Buyer Agency in New Home Sales
Can A Buyer Negotiate With A Builder?
Yes. Another reason to use an experienced buyer’s agent to negotiate for you. Even if the builder has package deals on upgrades, or they have buyer incentives, your buyer’s agent can work on your behalf when it comes to timelines, lot choice or downpayment assistance.
Today’s consumers have choices in lenders. Sometimes there are advantages to using the builder’s designated lender, and sometimes a local bank or lender will have better terms and or rates. Your buyer’s agent will help you get the best resource for your particular needs.
Benefits of Using A Buyer’s Agent in New Construction
As a buyer, there are advantages to having your own buyer’s agent to represent your interests. Most builders, but not all, have built-in costs that cover the Realtor’s commission, and are happy to work with real estate agents.
- In most cases, the cost of a buyer’s agent to the home buyer is zero, so why not have representation? The experience an agent brings can save a new home buyer a lot of mistakes.
- Real estate agents who have experience with new construction know the questions to ask along all the phases of the build.
- As sustainability has become a prominent issue, adding green features into a new construction home is a great idea. Your buyer’s agent can help you determine the best choices for you in your present market. Green home features will definitely add value to your home.
- The buyer’s agent can help you interpret and understand the contract. Every builder’s contract is nuanced. Understanding “the fine print” can save a home buyer future grief.
- Another benefit of using a buyer’s agent in the purchase of a new house: your agent can do a non-biased Comparative Market Analysis. You can be assured that the value of the new house is realistic, compared to the rest of the homes in your market.
- Tip: Someone purchasing new construction needs to be dedicated to staying in the neighborhood for 2-4 years after the builder closes out, especially if the new buyer only puts 10% or less down. The builder basically controls the value of the home until the neighborhood is closed out.
- Many things are negotiable, whether the builder offers or not. Using an experienced buyer’s agent can be a benefit in any negotiations. Agents negotiate every day as a part of their job. How often do home buyers engage in negotiations?
- Market conditions greatly dictate a builder’s incentive to make deals. A buyer’s agent can help you know when market conditions are right for these benefits.
NOTE: If you would like buyer representation when considering new home construction, you must either register WITH your Realtor® or have your agent call ahead and register with you at the new home center. Most new home builders are happy to work with real estate agents, considering them a valuable partner in the process.
One last thought…if you are considering a new home purchase, have you ever thought of using a decorator, or stager to help you choose finishes? That would be a great benefit to help in all the little design decisions that need to be made during the home building process. Choosing finishes that won’t be dated in a few short years will be a wise decision.
A stager is often part of a real estate agent’s trusted team of professionals, along with lenders and title companies.
Your buyer’s agent will have suggestions as well, given their expertise in the local market.
Further Reading: New Home Construction in Frederick Md
The Benefits of Buying New Construction, via Chris Highland
Why Have a Buyer’s Agent When Buying New Construction – by Bill Gassett, Metrowest Massachusetts Realtor®
Four Reasons New Home Buyers are Investing in Sustainable Homes – by Danny Margagliano, Destin Florida Realtor®
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