New construction has a ton of advantages -open floor-plans, including appliances, sod, and blinds. And they even make it easier than ever to get into a new home with little or no money – what’s not to love? But many buyers make the false assumption that they can save money by not using their own Realtor when purchasing a new home. This is a huge misconception!
Many buyers assume that the builder’s rep will help them with the purchase of their new home. They also assume that working with the internal representation will result in getting a better deal on their purchase.
However, the builder’s rep is working for the builder — not for you! Their success relies on getting the best deal for the builder, who is their employer. They are not looking out for you and your best interests…so who is? Your Realtor will!
When you use a Realtor...YOU are their employer! They will work on getting YOU the best deal possible.
Did you know that the commission for buyer representation is legally part of the purchase price. If you are not using your own Realtor, the builder simply receives an extra 3% from your purchase. Basically, it’s free for you to use a Realtor. Free.
And it’s easy. All you need to do is let the builder’s rep know that you are working with a realtor when you talk with him. If you have a business card, you can leave it with the builder’s rep. That’s all you have to do!
Like I’ve said, your Realtor is working for YOU. Home-builders prefer to monopolize the sale. They may only give you special “incentive” packages if you agree to use all of their representatives: lender, title company and even insurance company! But your Realtor can walk you through this process and make sure you are protected, as well as make sure you are getting the best deal. If you decide to use the builder’s lender, your Realtor can make sure you get a good rate and fair closing costs. Your Realtor knows the standards, and can make sure the builder doesn’t try to go beyond those standards. By bringing in your own Realtor, you’re asking your builder to be on their “best behavior.” Your builder doesn’t want to get a bad reputation, and will want the potential to create a good relationship with your Realtor, who will hopefully bring buyers their way in the future if the transaction is successful.
Here are some simple steps to follow:
Use a realtor who has new home sales experience
Don’t sign anything until you’ve worked out every detail on the sale
Get a home inspection…yes even on a brand spankin’ new house!
Don’t agree to use their lender…shop around first.
Do your research…ask for referrals, looks at homes they have built, etc.
You choose your appraiser…after all you’re already paying for it!
So when you’re out looking at that new development across town…remember to have a Realtor in your corner when negotiating with the builder! It’s a win-win!