There is no question that a knowledgeable and experienced real estate agent can add value to buyers purchasing new construction. While the friendly on-site agents seem to be the only real estate agent you need to navigate your new construction home buying process, these real estate agents do not represent the buyer’s best interests. They are well-versed in selling the builder’s homes to prospective buyers, and represent the builder’s interests in the sale.

A dedicated buyer’s agent can represent you during the process. This post highlights in detail how a buyer’s agent can add value if you let them, and the areas where they do not add value so you can decide if you would like to hire a buyer’s agent to assist you during your new home construction process. A buyer’s agent most important job is to get the buyer the property they want based on the buyer’s needs and criteria.

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How a buyer’s agent will help you

Connect you with mortgage loan officers to get you the best interest rate and overall financing package. Builders have preferred mortgage lenders they like to work with, or in some cases have an in-house mortgage company to have more efficiency and control in the transaction. These mortgage professionals may also offer closing costs as a reward for giving them the opportunity to work with mortgage lenders already familiar with their processes. Buyers are not required to work with these mortgage lenders. Your buyer’s agent can connect you to other mortgage loan officers to make sure you are not blinded by the builder’s lender and incentives and miss out on a more thorough financing package. Sometimes the builder’s mortgage professionals offer the best financing, and sometimes they do not.
Manage the purchase process from start to finish. Buyer’s agents can schedule that very first appointment at the new home community. If you decide to purchase there, depending on where you are in the building process, they schedule and coordinate important design meetings, walkthroughs, inspections, new home orientations, and closings. Builders often have internal milestones they have to stick to and sometimes many of these dates are not flexible. The buyer’s agent can keep you informed of these dates and attend as your advocate to ask important questions. Keep in mind, if you are buying a new construction home that is already built, there will be much less to schedule and manage than if you start construction of the home from the ground up.
Recommend and schedule third party inspections. Builders are required to build new homes to present-day codes and regulations and City inspectors make sure that happens. However, buyers may want an independent, third-party inspector to verify that work. A buyer’s agent can make this option known to you and can arrange and schedule these inspections. The buyer is required to pay for these inspections.
Ask clarifying questions of the builder. Sometimes the onsite agent is confusing. Especially if you are a first time homebuyer or haven’t purchased a home in a long time. Your buyer’s agent can emphasize important points around the deposit, financing process, construction timelines, builder offered incentives, and design packages, just to name a few. If you are uncomfortable with what you hear, speak with your agent about your uneasiness so that your concerns are addressed.

How a buyer’s agent does not help you

Buyer’s agents do not know every detail about the new home community. The on-site agent is the best person to provide details about the new home community. They are required to know all the ins and outs of the construction and are present learning new features every day. You do not want a real estate agent who shows as many as 40 varying properties a week interrupting or leading the on-site agents when they are the experts on that particular community. A good buyer’s agent will be happy to get you answers to builder and community specific questions they don’t know as they arise throughout the process and to allay concerns.
Buyer’s agents do not tell the onsite agents and the builder what to do. There are two sides to each transaction in which both sides have to give up things they may want. For example, the buyer may want a “good deal,” perhaps defined as a lower negotiated purchase price. However, the high demand for new construction balanced with the low supply and the fact that builders cannot keep up with said demand means that new construction is selling quickly and puts the builder in a privileged position where they do not have to honor a request for a lower price, or any request. In other cases, the builder may be open to negotiating a lower price if they are struggling to close out a community, the time of year is slow, or some other reason. Rely and trust your real estate agent’s expertise to inform your strategy. The builder also is not required to provide a washer and dryer, or a refrigerator, but buyers may really want these things. The buyer’s agent will be happy to ask for these things on your behalf, but they cannot insist the builder does everything you want. Buyer’s agents help you navigate frustrations but do not possess the power to change them.
The buyer’s agent cannot guarantee builder quality. Unfortunately, there are all types of builders out there with varying levels of quality and workmanship. The agent’s single job is to help you get what you want within the criteria and parameters you have specified. The onsite agent is able to answer questions on what the house is composed of, the building process, and other quality concerns to inform the buyer before you sign a purchase agreement to buy. However, if you are generally dubious of new construction, you will want to build a custom home or stick to homes that are already built.

What real estate agents do

Real estate agents have a fiduciary responsibility to their clients. Because of this, they face strong ramifications if they provide advice outside of their expertise and subsequently cause issues for the buyer. They also find, meet, and help new clients based on their ability to provide a five-star experience to those they work with. Thus, they have a real reason to do a great job, be honest, and want to do so. Being familiar with these expectations will ensure a more seamless homebuying experience.

How real estate agents add value to your new home construction purchase

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