Q: Do I need to hire a real estate agent to represent me when I buy a new construction?
A: Legally, no.
But if you don’t use an agent when you buy new construction, you might be missing out on some tangible benefits that impact your wallet and how much you get for your money.
There are many reasons why an agent is a sound investment during the purchase process of new construction. While some of them can be quite complex (and go beyond the scope of this blog post), here are a few highlights:
Market Value Compared to Purchase Price:
How much money are you going to be able to come out of pocket for your down payment? If you don’t want a nasty surprise when it comes to disparities between your agreed-upon purchase price and the actual market value of the home, you’ll want an agent with access to information that will help you accurately assess the true value of that brand new home.
Real estate agents are professional negotiators, and often an agent can get more from a builder than you would on your own. While some of this might be related to purchase price, other perks may include property or home upgrades.
It’s probably no surprise that your builder will have preferred financing partners to work with. Many of those “partners” pay good money for the opportunity to handle your loan. But is it the best loan at the best rate? An agent can be both a sounding board for financing terms and a source for trusted alternatives.
While your real estate agent isn’t an attorney, they know a great deal about the ins-and-outs of property contracts. This includes builder’s contracts, which may have provisions that put you in dicey territory should something unforeseen happen. Protect yourself with an agent.
These four reasons are a good place to start, but there are plenty more. The bottom line is: The builder will have their own system in place to maximize their profit and minimize their costs. Shouldn’t you?
If you need any help selling your current home or looking for the next one, I’d be happy to help: Just Call me, Mike Cribbin at 314-954-6500 or drop me an email at firstname.lastname@example.org.