Use a Realtor to Assist in Buying New Construction

Purchasing a home through a Builder appears to be a simpler process than purchasing an existing home. However, this is deceptive. There are many reasons why a buyer should use a Realtor to assist in buying new construction. When buying new construction, the buyer is purchasing from a real estate professional working for the Builder. The buyer has an expectation that the new home will be free of defects and the closing will conclude without issues.

As the Realtor will be paid to be involved in the purchase, buyers often fear they will be at a disadvantage. However, commissions are paid by the builder and they are happy to do so. This has no impact on your negotiating position with the builder. This relationship is of benefit to the builder as they are generally dealing with clients with independent representation and support.

Ensure you deal with a Realtor that works in the community where you want to live so they know the community and neighborhood. That Realtor will be aware of the quality of the schools, proximity to shopping, local crime hotspots, and so on. The realtor can also present you with alternative existing homes that may meet your needs without paying the premium associated with new homes.

Market Knowledge

Your Realtor should conduct a Comparative Market Analysis for any home before you consider making an offer including new construction. It is important for you to be aware of future resale value of the property. This knowledge can help in assessing what upgrades should be selected and reasonable pricing for the upgrades.

Ensure your Realtor has experience with the builders in the area. There are many outstanding builders and many that have a reputation for poor quality or service. Your Realtor should be knowledgeable about the builders in the area and preferably should work with several different builders. Your Realtor may also have experience with the quality of Builder’s after sale service through their relationships with other homeowners.

Builders often provide credits or discounts on the basis of financing through their preferred lender. The Realtor has access to financing alternatives through other lenders providing better rates and terms, in spite of discounts. You may or may not wish to use credits but feel compelled in order to get the value of the builder’s lender inducement.

The Realtor can assist in negotiating upgrades as the Realtor will have more experience with the value of those upgrades in the local market. Realtors have access to a network of service providers that can assist in the home buying process, which are necessary even for new construction.

Inspections

The buyer should require a home inspection prior to accepting the home, including a termite inspection. Inspections by municipal inspectors will not find all construction defects. A house inspector from Minnesota has documented photographs he has observed in new home construction over several years, located at http://structuretech1.com/category/new-construction-inspections/.

Construction materials are usually left exposed to the weather at lumber yards and the job-site. Resulting in infestations by termites and other pests. It is far better to address these problems before possession or within the first year than to attempt to get support from the builder in later years. The Realtor will provide house inspectors and termite inspectors to support the homebuyer independently of the Builder and municipal inspectors.

Builders often use a different purchase agreement from the standard Residential Purchase Agreement used by the California Association of Realtors. The Realtor can provide some assistance and can provide access to real estate lawyers to make you aware of issues like warranties and construction delays.

It is important you use a Realtor to assist in buying new construction. You have  many choices when buying new construction. The builder is in a better negotiating position. You may have expectations that because the property is new there is nothing that can go wrong. The Realtor can provide objective analysis of market values of the choices the buyer makes. The Realtor can provide access to independent service providers such as mortgage companies, inspectors and lawyers.