This real estate market has been difficult for some buyers lately. Inventory levels are very low and there are not a lot of homes currently for sale. Many buyers have been unable to find the perfect home and have been inquiring about building one instead. This shows to be a great alternative especially since building a new home can be extremely exciting. You get an opportunity to build your dream home from beginning to end. It starts with choosing your lot, the type of style you want, interior finishes and most importantly all of the fancy upgrades that can be available. Be certain though, just like any conventional home purchase, buying a new construction home is not an easy thing to do. It is a very emotional and expensive transaction that can have many stressful and financial implications.
In many cases, there are a lot of reasons why you should hire a Realtor® when buying new construction rather than going directly through the builder. It’s very important to know that when buying new construction that you seek the help of a Realtor® before meeting with the builder.
New construction sales people represent the builder. Most builders and new construction companies have their own model homes and real estate agents on site and available to answer questions, help people who walk in and check out the homes, and in the end are there to help with a purchase and construction of a new home. New construction sales people do provide a valuable service for the buyers. They can explain differences between different styles of homes and floor plans and some even have their own information about financing options, special upgrade availability and any specials that may be going on. While this may seem great and a one-stop-shop PLEASE NOTE that it’s important to remember that the new construction sales person represent the builder, as they have a fiduciary duty and are contractually obligated to do. Having an experienced Realtor® is important when buying an existing home, however, having a Realtor® who has experience with new construction homes is critical.
“Realtors® are trusted resources for real estate information and can help home buyers navigate the increasingly complex home-buying process” said National Association of Realtors® President Gary Thomas. “The buyer agency agreement ensures the buyer that his or her Realtor® will represent the interests of the buyer alone and not the seller.”
Contractual and Fiduciary duty. An important consideration for any buyer is what their agents contractual and fiduciary duty is. When you decided to hire the services of a Realtor®, their responsibility is to you. That means you have a professional who is looking out specifically for your best financial interests, and a professional who’s contractually obligated to protect you. A Realtor® can help you through the new-construction process and documents. They can help you understand how specific clauses, addendums, contract riders and upgrade options affect you and make sure you know what you need to know before you sign on the dotted line.
A Realtor® who represents you is going to be able to help with negotiating a better deal. Looking through the different models and plans and choosing your upgrades and finishes is the fun part. Most builders will advertise the base price of their new construction homes and in most cases, this price is for the “cookie cutter” basic model home. Once you’ve got everything that you want and you are ready to sign the contract, a Realtor® who represents you can negotiate all the terms and conditions on your behalf. They negotiate everything from base prices, upgrade options, timelines and closing costs. More importantly, a Realtor® can offer other options for financing and legal representation as opposed to using the builders lenders and attorneys. Again note that although it may be easier to use the builders lender and attorneys, they may not be your best option and you need to ensure you are getting the best representation possible and have someone on your side looking out for you.
Keep The Build On Schedule. Buying a new construction home is a very complex process. There are many things going on at once and it can be easy for the transaction and/or the actual build to get off track and get delayed or worse, completely stopped! This is another reason to hire a Realtor® when buying a new construction home. The agent will have the ability to watch and keep the build on track. There are a lot of things that can create delays with any home purchase and a new construction home is no exception – actually its almost a given. Certain factors such as the size of a home, the style of the home, the weather, subcontractors and the builder, can cause new construction homes to take a few months to a year to build.
Full transaction management. Signing a contract to purchase for a new construction home is just the beginning. You need to also get your financing in order, work with your attorney, insurance agent and attend numerous meetings and inspections throughout the construction process. A Realtor® can help manage that process and can accompany you on those meetings and inspections to ensure you’re not missing anything during each step of the way. They will also advise you what inspections are important and will be there to ensure you are making the most cost and beneficial decisions.
If you decide that you’d like to buy a new construction home, there are lots of benefits to hiring an experienced Realtor®. It is strongly encouraged that you do not attempt it without your own representation. Having a professional working on your behalf can go a long way and ultimately save you time, money, and any additional stress.
Check out some of these great new construction homes in Worcester County