Should You Have a Buyer’s Agent for a New Build?
It’s a beautiful day, the sun is out, and the birds are singing. You decide it’s the perfect day to go look at the model home of the new neighborhood you want to move into. When you’re looking to build in a new neighborhood, it’s important to either take your agent with you or to be sure to let them know you already have a buyer’s agent representing you!
Things you should know about having a buyer’s agent
The common misconception
A common misconception about buying a home that is being constructed as part of a development is that you don’t need to have a buyer’s agent. The truth is, anyone working with a builder constructing a new neighborhood needs to have an agent to help protect their rights and have their best interest at heart. An agent will make sure that all the potential contingencies are built into the contract, negotiate on your behalf and be sure that you get a fair deal. Speaking of incentives or deals, an agent is going to know what is fair and what is typical for builders to offer. You can rest assured that you are getting the best possible deal for you.
Lending and closing options
A buyer’s agent will walk through the process of choosing your lender. Although you can choose any lender you’d like, the builder ‘s lender may offer you incentives or closing cost help. You’ll want your agent to guide you through that process and make sure you have all the necessary info to make the smartest financial decision. Bankrate.com explains that the builders may not require you to use their lender as a stipulation of the sale. Doing so, may not be the most cost-effective for you. Having an agent to work on your behalf will ensure that your bottom line is the best it can be.
Additionally, closing costs work differently with builders than they do when buying resale. The cost to you tends to be higher with new construction because the builder does not pay his portion of the required state and local transfer taxes. As the buyer, you are paying both sides. It’s important to have an agent to explain the differences and to help negotiate the best deal on your behalf.
Your agent will help you understand what is or will be, included in the homeowners association (HOA) fees. HOA fees can continuously increase when buying in a new development because all the amenities may not be available when you buy. For example, the swimming pool may not be in or the tot lots aren’t ready. As new amenities become available, the HOA fees will continue to rise.
Questions and changes
Another reason a buyer’s agent is advantageous is to ask the right questions. For example, can you have a pre-drywall inspection with an inspector of your choice? An agent will know what custom build options are available that aren’t necessarily public knowledge. Like, having wiring run under your driveway for an outside light. Or, getting a garage door panel that allows you to turn your garage door off when you are on vacation.
Your agent will explain how change orders work. Every time a change is made in the plan, you get billed for that. It’s important to make as many decisions up front to help defray change order costs. A buyer’s agent can also help explain what happens if there are delays in construction, such as weather concerns or if they hit rock while digging the foundation.
Last, but not least, the buyer never pays to have an agent. The builder pays all the commission. This is a huge added bonus! Why wouldn’t you have an agent to represent you during this process? Give yourself peace of mind knowing that you are being taken care of and your best interests will be met. Contact our office for more information on hiring a buyer’s agent when building your dream home!
Tags: Buyer's Agent, hodosgroup, lending, new build Posted in Buyers