Is the lack of inventory our market has pushing you towards the idea of a new build? It may seem like an easy enough process for a buyer since you get to call the shots on everything pertaining to the structure and design of the home. It’s unfortunately not as simple as choosing how many bedrooms or your exterior paint color and there can be a lot of risk when it comes to new construction if you are going in blindly. It is pertinent to have the right representative by your side to help with the things that need to be looked at from a professional’s standpoint.
Below, we’ll dive into just a few reasons why you need a professional buyer’s agent representing you in the sale. They are on your side and it’s their role to ensure you aren’t taken advantage of by the builders and their representatives in the transaction.
1. HIRING THE RIGHT BUILDER
The most important part of finding an agent is calling on their industry experience when finding a builder with a great reputation. You get to benefit from your agent’s network of vendors, lenders and home builders. They have the expertise to connect you with a builder that matches your needs, and more than likely, have already had experience with the builder with a past client. However, if they haven’t worked with a builder you want to use directly, they can gather person-to-person recommendations from other agents in their network to know the expected experience with said builder. They will help you find one that not only delivers exactly what their clients want, but in a timely fashion.
2. THE RIGHT LOT IN THE RIGHT NEIGHBORHOOD
The lot you choose to go with in a new build can either be a positive to your new home or detrimental. In the excitement of the process, we tend to overlook important features of a property. It’s important to have a professional to ensure you make a purchase that will best serve you. They’ll be able to find a neighborhood that best fits your lifestyle and a lot that has a location that works for you. Whether you’re single with pets, or a family with children, the lot location can really make a huge impact. Especially when it comes time to selling it in the future. These are important things your agent will be able to help walk you through, so your decisions work in your favor in the long term, as well as now.
3. UPGRADES AND PLAN MODIFICATIONS
Not only will your agent be able to ensure you get the upgrades and modifications that will best suit your lifestyle, but will also help you make decisions that will increase the value of your home in the long term. They are working for your best interest long term, and with an agent’s guidance, you can be sure to make changes that end up benefiting you. As a buyer, the design center can be overwhelming with options and it is tempting to pick every single option. This can quickly add up over the course of a few hours and your house can easily jump in value nearly $50K if you aren’t careful. A good agent will keep you on track with your desired design theme and also keep your budget in line.
4. HANDLING CONTRACTS AND PAPERWORK
Your agent will handle the contract and all of the paperwork. Many builder’s contracts are written explicitly for the benefit of the builder so hiring an agent to examine the contract and outline your rights as a buyer is key. They will be able to help you break down the best loan types, purchasing processes and steps to take that benefit YOU, not the builder. They’ll make sure there are no overlooked terms in a builder’s contract that could end up hurting you either during the building process or after you move in. You want to make sure you have a professional who is experienced with the paperwork and contracts and knows how to make revisions that work in a way that make you happy.
It is imperative in the purchasing process to have an agent that is able to represent you and negotiate for you. The building process is so much more than having the builder put in your favorite counters and floors. Your agent will be able to get you a price that actually benefits you – not the builder. They will be able to run a comparative market analysis to verify that you are paying a fair price for the property, especially after the upgrades are added. You don’t want to end up overpaying for the home – it could put you in a tough spot when it comes time to sell. They’ll also be able to negotiate terms around building time frame, closings costs, and so many other aspects of a contract that you may otherwise overlook.
6. BUILDER’S AGENT REPRESENTS THEM, NOT YOU
It may seem easy just to pop into an office of a new build, or a builder’s office, and use the onsite agent. But keep in mind that this agent works for the builder, NOT for you. So they will be working to make sure the builder gets the best deal at the end of the day. By having a buyer’s agent of your own, you can ensure there is a professional on your side that can walk you through the process and avoid being taken advantage of during the transaction. They will also have a better handle on things when you hit bumps along the way. If you end up working with a builder who isn’t holding their end of the deal, they will have the power to make connections that ensure the builder holds their end of the contract terms. The builder will generally pay the buyer’s agent’s commission and at many larger, reputable builders, this will come at no additional cost or consequence to you. In fact, in recent new construction transactions, we have had the builder’s agent say that these days, builders feel far more comfortable knowing the buyer is not unrepresented and has adequate representation.
If you have questions or would like to investigate new construction further, don’t hesitate to reach out to us. There are new build communities popping up all over the Front Range and we’d love to share our experience as buyer’s agents with you.