SMART to use a good Realtor when you are considering a New Home
It's SMART to use a good Realtor when you are considering a New Home Purchase
If you or someone you know is considering buying a NEW Home or Condo direct from a Builder they need to consider a few things.
1. Extra taxes and work involved - including landscaping and fences etc.
(A lot of extra work & expense that some people didn't count on or realize).
2. When it comes time to sell this home that you bought new; the "Real Property Report" or "Builder's Survey" that your Builder provides you with is rarely sufficient for the re-sale down the road. Ask your Builder about this before you buy if they will pay for one.
Then you need to be prepared for more money to be spent on an update when you finish landscaping and fencing your yard.
3. Perhaps the most important part: When you are in a business transaction or law suit you want independent representation on your side.
Its the same for Real Estate: The reasons for this are many but a sampling would be as follows:
a. Is the Builder or his "Sales Rep" actually acting in your best interest? I would suggest that who ever pays them gets the most loyalty for this and that will NOT be the Buyer if something goes wrong.
b. Similar to having a Lawyer - would you hire the same Lawyer that the other side uses? The answer should be "NO!"
c. You need independent representation! To look after "your best interests" and to make sure the paper and items/conditions flow properly and that the conveyancing gets done on time!
d. This is your REALTOR's job! Builders often work differently than regular real estate transactions and often on their time table - not yours.
e. Add to this you should also consider having a Home Inspection done - even on a new home! I have had several cases where we found things that were wrong, incorrectly hooked up and more. This will relieve stress on your side.
NOW;
If you work with a Builder they will tell you that you are wasting your money by doing this.
They will tell you an Inspection is useless as the home has warranty.
They will tell you that the hiring of a Realtor will cost you extra money (not true) for the home. (They say this because they do not want Realtors involved and worse because the commission paid to the Realtor that you hire comes out of their own commission - usually 50%).
You do not pay for your Realtor's Fees when you are the Buyer.
If you do not use a Realtor the Builder's Sales Rep gets 100% of the budgeted commission from the Builder and they still will not be as loyal to you as an independent Realtor when/if something goes wrong. In Real Estate - there are almost always "mine fields" to side step. That too is your Realtors job!
If you trust them 110%; If you know nothing will go wrong and "stress" is something you can handle when it does, then don't bother hiring an independent Representative (Realtor) to help you. After all you can handle it on your own. But ask yourself "will the Sales Rep act 110% in your best interest?"
Negotiations:
Most new homes sales in today's world sell at the list price (they won’t move) or just under.
The builders are setting a list price that will get you to come out and look at their homes. A good Realtor may not get the price down but they often will get you some extras, smooth the process out and look after the stressful things that you will face. A good Realtor is not afraid to push for their Clients. Are you able to "push hard?" There's an old saying from Hollywood and Pro Sports - "The Talent (you) Never Speaks to the Money (Them)." There is a reason for this!
By the way; I have many years experience in all kinds of Negotiations.
I can quote many more stories on why you should hire someone to help you with Builders, why you should have an inspection and so on.
If you look at it from the Builder's side:
They don't want anyone to mess with their way of doing their business or their sales process. They don't want any one who will attack their work, their contractors work or lack thereof.
When a good Realtor gets involved it just makes them work harder to make you happy! (The way it should be).
The Sales Rep hates to lose half his commissions - (you are still paying for all of it via your purchase)
Even though his Boss the Builder is willing to pay a Realtor for a sale!
Why? Builders know we as Realtors have the contacts (Buyers), they know we have a strict code of ethics to work with too.
So don't expect the Sales Rep to be a "Happy Camper" - although most of them hide it really well. If the home sells the Builder will be happy as he hasn't spent anything extra on commissions - he just splits it between two Sales People (His Sales Rep and your Realtor).
Another Tip: If out shopping at New Home sites; Make sure you tell your Realtor first.
The Builder's Sales Reps will try to refuse paying your Realtor if he/she is not physically with you on your first visit.
Another way they try to keep you as theirs without independent representation.
Happy Home Searching!!!!
