In today’s market, making an offer on a house can feel a little like this:
It’s no secret – the pickin’s are slim out there. Inventory is down making it a ‘seller’s market.’ The banks are still holding money pretty tight making it harder to get pre-approved for the right amount. The idea of renting for another year and throwing away another $12,000+ is sickening. So there’s practically no houses for sale and the ones that are, cost more than the number on your pre-approval letter.
About all that’s available in your price range is this:
This brings us to New Construction. You think, I may have to wait 6 or more months but at least I won’t have to compete with other buyers. Maybe a shiney new, never been lived in, house could be mine? I can make a perfect design combination of counter tops, cabinets, and floors. And I can do it alone. It’s not like I have a job, family, social life to keep up with simultaneously or anything…
Here are 6 Reasons why you don't need a Real Estate Agent when buying New Construction
1) They’re free. Who likes free anyway?
Did you know that a Real Estate Agent costs you nothing? The builder will pay them out of a pre-determined pile of money. Did you know that a builder won’t reduce their price just because you aren’t working with an Agent? The builder is motivated to sell a house at its highest value. They can’t reduce their prices or it will minimize values in the development.
2) They know too much about negotiating.
If the builder’s not going to tell me about an upgrade allowance or a beneficial addendum to the contract, then it wasn’t meant to be. I don't need extra protection… Said no one ever.
Real Estate Agents understand which builders offer what incentives. Some offer closing cost assistance, some don’t include the washer & dryer, some don’t include refrigerators, some are better than others at honoring their Home Warranty.
3) They care.
An Agent considers your time, money, and interests first and foremost. They have experience with all the builders in their area and know their reputations. They will act as a confidant the whole way as you decide on a builder, read to understand the contract, lock down an interest rate, and conduct inspections.
4) They don’t work for the builder.
Most builder site agents are very pleasant, likeable people. That’s why they’re in a sales position. Ultimately their check is written by their company and they’re held to the builder's protocols. Wouldn’t it be nice to have a professional to talk to who’s only interest is yours?
5) They will keep me from over spending on upgrades and other over-improvements so my house will appraise.
As fun as the design center is with their marble countertops, glass cabinets, fancy faucets, and real hardwood floors, you must have restraint. It is all too easy to tack on upgrades and forget the dollar amount sky-rocketing. There is such a thing as an over-improvement, which means you are putting more money into the house than you will ever get out of it. A Real Estate Agent is knowledgeable about the area you are moving to and can help you make common sense upgrades that will appraise and not put you in a tough position.
6) They understand numbers too well.
Tying in nicely with #5, a Real Estate Agent can help explain the numbers to you. What will you be paying monthly? What equity will you have moving in? What are the property taxes? What is a CDD and HOA? How long do you have to stay there before you can re-sell and break even? What are other financing options? What are the projected interest rates when it comes time to finalize financing?
Hopefully you see the amazing benefits of having a Real Estate Agent walk with you on this journey of New Construction. Not only is it free for you, they can help you save money, ensure the integrity of your timeline, and you could potentially make money just by hiring an agent…
Here’s how: As affiliates with Homes for Heroes®, Katie and Eric give back 25% of their commission to military (veterans included), medical professionals, first responders, teachers, and police. That’s a nice cherry on your free ice cream sundae, isn’t it?