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When building a house, the builder is not necessarily on your side. I know that’s a strange thing to think about, but it’s true.
The builder and their representatives are there to make sure THEY make as much money as possible, and so, even when building, it can really benefit a buyer to have an agent there to represent THEM. Here’s a few reasons why.
Firstly, an agent experienced in new home construction will have a good idea of the best home builders in your area. They’ll help you compare warranties, workmanship, and track records for resolving issues that tend to vary from builder to builder. Additionally, an experienced agent can let you know the best time to reach out and start the process of building. Believe it or not, many big builders are publicly traded companies, and thus have profitability expectations from their shareholders. Knowing this, it’s possible to time your purchase to provide extra benefits or even a better price.
Second, a Realtor can stand up on your behalf. If you go straight to the builder without an agent, you’ll be letting the builder’s agent represent you. This agent’s job is to make the builder money and get you to upgrade as much as possible. If you have no experience building a home, you may not know what is normal and what isn’t, opening you up to the risk of being taken advantage of. Additionally, since an agent specializing in new construction goes in representing YOU, they can actually negotiate on your behalf. When you’re looking at homes to build and their subsequent prices, you’re almost always seeing a base price with little to no upgrades. But the major benefit of new construction is undoubtedly the customization opportunities to the home. So if you really want that customization but also want to get the best price possible, you should really think about having someone in your corner, advocating for YOU.
And finally, an agent can help you with home inspections and contract contingencies. It’s pretty common knowledge that you should always get home inspections when purchasing a pre-built home, but they are equally important when building a home as well. New homes are complicated structures and the people that build them are human and capable of making mistakes or skipping steps to save time or money. The last thing you want to deal with after moving into your brand new home is a pricy foundation repair or electrical rewiring that needs to be done. It’s important to remember that, if you choose to have a real estate agent represent you during the building process, you need to be represented from the very beginning before even stepping foot in the builder’s office. Builders usually will not allow agents to step in after the process has already started, so your first step should be contacting a trusted agent.
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