Buying a home from a new home builder is a fun, exhilarating experience. However, it can go awry for you, the buyer, if you don’t follow this piece of advice: use a Realtor.
Why Do I Still Need a Realtor?
You’re probably thinking that you don’t need a Realtor when buying from a new home builder, and that is understandable. After all, you found the home and know what is going into it, right?
The first thing to know is that the sweet, ‘helpful’ person working in the builder’s model home works directly for the home builder, not you. That employee’s primary purpose is to sell the home and sell it for the highest price possible. They don’t represent you at all; they have their builder’s best interests at heart. Sales agents may want you to have a nice new home, but their primary job is to get their sales numbers up.
Having a Realtor with you means that you have someone in your corner. They know what to look at when determining a home’s value. Realtors understand the value of things like location, types of upgrades needed (as well as what you don’t need to pay for), comparable home sales to see if you’re overpaying, and more. They also help guide you through the tedious process of working with a new home builder and know what to expect.
You Won’t Save The Commission
Many buyers think that if they don’t use a Realtor, they can use that agent’s commission to reduce the price on the home they want. This couldn’t be further from the truth. First of all, a builder hates reducing any sales price. Builders want to keep prices as high as possible so their future home sales can also be priced high. Experienced Realtors have knowledge on how to negotiate for a lower home price.
Additionally, agent commissions are built into the builder’s marketing budget. This is important because it means that commissions are already accounted for, regardless of an agent is used or not. Therefore, it’s in your best interest to use a Realtor and have them negotiating a better price for you.
Realtors Have Experience
Experienced Realtors have guided clients through the new home buying process many times. Because of this experience, they know what to expect with the long, exhausting contracts (sometimes 40+ pages long!) that builders have buyers sign. Some builders and their sales agents might want to keep critical information from you. Don’t just sign your name on the dotted line without fully understanding what you are signing. Buyers that make this decision might get stuck with unfortunate circumstances. Consulting with a Realtor can help you understand your liabilities with new home builder contracts. Real estate agents are a source of valuable information on what to do and not to do during this process.
There are many more benefits of using a Realtor with new home builders that we didn’t discuss here. If you are considering purchasing from a new home builder, contact Baker Realty today. We have experienced Realtors ready to guide and help you through working with new home builders.