Fresh paint, new flooring and shiny appliances are just some of the irresistible features of buying a newly constructed home. Not to mention the fact that you will be the first to live in this home where there is no signs of a previous owner. Everything is pristine and the thought of remodeling or updating your home will not be a topic for many years.
When you enter the model home there will be the builder's agent eager to help you with the process of buying a newly constructed home. Although this agent will entice you with what appears to be a stream lined process - make no mistake that every buyer needs their own real estate agent from the very beginning to represent them on their side of the transaction.
What is a builder's agent?
When purchasing a newly constructed home the seller is the home builder. The builder's agent is the person who represents the seller in the transaction. The builder's agent will always have the builder's best interest in mind. The job of the builder's agent is to get the highest price for the home and to protect the builder throughout the process.
Why should you hire a real estate agent?
It's very important to have your real estate agent accompany you from the very first time you visit the new construction site. Not only does it send a clear message to the builder's agent that you have your own representation, it also obligates them to pay your agent's commission. You read correctly - hiring a real estate agent to represent you when buying a newly construction home usually does not cost you (the buyer) anything. Your agent's fee will be paid by the home builder.
When you first visit a builders sales office or model home they will ask you to register with them so that they can stay in contact with you throughout the home shopping process. At this time you will also register your real estate agent with the builder. Registering your agent puts the builder on the hook for paying your agent. If you do not register your agent on the first visit, some builder's may not agree later to pay your agent's commission
Your real estate agent's job is not only to help navigate the complexity of a new home purchase, but also to help you get the most value for your money. When buying new construction you might miss out on some things if you only use the builder's agent. Once you find the new build that is right for you, here are just some of the things your real estate agent should do:
Reviewing contact: Your real estate professional is not an attorney and it is recommended that every client hire a real estate attorney to review the contract documents. Your real estate agent can put you in contact with a real estate attorney that can assist you. Most builders do not use the TREC (Texas Real Estate Commission) contracts. Builders generally will use their own contract which are written with their own protection in mind.
Negotiating upgrades: Builders charge a premium for "add ons" or "extras". These items can include blinds, garage door opener, granite counter tops and more. Your real estate agent understands how to negotiate with the builder's agent to get you these perks and amenities at a discounted price or sometimes for free.
Recommending financing: Most builder's work with a preferred lender who is, perhaps, within the family of the builder's company structure. The builder's lender may offer incentives on mortgage products that work well for you. Your real estate agent will have a preferred vendors list as well with their favorite mortgage brokers. This will provide you with additional options and the resources to shop around for the mortgage product that is best for you.
Home Inspection - Far too often do buyers of new construction decide that a home inspection is not necessary. This mistake can cost the buyer a lot of money when it comes to selling their home in the future because of the severity of construction defects and the repairs they or the new buyer will have to make. Builder's do not generally offer or suggest a home inspection. Your real estate agent will not only suggest it, they should help you coordinate it and be present during the inspection.
Pro's of a builder's agent
Keeping the importance of hiring your own agent in mind, the builder's agent is still a valuable resource when it comes to purchasing a newly constructed home. A builder's agent brings a great deal of knowledge to the table about how the home will be constructed, the process of buying a newly built home as well as general knowledge about the development and the surrounding community. Although you can count on the builder's agent for this information it is important that you do not make this individual your sole representative in the buying and selling process.
Whether you purchase a newly constructed home or not, every buyer wants to walk away from the process with a good experience and peace of mind. When enlisting the help and expertise of a real estate agent buyer's take a giant leap in obtaining that goal.
DFW is home to some of the finest and most affordable builders. To talk more about new builds with a real estate agent please contact us.