Do I need a realtor if I am looking at new construction?

Hello Heather,

You received many excellent advice from other realtors. I will just add this last piece of advice.

A realtor job is to buy and sell houses all day long for his clients. He has come across good builds and some nightmares. Buying a house especially building a new one can get complex and stressful. Your realtor can be the go to person to provide support.

Chris
Coldwell Bankers
www.ChrisRealEstatePro.com
832.859.8698

hello heather
as a matter of fact its your personal choice but having a realtor is always a best choice because of the fact that a realtor knows more than you especially in case of a buyer because of all the complications that might seem ok for a buyer but it might be a catch.

Hi Heather,

Yes you need a realtor when working with new construction. Here are the top 10 reasons why you need a realtor when working with new construction:

1) The sals agent does not work for you
2) Your Realtor is your advocate and works for you
3) Realtors will help you compare communities- does the community have the amenities to match the annual HOA dues?
4) Your Realtor will show you what comparative properties sold for in the area
5) Knowledge of past and present builder promotions
6) Expertise on the best upgrades to help your resale value
7) Tax purposes- make sure you understand if it's new construction that the appraised tax value may just be for the lot- and your taxes could drastically increase the next year.
8) Understanding the title process
9) Understanding the building process and potential hiccups along the way
10) Our services are complimentary to you!

Heather,

Happy New Year! Great question! I hope you are well on your way to home ownership by now! Having worked in new construction myself, assisting multiple clients with their new construction purchases, and having purchased 2 new construction homes personally from separate builders, I thought a little insider insight may further assist you! One thing to know right off the bat is that it is almost ALWAYS good to have a realtor on your side when dealing in anything having to do with real estate. Just as it is ideal to have a doctor in your corner to find a cure for your sickness or a lawyer in your corner to prove your innocence. Purchasing a new construction home is no different! A great REALTOR (especially one with experience in this field) can inform you about differences in each builder (other than what they tell you themselves), negotiate the best deal for you, suggest an outside inspector if you would like one, walk you through each step along the way so that you won't be lost, continue making sure your wants are being met throughout your entire experience of the build, and ensure that the builder is sticking to the contract agreed upon (sometimes this can be daunting for a consumer on their own). It's a great feeling walking into each different builder knowing that you are not about to be taken advantage of, because you have an expert walking in with you to keep them in check on your behalf!

Side note: REALTOR representation will not cost you dime in this process since in our Great State of Texas REALTORS are generally paid by sellers/property owners! If you still need and would like assistance and expertise in this huge step in your life, feel free to reach out me directly! Also, follow the link below to see what my clients have to say about me!

Cody Mier
Intero Real Estate Services
(832) 373-9755
cody@interohouston.com

I believe so, he will help you in three ways:
1) Negociating the sales price and making sure you get a fair price for it
2) Making sure the contract protecs your interest
3) Help you select the right features/upgrades that will make your house nicer and more valuable

Heather,
As a consumer entering an area that you may not have much experience in, home buying, then it is suggested you work with a Realtor. Home buying can be a stressful scenario for some especially for those that attempt it with out a Realtor. Here are my top reasons for using a Realtor:
1) A Realtor works on your behalf and not the builder. This means I am truly guiding you and presenting to you the different options that fit your lifestyle. When you visit a builder and interact with the sales representative they work solely for the builder and have their best interest at hand which is selling their product. You will not meet a sales representative in a particular model home recommending you to visit a nearby builder because they may have a better product.
2) Often builders will suggest you use their lender in order to get the deep incentives they are offering. Working with a Realtor, they often know if certain builders are open to using other approved sources for financing while still getting you the incentives.
3) A Realtor, helps keep the process going smoothly and on a timely manner. Negotiations continue through out the process from beginning to end.
4)A Realtor can keep you informed and will be your point of contact if you need answers to a question regarding the process.
5) Some misconceptions is that buyers choose not to use a Realtor because they think they will have to pay them a commission for purchasing a builders home. The buyer does not need to pay the Realtor, the commission to the realtor is paid by the seller in this case the builder.

Heather, I hope this helps in your decision making if to use a Realtor or not. If you have any more questions feel free to ask.

I think it's a great idea to work with a Realtor because we have access to sales. Also like if snag someone like me I have 22 years, I have built, I have worked for builders, I know alot about the construction loans ect... I been around so I have some pointers to possibly save you a ton of money or not! But Im no cost to you, I have vast knowledge of alot fair market values and I will hold your hand from start to finish.

Hi Heather, there are quite a bit of advantages when working with a realtor, especially during the lengthy process of home building. As many Realtors have already pointed out, you don't necessary need one but the question is why not. Realtor is there to watch your back at no cost to buyer. I would use one every time personally. Hope this helps. Happy house hunting!

Join

You don't "need" one, you could do it yourself .. but why would you want to? The builder is paying the fee for you to have the agent .. hellooo?? On my new construction home I used an agent .. and she saved me money and "smoothed over" some minor problems/disagreements. Not only do I recommend you work with a realtor, I also recommend you hire an inspector and don't fall for the "it's already inspected twice .. but our guy and by the county, you don't need an inspector." Yeah, well... you would be amazed at what the inspector found (this guy nobody said was needed). I opted for a staged inspection and he did inspections at 5 different stages of construction ... poured the slab, framing, electrics/plumbing before the sheetrock went up, etc. .. and of course a final walk-through. Well worth the money; you may want to consider that as well. Good luck! Judith

Heather

To answer your question "do you need a realtor". The simple answer is no you don't "need/required" to use a Realtor. However the question is "SHOULD I use a Realtor when I'm looking at new construction". The answer to that is a resounding YES! The sales agent at a builder's site can be very helpful and informative, however they work for the builder and have no fiduciary responsibility to you. In a purchase as large as a home, and as overwhelming as building or buying, it is important for you to have an expert on your side who can represent you and your interests. Some advantages are:
1. It cost you NOTHING to be represented by a buyer. That's right, the builder will pay the Realtor fees at closing
2. A Realtor can offer you sound advice regarding pricing, input on location, return on investment of upgrades etc
3. A Realtor is looking out for your interests. For instance you may want new, but there may be a comparable home that may better suit your needs. They can show you new AND existing home.
4. A Realtor can save you time. I have assisted many buyers looking to buy new and saved them time by locating various new construction neighborhoods and did the legwork for them to find out schools, build times, taxes, price range, flood zones etc.
5. A Realtor is YOUR advocate. If you are feeling out of the loop, confused about the process or not getting answers from a builder, a Realtor can assist you.
6. A Realtor can recommend home inspectors to check progress during the home build.
7. From their experience a Realtor can ask questions that may not occur to you so you are well informed. These can be as simple as "are blinds included?", "do you sod the yard?" to more complex items.
8. A Realtor can review your contract before you sign to ensure that what was promised and agreed to is included in the contract
9. A Realtor can assist you with the sale of an existing home, if needed, and work so both transactions can close smoothly

Hi Heather!!

I would absolutely recommend using a realtor during your negotiation with a Builder for new construction. I've personally worked with a lot of different Builders with Buyer clients of mine (and on the flip side, sold homes in which the Seller purchased new construction going directly through the Builder and lost money on the sell). A couple of things to consider:
1) Is the neighborhood a brand new development, an extension of a newer/recent development, or a neighborhood where the Builder is nearing completion and there are a mix of resale and new construction? The answer to this is extremely important when looking at list price and formulating a purchase price, considering most importantly, the appraisal!! As the owner of a residential appraisal company, we work frequently with new home communities. Many times they have access to comps/sales that aren't disclosed in the MLS. This is so important when looking at what price you want to be at in the neighborhood.
2) Builders aren't necessarily selling what they used to sell a couple of years ago. There are more inventory/spec homes on the market than there were before and typically there is more room to negotiate on these.
3) Is your purchase contingent on selling your current home? This makes a difference and you'll want to be informed of the specifics of the Builder's contingency contract.
4) You should be advised how the earnest money works on new construction, the new construction/Builder contract, inspection period, working with the Builder's Lender, etc. Builders are not going to divulge all this information. The sales associate is simply looking to get you contracted on a house and push their in house lender.

Please feel free to reach out with further questions. I'm always happy to help. I'd gladly share my experience I have with various Builders and my thoughts on the communities you are interested in.

Darby Grimmett / KW / darby@darbygrimmett.com / 936-827-9217