YOU CAN and SHOULD HIRE A REAL ESTATE AGENT WHEN BUYING A NEW HOME
Don't regret not having an agent! The agent will protect YOUR interests when dealing with a builder. New home buyers need someone to represent their interest just as folks who purchase existing homes do. The builders hire their own reps - they sit in the model homes to tout all the wonderful new features you will have if you buy with them. Many builders hope you walk into their model homes without an agent and that you will be wooed by all the glitter and new smells.
Some Builders welcome agents who bring would-be buyer to their model homes. Many would just as soon see the agents disappear. They appreciate the agents bringing in the buyer but would prefer the agent stops interfering from that point forward.
Why? Several reasons:
NEGOTIATIONS: EVERYTHING is negotiable - even with new builds! Buyers are so often focused on all the add-ons they don't realize they can bargain with the builders. An experienced agent who is familiar with the new Home Market or even familiar with the particular Builder may be able to sway the Builder to throw in luxury items, move walls, or negotiate costs of upgrades.
PRICE: Builders include commissions they'll have to pay agents they bring buyers. The percentages vary but there is still something in it for agents to get paid. If the buyer has no agent, they take that money directly to their bottom lines. But since the money is already built into the buyer’s price it costs you nothing to hire an agent.
HOME INSPECTIONS: The house is brand new, what could go wrong? A LOT ! Good agents will also advise their clients to obtain an independent home inspection just New is not the same as perfect ! A professional agent will recommend that buyers make the offer on their new home a contingency on their purchase.
WARRANTIES: There are 1 year warranties, 10 year warranties; warranties for labor or for parts and structural warranties. What’s the difference? Ask your AGENT !
CONTRACT: The builder will have their own pre-printed, one-sided contract that they will require buyers to sign. Their attorneys wrote it to protect THEIR interests. YOUR agent will know how to review it with you, let you know what things you should be aware of, recommend contingencies that you want to include, make sure the list of choices/add-ons, upgrades are included, and that if you do not understand all the terms, to hire an attorney to represent YOUR interest.
One of the important things your agent will do with you, is walk through the home with you prior to settlement to make sure all the parts of the contract have been fulfilled by the Builder: that the house you are buying is the house they agreed to build !
If you have any questions, please feel free to call me at 443-604-7721 !
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