Although 97% of homebuyers utilize the services of a Realtor <http://www.micheleflory.com/> when purchasing a resale, they don’t realize that a Realtor is even more important when purchasing a new home. A market knowledgeable Realtor representing you is critical to achieving your goals in the purchase of your dream home. Consider the following eleven facts.
1. It does not cost you anything
Many buyers have the misconception that they will save money by going directly to the builder. They think they can negotiate the amount of the commission off the price of their home. Some buyers even think that they will be required to pay for a Realtor’s services/representation.
A sound investment idea! This is absolutely not true! The builder has allotted marketing dollars to pay the Realtor’s commission and should you come unrepresented 1 of 2 things will occur- the builder’s real estate agent will be compensated more than they would have been if you had your own agent and/or the builder will pocket more money to spend on marketing.
2. Lot size and location
The lot you select will determine a significant amount of the home’s future value. Your choice should not be based on what the builder needs to sell but what gives you the best return on your investment and meets your individual needs.
A sound investment idea! Make your selection based on your personal choice and then let me assess it according to how it will appraise in resale in relation to other lots available.
3. Personal Representation
Who is on your side protecting you and the investment you are making in your new home? The real estate agents in the builder’s sales office are employed by and represent the builder. The designers at the Design Center are employed and or affiliated with the builder. The subcontractors and customer service personnel that conduct your walk throughs are all employed by the builder.
A sound investment idea! I will represent you solely! As an active real estate professional, I am constantly abreast of the price changes in our market and have been able to negotiate several thousand dollars off the price just before closing. This only applies when the builder has had price reductions since your time of contract, however within your contract it states that you are bound to the sales price and the builder is not required to reduce your sales price, even if they have made price reductions. If you have no Realtor or an inexperienced/passive agent, it could cost you thousands of dollars!
4. Get clarity on upfront, non-refundable expenses
When entering into a new home transaction with a non-represented consumer builders often do not explain what expenses are upfront and/or nonrefundable.
A sound investment idea! Let me assist you in the process before you sign anything and make sure all of the costs, upfront, nonrefundable and long-term, are clearly communicated and understood by all parties.
5. Get a Home Price Evaluation before you sign
Builders do not generally know how the market treats its product in resale. Once you purchase the home, it is your investment.
A sound investment idea! Let me give you a Home Price Evaluation on the property based on how it would compete in the market today. This will tell you if the lot, floor plan, and your selections will most likely retain value in relation to the current market.
6. Get the best loan for your needs
Builders often offer monetary incentives to work with their mortgage company and this may not be in your best interest.
A sound investment idea! Let’s compare the builder’s incentive with the actual mortgage product as well as other products available on the market that are competitive. You may pay more in mortgage closing fees than the actual builder incentive is worth.
7. Watch for those appraised values
A builder often gets his mortgage company to qualify you based on the assessed value of the unimproved property. When the property gets reassessed with the improvements of a home, the increase in taxes can place a tremendous financial strain on a budget based on a lower tax assessment.
A sound investment idea! Let me review property taxes in the neighborhood that have been reassessed with improvements and make sure you are comfortable with the house payment based on the future tax. In this way, you know your future obligations before you purchase.
8. The home is new, why should it be inspected?
Your builder should stand behind warranties and guarantees, however, making needed improvements/corrections to the construction after you live in the home or addressing code/repair items after your closing may be costly, inconvenient or at the very least, complicated.
A sound investment idea! Let’s get a qualified inspector to give you a professional opinion of current condition and potential future problems. Often, this can result in making a builder bring the home up to a code that although not currently required may become an issue in case of future annexation. It will either be the builder’s cost or your future cost and you are the one I represent.
9. Market Knowledge
In addition to the immediate value of the home, there are other important facets to purchasing that should be considered. When you work with me, disclaimers and disclosures endemic to the area/subdivision, addenda regarding homeowner’s associations, recent information regarding the surrounding community, the local schools, and utility districts, will all be presented and evaluated.
A sound investment idea! Allow me to guide you through the myriad of local market conditions so you can be an informed homeowner and make the most of your homeownership experience.
10. Do you need to sell your current home in order to purchase new?
Clearly, the builder has an interest in the selling of your current home. You should personally select the REALTOR who will be representing you and be wary of builder recommendations, which may come with hidden incentives that do not serve consumer needs. Few builders know the actual performances of Realtors in resale, and make recommendations that are not based on representing your interests, but their own. Choose a Realtor whose goal is your highest possible profit and not their builder allegiance.
A sound investment idea! Allow me to give you an honest Home Price Evaluation. This gives you a good idea of the equity you will be able to reinvest. If at anytime you are not happy with my services, you can be released from our agreement.
11. Home Services to save you time and money
There are many services you need in a new home purchase, for example, moving company estimates, utility connect and disconnect, cable or satellite hook up, and estimates on homeowner’s insurance. The builder expects you to handle all of these on your own.
A sound investment idea! I have a complete list of service providers. If moving from outside the area, one of our support staff can establish necessary accounts on your behalf.