WHY YOU WANT A BUYER’S AGENT WHEN BUYING A NEW HOME
Purchasing a home is one of the biggest decisions, and financial investments of a person’s life. This can seem simple at first, but there is quite a bit that goes into purchasing a home. On average there are 50 people involved in the transaction for a pre-owned home. On a new home that number is closer to 200 people. All looking out for the builder. It would be smart to have one of the people involved looking out for you. One may think that a new home build may be more cut-and-dry than than a pre-sale. However, the purchase of a new home is often more intimidating, and complicated.
On-Site Agents Work For The Builder, Not For You
When you walk into a model home, or meet with a builder it is important to realize that the on-site agent actually works for the builder. Their main focus is going to be the sale, and getting the best deal for the builder. Most of the time those agents are obligated to the builder. They look out for the best interest of the builder, not the client. At no time will they negotiate against their client, the builder. They will not have your best interest in mind. They will know the area and details on the home, but you want an agent who is knowledgeable in your corner. You want to find an agent who has a lot of experience with new homes, and builders. Read reviews to find a good match for you. Furthermore, your buyer’s agent can help you with finding the right lender for you. The builder may have you believe that you can only work with their title company, and lender. They get big incentives by putting you through their preferred lender. A buyer’s agent can help you “shop” the best options for you.
The Best Part: The Services Are Free To You
When you enlist the help of a buyer’s agent it is the seller of the home that pays the buyer’s agent’s commission. A lot of people think that they will get a better deal if the seller doesn’t have to pay the buyer’s commission. This is not the case. Builders do not like lowering their prices. It sets a precedence for price comparison for homes in that area, and future home sales. A builder is much more likely to include closing costs, or offer special home design incentives before they will consider selling their home. Often what the builder will do is include the commission of the buyer’s agent into their marketing budget.
Benefits Of Having A Buyer’s Agent
- Accountability – Builder’s tend to be held accountable when there is a buyer’s agent involved. If there are defects or builder mistakes a buyer’s agent can hold them accountable. Whereas, without an agent the mistake or defect may not even be found until it is much too late.
- Negotiating Money Down – Often a buyer’s agent can negotiate a smaller amount down as required by the builder.
- Get Everything In Writing – A good buyer’s agent will get everything in writing before they proceed with a deal.
- Get Out Of The Deal If It Is Not Right, And Be Protected In The Process – Recently we had a situation where our client had to go back home because of family health issues. The builder was refusing to give their deposit back. Because they had good representation on their side we were able to get their full deposit back. The builder would prefer to keep a good relationship for potential future clients the buyer’s agent may bring to them.
- Negotiating Price And Options – Many times buyers are not comfortable or savvy in the skills of negotiating. A buyer’s agent will look out for your best interest and work to get you the best deal possible. A good buyer’s agent will know what the builder will be able, and willing to do.
- Knowledge – They will know the area, the builder’s quality and reputation.
- Insight – By pulling permits you could probably find out if there are plans for busy roads or power-lines being placed near your new home build. These are detrimental to future resale value. An agent can do that leg-work for you. They could also provide insight you may not be able to find yourself. For example: They could tell you if your home is facing issues with water drainage, or flooding. Something you may not see by just looking at the lot. This is also something that could be very impacting on resale of the home.
Remember, everything in Real Estate is negotiable. So, find someone who knows their stuff and will be able to negotiate you the best possible deal.
If you are looking to buy or sell your home in the Colorado Springs area The Canady Team has got you covered. We specialize in new-home builds and relocation. Give us a call at 719-999-5789 or visit us online at www.buysprings.com