Buying a home--whether resale or new construction--can be a complicated process with layers upon layers of laws, regulations, bank dealings, inspections and more. Realtors require education and training just to be able to understand the process fully and become licensed. They are essentially given all the tools needed to firmly negotiate with a builder. Realtors can be one of your best assets in purchasing a newly built home.
Here are some common misconceptions about the new construction process:
“But I can make the deal myself.”
If you owned a large business, would you do your own taxes? If you were in trouble with the law, would you be your own attorney? You CAN do both of those things,but without a deep understanding of the legal process and all of its intricacies, you risk making major mistakes with unfortunate outcomes. The same is true with any real estate sale. While you can go through the process alone, a realtor is an industry insider and someone who will use their knowledge to protect your best interests. They have access to databases and resources that buyers do not. They will know important information like the reputation of the builder, the average prices for comparable homes in the development, how low the builder may be willing to sell, what extras (closing costs, inspections, etc.) the builder may be willing to accept in the price, and more. You can broker the deal yourself, but in the end, you may be getting a home for way more and with less extras than you could with a realtor.
“But the new development has a sales agent.”
This might be true. They may also be a really nice person, but they work for the builder. They may not even be licensed, limiting their actual knowledge of the real estate industry. They are not bound by any legality to have your best interests in mind. Their commission, however, is most likely what they have do in mind. In some cases, they may have knowledge of how much the builder will go down on the price of a home, but will not share that information because that difference may be a part of their bonus for the sale. Bringing your own realtor into the process is the only way to ensure your best interests are upheld.
“But I don’t want to give a realtor commission.”
There is commission to be made by someone regardless of whether you want to contribute to it or not. The only difference is whether you give the entire commission to the seller’s agent or would you like your own agent who is trying to secure the best deal possible for you to share in that commission? Your realtor will earn that commission by simplifying and clarifying the entire experience for you. Plus, they will be your buffer if negotiations get tense, saving you any anxiety or discomfort.
When it comes to new construction, sure, you can go it alone. But, the only way to make sure you are getting the best deal is through the knowledge and guidance of a trusted realtor working for you.