Just imagine yourself in a brand new home… there are so many upsides to buying new construction! To start, everything is NEW, so no worries about any major repairs in the near future. Also, in most cases, you get to pick out all of your fixtures and finishes; so you can really make your house “your home,” one that is unique to you. Another consideration is that most builders have their own in-house lenders, and typically, you will get a price discount or an amount of money that you can use towards upgrades or options if you utilize their lenders. Your home purchase becomes a “one-stop shopping experience” by purchasing your house, AND obtaining financing from the builder’s preferred lender. Lastly, it doesn’t take a huge amount of earnest money to get under contract with a home builder. And then you will have the entire amount of time it takes to build your home to save, save, save for your down payment and closing costs. Oh, and speaking of closing costs, many builders will pay for some (if not most) of your closing costs if you use their lenders.
Sounds easy, right? Not always… there are still a number of things that you, as a home buyer, will need to think about when purchasing new construction… things that you couldn’t possibly imagine or know about the home buying process unless you are a real estate professional! A REALTOR® will guide you through this process, and will try to ensure that your entire transaction runs smoothly. Here are some main reasons why you will need a REALTOR®:
- Many REALTORS® specialize in new construction. I am one of them! We make it our mission to visit the various builders and new construction communities in the areas that we do business in. We know the price points, the neighborhood amenities, the school districts, the quality of workmanship, the warranties, the incentives AND the builder’s salespeople.
- REALTORS® are bound by law to represent the home buyer (through the use of a Buyer's Representation Agreement) and put your interests above all others, unlike the builder’s salespeople who only represent the builders!
- As mentioned above, REALTORS® know the entire home buying process from buying, building, mortgage and warranty, so we can tell you what to expect.
- A REALTOR® can act as a type of “moderator” between the buyer and the builder if a problem (due to a lack of understanding by the buyer) arises.
- REALTORS® make a living by reading, writing and submitting contracts! We know what red flags to look for in a sale and are available for home buyers to turn to for advice and direction.
- My final reason: REALTORS® are professional negotiators! A home buyer needs to submit an offer to the builder just like when buying a pre-existing home. Many buyers don’t realize that they can offer less than what the “list” price of the home is… we do! AND we can ask that all available incentives still be included… in many cases we can even get “extras” such as blinds, upgrades or certain appliances thrown in the deal. We know that all you have to do is ask for it in the offer. We can typically back up our offers by knowing what other new construction has sold for, and what their recent promotional offers were. If a builder was offering “free blinds included” in February, but not in March; a REALTOR® knows that the builder will more than likely honor that promotion (beyond the end date) in order to get a contract signed. I’ve saved my Clients thousands of dollars just by being aware and ASKING for it in the offer!
Also keep in mind that a reputable builder will absorb a REALTORS® commission as part of their yearly expense base. Many will even pay extra bonuses above the standard commission structures because they know how important a real estate professional is in any and ALL real estate transactions… including new construction! So, don’t let anyone tell you that you will save money off your bottom line in lieu of having a REALTOR® represent you… that simply isn’t true. It’s actually quite the opposite! The fact is that you will be more apt to pay less money and get better incentives and options, while having peace of mind throughout the process!
Don't hesitate to contact me if you have any questions about new construction!
Linda Larson-Porter
Certified DFW New Home Specialist
(214) 449-1022
