New construction is everywhere. You can hardly drive down a major road without signs pointing you in one direction or another, directing you to a new development. It’s very exciting to think of owning a home built to your liking: selecting your lot, choosing your tile backsplash and hardwoods, picturing you and your family starting a new chapter in a brand new home…it’s a dream come true! As fun and exciting as it can be, there are some things you should definitely know before driving up to that model home.
Myth: You don’t need a Buyer’s Agent.
Truth: The model home is staffed with at least one sales agent, who happens to work for the builder. While it’s true they want you to have a great experience, your very best interests will be handle by an agent who only represents you, the buyer. An agent knowledgeable with the building process, and what features you fell in love with in model home are standard or upgrades, would be best for the job.
Myth: By not having a Buyer’s Agent you’ll get a better deal on a new home.
Truth: Most builders set aside certain funds for each home, allotted for expenditures such as Buyer Agent commissions. If it is not used, it will not come off the sales price of your home, instead the builder will pocket it or it will be used to market additional homes (Inman.com) Lowering prices is not something a builder wants to do, especially on a “to-be-built”. Again, the site agent represents and negotiates on behalf of the builder, which they are legally bound to do buy agency law.
Myth: You must pay asking price for a new home
Truth: You can absolutely negotiate the asking price on a new construction home the same way you would a pre-loved home. Your best deals may be on inventory homes that have been waiting on a buyer for more than 30 days, or better incentives may appear towards the end of a quarter. Knowing how your builder’s fiscal year runs may benefit you.
Myth: You don’t need to have a new home inspected.
Truth: There is no perfect build. If you’re building from the ground up, phase inspections are a great idea and extra insurance that your build is going as well as it can. In my experience, I’ve seen new inventory homes with more items needing attention than that of a pre-loved home. It’s not intentional, but with so many homes being built at once, things are bound to happen. And when they do, you’ll want an experienced agent in new construction to help you handle them.
To conclude, I’d like to point out some key reasons you’ll want agent representation:
- Your best interests should always be represented, at every stage of the build. A Buyer Agent is the only way to insure this
- Most site agents would agree it’s nice to have an agent represent the buyer and handle their side of the paperwork and details needed to ensure a smooth closing.
- A lot of people who are moving from out of state are buying new construction. Wouldn’t it be nice to have someone point you in the direction of movers, doctors, schools, hair dressers, mechanics and other necessities to help you transition?
- Building is emotional: there will be days you’re on cloud 9, posting your new furniture finds on Pinterest and picking out paint swatches. There will also be days of frustration when something is delayed or you have to re-select an appliance or option for your home. Those are the times your Buyer’s Agent will be able to talk you through the next steps and how to see the light at the end of the tunnel, and remind you why you’re doing this in the first place. It’s times like this you know your agent is invaluable and you made the best decision in hiring her/him.
Marissa Stauffer is a Buyer Specialist for the Miller Realty Group, part of Keller Williams Realty in Fort Mill, SC. She is very experienced in new construction and brings decades of expertise in customer service. Marissa would love to assist you in the home buying process, whether new or pre-loved. She can be reached at 518.391.8962 and firstname.lastname@example.org