Do you need a real estate agent when buying a newly built home? Can you just use the builder’s representative?
It’s important to understand that as a buyer, when you walk in a new construction site, that on-site agent that’s working in that model home does NOT represent the buyer. They’re representing the builder, and it’s their job to get the builder top dollar and under the best conditions.
The pros of using a real estate agent for new construction FAR outweigh the cons…and it’s not even close.
What Can Happen When You Visit New Construction Without a Realtor?
In many cases, if you visit a builder’s office by yourself, once you sign into a builder’s sales office without your own real estate agent, they may not allow you to have one.
As a buyer, you may be out of luck having a buyer’s agent represent your best interests.
Unfortunately, sometimes nothing is posted anywhere at the builder’s sales center that tells you this. It may be posted in multiple listing services (MLS), but only real estate agents will see it…and that doesn’t do you much good.
So, don’t sign your name or provide other contact information when you visit a new construction development if you are going there without your real estate agent. Instead, speak with your agent regarding new construction. Have them accompany you on your visit to the builder’s site.
Having your real estate agent with you will be one of the smartest things you can do as a buyer.
Negotiations
Negotiation is critical area where real estate agents prove their value.
Purchasing a new home often involves negotiating with builders and developers, who typically have their own interests at heart.
Real estate agents are skilled negotiators, adept at securing favorable terms for their clients. They can negotiate on various aspects, such as upgrades, closing costs, and warranties, ensuring that buyers get the best possible deal.
Their ability to navigate these discussions can result in significant savings and added benefits for buyers.
Legal Issues
Moreover, the legal complexities involved in purchasing a new home absolutely necessitate the involvement of a real estate agent.
The process includes numerous legal documents and contracts that require careful review and understanding. Real estate agents are familiar with these legalities and can ensure that all paperwork is completed accurately and in compliance with regulations.
They will help identify any potential issues or red flags in contracts, protecting buyers from future legal disputes and financial liabilities.
True Value
Real estate agents offer invaluable expert guidance throughout the home-buying process.
For many buyers, purchasing a new home can be overwhelming, filled with unfamiliar terminologies and procedures. A seasoned real estate agent brings extensive experience and knowledge, ensuring that buyers understand every step.
From selecting the right neighborhood to navigating the intricacies of builder contracts, agents provide clarity and direction, preventing potential pitfalls that could arise from a lack of understanding.
In Conclusion
Utilizing a real estate agent when purchasing a newly built home is essential for multiple reasons.
Their guidance, negotiation skills, and legal assistance are just a few of the many values that they bring to the table. By leveraging the expertise of their real estate agent, buyers can make better decisions, secure superior deals, and navigate the complex process with greater confidence and ease.
The blog postings on this site represent the positions, strategies or opinions of the author and do not necessarily represent the positions, strategies or opinions of Guild Mortgage Company or its affiliates. Each loan is subject to underwriter final approval. All information, loan programs, interest rates, terms and conditions are subject to change without notice. Always consult an accountant or tax advisor for full eligibility requirements on tax deductions.
