New Construction – Who represents the Buyer?

Just like the smell of a new car, the feel of a new home with those shiny new appliances, scratch free floors and no worn carpets. The home is brand spanking new!  Fresh and clean, without so much as a finger print on the walls.  But wait!  What are you really buying and who will represent You.

First and foremost the builder's sales agents are paid to represent the builder, regardless of what they may tell you. Site agents in the development offices do not represent you, the buyer, nor do they have an obligation to look out for your interest, they too, are the agent of the builder/seller. 

Due to the high volume nature of brand new home sales, many will use high pressure tactics to persuade you to sign the contract. Most of the builder's sales agents are paid less than a traditional commission, and some earn a salary plus incentives, so turnover is important to their livelihood.

You need a real estate agent that is representing you and you alone, not the Builder.

The main benefit of buyer agency is that buyers can be assured that they have their own real estate agent who is looking out for that buyer's best interests. Additionally, this service is "free" to the buyer, because the buyer agent's commission is typically paid as part of the overall seller's commission.  Don’t be fooled, for newly constructed homes, the price buyer pays when they work with an agent, and the price they pay if not working with an agent, is the same. 

While most development companies build a good product and stand behind their work, it is important to be knowledgeable about your rights, especially information about what type of new home warranty you might receive. 

Top 10 reasons to use a Buyer’s Agent

1.      The Buyer’s Agent represent you not the Builder

2.      Buyer’s Agent will Review Builders reputation for quality and warranty service.

3.      Buyer’s Agent will Review development guidelines regarding investors.  Are your neighbors renting that new home or are all homes owner occupied?

4.       Buyer’s Agent will Review the builder’s purchase agreement.  These are designed to keep everyone out of court, but they don’t necessarily contain language that protects the buyer.

5.      Buyer’s Agent will Review contingencies and cancellation rights.

6.      Buyer’s Agent will Confirm materials used in construction.

7.      Buyer’s Agent will Verify Options and Upgrade pricing.  This is where most builders really make there profits.  What upgrades can you put in after closing?

8.      Buyer’s Agent will Verify timeline for all selection items.  Does the contract allow the builder to make selection if you miss your deadline?

9.      Buyer’s Agent will Verify with your lender that options and upgrades are included in your financing.

10. Buyer’s Agent will Verify home inspection timeline.  Always, get a home inspection when you buy. The builder will offer their walkthrough. That is not enough!   Hire a licensed and accredited individual to perform the inspection; not your dad or your buddy contractor, get a real inspector. Be there for the inspection and ask questions because a new home can contain defects. 

I will be the agent that is there for you when there are bumps in the transaction; the permits are late, the house won’t be ready in time, the carpet was wrong, landscapers forgot to install the sprinkler system, A/C unit not installed properly, the bathroom vents   going up in the attic and not outside, the house is the wrong color.  These are all real events that I have helped my clients resolve.