Things You Need to Know About Buying New Homes

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Things You Need to Know About Buying New Homes

Many people who are thinking of buying a new home often have misconceptions about the process of buying a new home. First, many people believe that they do not need an agent to purchase a home. Technically, they are correct. You can deal with the builder's representative yourself, but remember, that person's job is to get you to purchase their home for as much as possible and to get you to spend as much as you can afford on upgrades. It doesn't hurt to have an informed person there by your side who has your best interest at heart who can help you negotiate the terms that are best for you.

Another popular misconception is that you will have to pay a commission to your agent and that if you don't have to pay it with cash out of your pocket, the commission will be added by the builder to the purchase price. Although this is the case with a small number of builders, almost all reputable local and national builders recognize that they receive the bulk of their business from agent referrals and build the agent commissions into their marketing budgets. These commissions or referral fees are in no way tied to the purchase price of their homes. You will not be able to negotiate better terms simply because you have decided to represent yourself. If there is no agent involved in the transaction, the money simply goes back into their marketing budget to purchase more advertisements.

I recommend that when dealing with a builder you be represented by an agent. Some of the benefits of working with an agent like me are:

The builders spend a great deal of time and money educating agents such as myself on their construction methods, levels of trim, amenities and buyer incentives; therefore, we can help you find the best deals out there.
Once you find a home you are interested in purchasing, you don't have to negotiate on your own. You can have someone there to represent you who has been through many of these negotiations and is familiar with the terms of the contracts and who is looking out for your best interest.
You can receive advice on what upgrades are worth the money the builders are asking for as some upgrades can be well worth the money and others you can do much more reasonably after the purchase.
An agent can make sure you hire an outside inspector to make sure the builder built your new home according to current building codes and that any defects found are repaired prior to closing.
If something were to go wrong during the transaction, you won't have to go it alone. You will have the influence of a 100 agent RE/MAX office behind you to help you resolve your differences with the builder. Most builders get approximately 70% of their business from agent referrals. Believe me, they don't want to lose our referral business.

When you are talking with a builder, please let them know you are working with an agent and give them my name and/or business card and I will be happy to go through the process with you. I will be delighted to discuss with you the different builders you are looking at to give you my opinions of what they have to offer and take you around to visit them. Remember, my service will not cost you anything and could save you a bundle.

If you have any questions, please do not hesitate to call me.


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