Why would you want to use a real estate agent for a new construction home?
There are plenty of reasons why working with a real estate agent when buying a new construction home can be beneficial.
An experienced agent will have likely already established relationships with builders in the area, which could come in handy when negotiating prices or terms.
This means that they may be able to get you a better deal on your new home, as well as help you navigate any potential issues that could arise during construction. Having firsthand knowledge of the community or the representatives you’d be working with gives you an advantage in these types of situations. Priority notifications, information, and access to new developments are also some of the perks that can come with working with an agent. Having first hand knowledge of things like phase releases, price increases or improvements, can give you a competitive advantage over others.
Agents can provide helpful insights and guidance throughout the entire process.
From choosing the right new home builder and specific floor plan to dealing with any potential issues that may arise during construction. This means that you won’t have to go through the process alone and can rest assured knowing that someone is looking out for your best interests.
An experienced new home builder agent will have had experience with the process from each builder and knows what to expect from them. From the initial tour, design studio selections, required additions such as solar panels in states like California, to financing, addendums, and the final walk-through before close of escrow.
Did you know that you should still have an independent third party inspector at various stages of your home build? Your agent will make sure that you are protected during this entire process.
An agent who specializes in new construction homes will be best equipped to help you navigate the unique challenges that come with this type of purchase.
They will have a thorough understanding of the building process and can offer valuable advice and assistance throughout. Not sure about how the timelines work, or how it is different than buying an existing home, or what kind of inspections you should get? These are all questions that your agent can help answer.
A good agent will have a thorough understanding of the building process and can offer valuable advice and assistance throughout. This means that they can help you avoid any potential pitfalls and make sure that your new home is everything you’ve ever wanted it to be. Some examples of these are as follows:
- Delays in the build schedule
- Appraisal Issues
- Inspection Issues
- Incorrect work or installation
- Unfinished work at the time of move-in
- Problems with the builder’s warranty
- Lender related issues as timelines are much longer than with existing homes
All of these potential issues can be frustrating and cause unnecessary stress during what should be an exciting time. However, with the help of a knowledgeable agent, you can avoid these problems altogether.
We had a client who spent a significant amount of money on upgrades, but was using an FHA loan so only 3.5% down. This meant that they spent a good amount of money on upgrades that didn’t increase the home’s value 1 to 1 proportionately. For example, upgrading from carpet to hardwood flooring may cost $25k, but the value of the home may only increase by $10k. We were able to negotiate with the builder through their corporate office to ensure that the client didn’t have to pay the difference between the negotiated sale price, versus the lower appraised value of the home.
If you were working with the builder and didn’t have an agent to help you negotiate on your behalf, the outcome was most likely would have been in the builder’s favor instead of the buyers.
Working with an agent can help take some of the stress out of buying a new construction home by providing you with someone to lean on for support.
This means that you won’t have to worry about handling everything on your own and can focus on enjoying your new home. They also have the backing of their brokerage, which can provide additional resources and support if needed. Would you know where to turn if something went wrong with your home during construction? Your real estate agent will, and they can be relied upon for their experience and expertise to make sure you know what steps are coming up and can be prepared for it.
Do you have to use the builder’s lender for the home loan?
No, you don’t have to use the builder’s lender. You are free to use any lender you choose. However, using the builder’s lender may come with some benefits, such as priority processing and notification of new developments. They also will typically offer higher closing cost credits than other lenders, which can save you money.
Most builder will require you to pre-qualify with their existing lender, so expect that requirement.
What are the benefits to using a lender other than a builder’s lender?
There are a few benefits to using a lender other than the builder’s, such as:
- More loan options to choose from
- The ability to shop around for the best rates
- More personalized service
Rates may be better, and there are often better down payment assistance programs. For those doing high down payments, the incentives offered by builders may not outweigh the benefits of working with a lender you trust.
If you’re thinking about buying a new construction home, it’s important to have an experienced agent by your side, they can help you navigate the process from start to finish and make sure that everything goes smoothly. Having the right lender is also important, and your agent can help you choose the best one for your needs. With their knowledge and experience, you can rest assured that you’ll be in good hands.
If you have any questions or would like to learn more about new construction homes, we would love to help out.