The AH-HA Moment

J0411716At a neighborhood get together over Labor Day weekend the conversation turned to real estate. We have some new neighbors who are renting and they mentioned that they had been trying to decide whether to buy or wait. As the conversation continued they mentioned that they had been looking at some new construction projects and there was one home that they might consider. However the price was more than they wanted to pay, close to $600,000 so they decided not to make an offer. Of course I had to ask did they have an agent and what development had they been considering?

Knock me over not only was this the development where I had taken buyers last week but it was the same house that we wrote our offer on. Now of course I couldn’t say what our contract with the builder was but it was considerably less than the $600,000 price that was on the builder’s price sheet. When they heard the news they were shocked. They didn’t think that they would have any negotiating room with a builder. Gently I gave them the list of why you need your own agent when you buy new construction.

  • The builder’s representative works for the builder. They will refer you to a loan officer, a title company and inspectors who are all tied to the builder. The contract that they have you sign is 100% focused on protecting the builder.

  • The builder has already figured the buyer’s agent commission in their prices. If you don’t have your own representation the builder’s is not going to discount the home to compensate for your lack of agent

  • Knowledge of other developments in the area. Knowing what alternatives may be available and being able to compare homes across multiple developments can lead to helping you get a better deal on the home you want.

  • You have someone representing you in the deal. As an experienced agent in representing clients buying new construction I understand how to make a “win/win” deal for you with the builder.

  • Ability to connect you with independent lenders, appraisers and inspectors who are looking out for you.

My neighbors had their AH-HA moment and even though the house that they wanted is under contract they understand now that there is a value to having their own representation. The next time they head out to look at new homes I’ll be the one doing the driving. Being informed is the best way to find your new home. If you have had an Ah-Ha moment give me a call. I’d like to help.

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