“Thanks, but we don’t need a Realtor…
we’re going to buy in a New-Home Community.”
I admit, the statement floored me. I had been speaking with this couple for a while, on and off for weeks, and we’d all really hit it off.
As first-time buyers doing what most do, they’d started looking online at sites like Zillow, Trulia, Realtor.com, or Homesnap and were getting excited.
That excitement had been tempered with fear of the unknown, and the cost of buying their first home!
As I do with all my clients I partner with, I put them in touch with a trusted Lender to get them Pre-Qualified for a mortgage, so they knew not only what they could afford but what they were getting into!
Second, I had addressed the concern of How Much Does it Cost to Use a Buyer’s Agent? (the quick summary: It’s basically a free service for you!).
Now, here they were wanting to buy or build in a New Home Community, and they felt I couldn’t help them! I obviously hadn’t done my job well enough and needed to educate them a bit more.
Do You Need a Realtor When Buying New Construction
The short answer? YES!
The longer answer? Yes! (Okay, read on!)
Buying New Construction
The appeal of buying New Construction is obvious. Whether it’s that you found a community that’s exactly where you want to live, or it has exactly the amenities you desire, or maybe it’s a builder you love, the reasons all come down to the excitement of owning a home that’s never been lived in before!
Some people get really excited about building with a new home builder – being there to take pictures on the weekend as their home is built, or maybe the hours spent in the builder’s Design Center choosing exactly the flooring or countertops that will be installed.
Let’s face it, can anything beat that “Never Been Lived In” smell?
Whatever the reasons, if you find yourself looking at Buying New Construction it’s still in your best interest to have a Realtor working for you as a Buyer’s Agent (questions about what that means? Give me a call and I’ll explain)
Most people go to a New Home Builder and think that friendly salesperson, so helpful and generous with their time, is just like any salesperson they’d find at Target or Brooks Brothers.
Almost every time those salespeople are Real Estate Agents, and you have to keep one very, very important fact in mind:
They are there to protect the interests of the builder!
Now, that’s not to say they’re going to be dishonest or unethical, absolutely not! But they are there 100% to sell you a home, and to represent the interests of their employer.
Oh, you don’t know to ask about inspections or repairs or free upgrades? So sorry, youhadyourchance!
Would you save money by not using a Realtor When Buying New Construction?
The cost of using a Buyer’s Agent is built-in to the sales price they’re quoting you when you’re Buying New Construction. If you walk in without representation, you are representing yourself, and that extra percentage they could pay your Realtor is going straight back into the Builder’s pocket! Remember in, North Carolina the Buyer’s Agent is typically paid from the Seller’s proceeds!
Think they’ll give that percentage back to you as a discount? You could ask, and I bet they’ll be professional enough to not laugh, but if you look closely you might notice the smirk at the corner of their mouths….
So if they’ve already built in the cost of paying an agent for you, and you don’t have to pay for a Buyer’s Agent out of your pocket, WHY would you NOT use one?
Can a Buyer’s Agent get me a Better Deal?
Unfortunately, probably not. Builders typically don’t negotiate on price, as that protects their entire development and the home values of people who’ve already bought. Just think, if you moved into your new home and found out the guy next to you paid $10,000 less, how mad would you be?
But that doesn’t mean we can’t ASK! 🙂
What builder will do is sometimes (not always) negotiate on upgrades. You may be able to get a free flooring or countertop upgrade, for example. While your agent can ask for a price reduction, it almost never happens.
What your Agent can do is Partner with you to help get the best deal, making initial contact with the onsite sales agent, and how I like to present it to my clients is I’m the “Quarterback” or the “Buffer” during the process. I am there to help give advice, point out important facts in the contracts, ask the onsite agent questions to get them to explain more facts to you. After the contract is signed, I work for you to help keep you updated, help schedule inspections and other meetings, and to essentially help take a stressful time of Buying New Construction and turn it into an exciting and enjoyable experience!
If you’re looking to Buy a Home and been doing it on your own so far, perhaps it makes sense for us to have a conversation and see if it makes sense for us to Partner together. Just contact me via email or phone and let’s see how I can help you!
Mahool Nance Team