When looking for a home to buy, you must first decide if you want to buy an existing home or buy a new one. If you decide on buying a new construction, you can then decide if you want to use a realtor to help you on this venture.
Here in Florida, there is no rule that requires someone to involve a real estate agent when buying a home whether it’s new or resale.
However, If you look at the pros and cons of using a realtor when buying, the pros will ALWAYS outweigh the cons. Developers can be tough negotiators and try bullying tactics on you so it’s nice to have someone in your corner to make sure you’re getting the best deal.
Here’s a list of some of the top reasons why using a real estate agent can save you time, money and a whole lot of aggravation when buying a new construction property.
There’s a common misconception that when you work directly with the developers rep, you can save a lot of money. This is absolutely false. Think about it for a minute… Do you think that the builders representative is looking out for your best interest or their employer’s best interest? it’s common sense… the rep is going to try and work the best deal they can to benefit the builder…not the buyer!
Not having representation in any real estate transaction whether it’s new construction or not is just a bad idea all around.
An experienced realtor knows how to ask the right questions. Having a buyer’s agent to buy an existing home is extremely important but having an agent with experience in new construction is absolutely critical…
Here are a few questions you can ask a real estate agent to make sure they are experienced with new construction homes.
How many new construction homes have you sold recently?
Do have a list of lenders that specialize in new construction loans?
Why should I hire YOU to buy a new construction home?
Having an experienced buyers agent on your team can help you avoid getting ripped off when buying new construction. Buying any new construction home can get expensive real fast. Builders will typically advertise their “Plain Jane” model with no upgrades so that they can mention their cheapest price on a home.
The nice thing about buying a brand new home is the capability to make it your own. However, the more you customize and upgrade it, the more expensive it becomes. Another good reason to hire a Realtor when buying a new construction home is their ability to negotiate for you. Most of the time builders have a list of prices for changes to the floor plans, upgrades, lot sizes, etc.
Contingencies and Inspections
There are many reasons why it’s important to have an existing home inspected, but it’s also to have a new home inspected…, Yes, even if it’s brand spankin new!
If your Realtor has experience with new construction, they will know exactly what inspections to recommend to you. Builders are humans and humans make mistakes so and you have to make sure that your brand new home was built properly. The only to do that with a new home is to have a thorough inspection[s] performed by a credible home inspector.
Could you imagine moving into your brand new home and immediately start having problems? It can turn what should be a pleasurable experience into a complete nightmare!… This is just 1 example of a contingency on a real estate contract that a realtor would suggest to you.
Professional Recommendations on Upgrades
Buyers are generally given an allowance for items like cabinetry, floor coverings, counter tops, fixtures, etc. Experienced Realtors will be able to guide you on what upgrades will actually increase the value as well as what today’s buyers typically look for in a home and why. The last thing you want to do as a new home buyer is spend a lot of money on upgrades that won’t give you a return on your investment, especially when it comes time to sell the home.
Most buyers expect to live in their house forever, but the fact is that eventually you will either move…or die. Assist In Finding A Lender & Financing Options
Your Buyers agent should be able to provide you with a short list of quality lenders that specialize in new construction loans. This type of financing is much different than obtaining a mortgage for an existing home. To start, not all lenders finance new construction. It is recommended that when buying a new home, you should try and use a local institution if possible.
Probably the biggest difference between traditional financing for an existing home and for a new construction build is the payment schedule. The lender makes periodic payments to the developer as the project progresses, also known as “draws”. Upon completion of the new home, the buyer will then get a new mortgage to payoff the construction loan.
As you can see, there are a lot of good reasons for hiring a realtor when buying new construction. Having strong representation when entering into a new home purchase is crucial to ensure that you get the best deal.