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I have read several places that people say you should have one, but nothing has given me a reason why.
So, my question is what benefit do you get by having a buyers agent in a new home sale? How does the process work as far as picking out what you want and everything when your using an agent in the mix (new community, all the same builder, next to no inventory sitting so home will likely be built when purchased).
I would recommend that you hire, and pay for a buyer's agent to serve you. They should be experienced in new home contracts, negotiations, and closings. There is a National Association of Home Builders recognized certification as a new home specialist (CSP). I would look for a Realtor with a CRS and a CSP or CNHS designation. But remember, designations or certifications don't mean nearly as much as experience.
If you hire a qualified Realtor to serve as your advocate, you are more than likely going to get better contract, and quite possibly at a price that completely offsets the cost of your representation.
Do your research, you are hiring an employee. Interview until you are convinced that your chosen agent is the best for you.
They can advise you in what choices are expected in that area at that price point. You need to have your house competitive in case you need to sell; people don't plan for emergencies but they can happen.
They are looking out for you and know what is standard in your area for contracts. The sales agent owes all their loyalty to the builder and needs to get the best price for them NOT you.
Curious of why to use a buyer agents with new construction?
Any price the buyers agent gets for you will come of the builders profit. So wouldn't you be better off negotiating with the builder yourself for a lower price?
Builders are typically extremely reluctant to actually cut prices. There are strategies that will allow a builder to "get their price" will offering concessions toward closing costs and other things that result in less cash out of buyers pockets...
Builders are typically extremely reluctant to actually cut prices. There are strategies that will allow a builder to "get their price" will offering concessions toward closing costs and other things that result in less cash out of buyers pockets...
The development where we're looking the builder is cutting prices at a 55+.
Just wonder why bring a buyers agent in when I can make an offer and go from there?
The development where we're looking the builder is cutting prices at a 55+.
Just wonder why bring a buyers agent in when I can make an offer and go from there?
Several years ago, long before the housing crisis, I learned a very good lesson. A buyer had purchased a home from a builder without an representation. The house was a quality joke, on top of an environmental nightmare, and with a horrible loan. They were stuck. Declare bankruptcy, face foreclosure, or pay for an unmarketable property.
Now, by no means does this mean that they were the brightest bulb in the box, but it simply means they didn't have a second set of eyes, someone acting as an advocate, etc.
So, unlike a seller who sells for a bad deal, the buyer who buys a bad deal can suffer for years.
Several years ago, long before the housing crisis, I learned a very good lesson. A buyer had purchased a home from a builder without an representation. The house was a quality joke, on top of an environmental nightmare, and with a horrible loan. They were stuck. Declare bankruptcy, face foreclosure, or pay for an unmarketable property.
Now, by no means does this mean that they were the brightest bulb in the box, but it simply means they didn't have a second set of eyes, someone acting as an advocate, etc.
So, unlike a seller who sells for a bad deal, the buyer who buys a bad deal can suffer for years.
Several years ago, long before the housing crisis, I learned a very good lesson. A buyer had purchased a home from a builder without an representation. The house was a quality joke, on top of an environmental nightmare, and with a horrible loan. They were stuck. Declare bankruptcy, face foreclosure, or pay for an unmarketable property.
Now, by no means does this mean that they were the brightest bulb in the box, but it simply means they didn't have a second set of eyes, someone acting as an advocate, etc.
So, unlike a seller who sells for a bad deal, the buyer who buys a bad deal can suffer for years.
Do you or your agents take responsibility for the build quality of the house, the environmental issues or the loan that your buyers procure?
Here are the reasons why to bring in an agent to represent you.
#1) They will represent your best interests - The sales staff at the model home represents the builder, not you. They do have a legal obligation to be ethical and honest, but their opinion of a good deal may not be a good deal to you.
#2) Experience - Your agent’s primary responsibility is to provide you with advice of the market conditions and values in the area, as well as their knowledge of the legal documents required for the sale of real property. Your agent should have the experience to know what builders in the area are reputable and what to look for with each of them. Not all builders sales tactics are the same and your agent should know how to deal with them.
#3) No cost to you – Builders welcome Buyers Agents. The builders know that the majority of their home sales are through outside agents bringing in the clients and they have budgeted for the commissions already. You will not “Save” any money dealing directly with the builder and it is very likely that you will get a better deal with the right agent representing you.
As far as the selection of the different options, model and colors, your agent would be there to keep you on track to your needs and budget, as well as what fits for the area. You don’t want to build a $500,000 home in a neighborhood that only supports $200,00
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