Do I need to use a Realtor® to purchase a new construction home?
Do I need to use a Realtor® to purchase a new construction home? The answer in every situation will always be, “YES!
Whether or not you use me or not I strongly recommend you use a Realtor® to purchase a new construction home.” These are a few reasons why:
1) That smiling sales agent on site at a model home represents the builder and the builder only. They are there to get the builder the most money for their home. They get paid from the builder and represent what is in the best interest of the builder. I represent, your best interest and will always put interest above everybody else’s. I rather you not buy a house at all, rather than you buy the wrong house.
No matter how comfortable you are with your negotiating skills, I strongly recommend having a real estate professional represent you so they can help you through all phases of the process (i.e. contract, construction, walk-through, and closing). Sales price is not the only number to be negotiated in a home purchase. There are thousands of dollars worth of “fees” associated with a home purchase contract. Do you know what they are and who is paying them? I do. I will help you negotiate fees, upgrade options, financing terms, closing costs, and much more.
2) As your New Home Specialist I will help you understand your contract and contractual obligations to ensure you do not miss out on important opportunities throughout the process such as when you may schedule construction inspections, to what point you can make changes in the construction process, etc. I will help you understand how contract clauses, riders and upgrade options affect you and make sure you understand your obligations and needs before you sign on the dotted line.
3) A good Realtor® knows the builders in his or her market. I do!, I have assisted home buyers in all areas of the Dallas Fort Worth Metro areas. Areas as diverse as Midlothian, Denton, Little Elm, Frisco, McKinney, Burleson, Forney and many more. I will be able to educate you on builder reputations and reviews and help you ask the right questions to ensure you are selecting a quality builder in your market.
4) As you New Home Specialist I will fight for you and as a Realtor® will most likely have far more pull with a builder than you. Issues OFTEN arise in construction of a new home and you may not get the answer you want if you are asking a builder to fix something you do not agree with. However, builders need to maintain their reputations with Realtors® because we sell their homes… over and over again… and can quickly affect their sales numbers if our clients are not satisfied. We know building standards and how to represent you. Would you go into a court room without a lawyer to fight for you? Why go into the largest purchase of your life without someone to fight for you there too?
5) Just as with pre-owned homes, as your Realtor®, I will ensure you are comparing apples to apples when comparing new construction homes. There are a LOT of factors that go into building a home and each home builder has its own standard features, processes and ways of doing business. For instance : what appliances come standard (compare energy efficiency, stainless steel vs. black, etc.), what quality/level of flooring, what quality/level of counter tops, is an irrigation or sprinkler system included and will it cover front and back yard or just one or the other, is the home plumbed for a water softener, what is the standard size of the 2 car garage, will a fence cost extra, is the cover over the back patio standard or an upgrade for which they will pay? Traditional or Tank less water heater? The list goes on and on.
6) Don’t fall for the sales pitch! It is easy to get swept up in the excitement of touring a beautiful model home. However, it is important to have a Realtor® bring you back to reality and ensure this home really does fit your needs. A builder’s sales representative is there to sell you on all the good points of the neighborhood and their product, but your REALTOR will look out for your best interest when it comes to researching important points such as flood plains, property tax variances, potential for commercial construction in your “back yard,” changing school zones, and much more!
7) I will save you a LOT OF TIME! Signing the contract is just the start of the process of buying a new home. You need to compare financing options and terms, work with the title company to ensure a smooth, cost efficient, and timely closing, attend numerous inspections, and so much more throughout the construction process. As your New Home Specialist I will manage that process for you and save you hours upon hours of time and headache.
Finally, almost all large builders have a budget for referral fees and commissions for cooperating brokers . If you are buying a new home that is in a development then the homebuilder has already built in the Real Estate Agent’s commission into the home.
In the state of Texas the rules are such that it is essentially illegal for a home builder to discount a homes price to a consumer for not using a Realtor® if they pay Brokers a Co-op referral fee.
In addition to giving you outstanding client representation, if you use me as your Realtor® I will rebate 30% of my commission back to you at closing!!
$300,000 Purchase Price
3% agent commission = $9,000
Total Rebate to YOU = $2700!!
I hope you find this information useful, please feel free to call me with any questions
Paul Ruth Realtor®
Serving The Entire DFW Metro-plex
RE/MAX Dallas Suburbs