction purchases, you’re buying something that doesn’t exist yet. It is wise to have an experience agent on your side when purchasing new construction.
4. Resolving Disputes that can and will arise with the Builder
Like it or not, disputes are common in any real estate transaction. Even the most experienced of buyers/sellers are not immune from this. In my experience the chance of a dispute rises exponentially when dealing with buying new construction from a Builder. Their contracts are largely one sided and protect the Builder by giving flexible terms without penalties for themselves. Buyers on the other hand are held to strict deadlines and are subject to major penalties should they not meet all of the terms of the agreement by certain deadlines. Having your own agent can greatly reduce the occurrence of these disputes or at the very least mitigate them and save you money.
5. Coordinating the Deal
There are several people that are instrumental in the purchase of a home. It’s no different for new construction transactions. The Builder’s Agent will help you with signing the contract, and selecting upgrades. The lender is responsible for taking the loan application and dealing with underwriting issues so the loan will get funded. The title company is responsible for title searches, issuing title insurance, disbursing the funds, and preparing the closing documents. If one of the three fail to do their job, the transaction cannot go through. Having an agent representing you can elevate anything that falls through the cracks. Your agent will keep in constant contact with everyone and be able to identify an issues early enough to have them corrected prior to the closing date. A delayed closing always costs more.
If you’re looking for a new construction home, please check out the link below to see one of Broward’s Best New Construction Projects, Watercrest at Parkland.