6 Important Reasons to Work with a Realtor when Buying a New Construction

Choosing whether to purchase an existing home or build a new one is one of the initial decisions that must be made during the home-buying process. If you decide that you would like to explore the new construction route, the next decision that needs to be made is whether or not you want a real estate agent. 

When purchasing new construction, you might or might not need a real estate agent, depending on the laws and regulations of your state. In most situations, there are way more reasons why you should hire a real estate agent when buying new construction rather than attempting it without a real estate agent. Without representation from an agent is basically blindly signing away your money for a new home.

Here are a few of the most important reasons to hire a real estate agent when buying new construction.  Read on and discover why hiring a real estate agent can help you save time, money, and frustration.

1. The Connection with the Right People

Your agent will assist you in locating a superb house builder in a neighborhood that meets your needs. Your agent's network of vendors and home builders will save you the time and effort of doing a search from scratch. You get to benefit from this network because that agent more than likely has already worked with great builders they would recommend to match your needs. Even if the agent has not worked with the builder you want to use directly, they have connections within their network to get referrals and recommendations from other clients and agents. Instead of wasting time on meetings and research, let your agent guide you through the process based on what will match your needs and be the greatest option for your family.

This also applies to your agent's ability to recommend a quality lender. Mortgage finance for existing homes is very different from financing for newly constructed homes. Financing for new construction is not offered by all lenders.  It’s recommended that you try and utilize a local lender when buying a new construction. A real estate agent who has experience with new construction will be able to give a couple recommendations to lenders who offer new construction loans.

2. The Right Community for You

Your agent can be a big help throughout the process, whether you are buying new construction in a community or developing on a lot inside a neighborhood. Your agent will inform you why your purchase will best serve you, including information on neighborhood comps and the value in the current market. Work with your agent to help find you a neighborhood that best fits your lifestyle, which could be outside of the areas you would look at on your own. A real estate agent is concerned with your present and your future; they are not only interested in selling you a lot or a new construction. In case you want to sell later on for a profit, your choices should be long-term-oriented.

3. Recommendations on Upgrades and Modifications

An allotment is typically given to a buyer for items like lighting fixtures, carpet options, cabinetry, counter tops, and other home amenities. Using a real estate agent helps lessen the likelihood that the buyer will spend money on an unnecessary renovation or improvement. Not only will your agent be able to ensure you get the upgrades and modifications that will best suit your lifestyle, but will also help you make decisions that will increase the value of your home in the long term because they can help you understand the cost of an upgrade versus the potential return on investment. 

4. Handling the Contract Contingencies and Inspections

The contract and any related papers will be handled by your agent, who will make sure to evaluate them to make sure they are in your best interests. They will be able to help you break down the best loan types, purchasing processes, and steps to take that benefit YOU, not the builder. You want to make sure you have a professional and experienced new construction agent who is experienced with the paperwork and contracts and knows how to make revisions that work in a way that makes you happy. 

Home inspection is also important when purchasing an existing house, and that is equally important when buying new construction. Many buyers who are purchasing new construction believe that since the home is brand new that they don’t need an inspection. The fact that a real estate agent knows what inspections to suggest to a buyer is yet another benefit of working with one when purchasing new construction.

5. The Negotiations

Buying new construction can get pretty expensive and in a hurry. Having a real estate agent who can represent you and negotiate on your behalf is essential during the purchasing process. The freedom to customize a new home is one of its advantages.  With the customization of a home comes an increase in the price. You don't want to end up overpaying for the home - it could put you in a tough spot when it comes time to sell. Most builders will have a list of prices for upgrades and changes to their floor plans. A real estate agent who has experience with new construction can help negotiate the prices of these upgrades and changes to floor plans. In order to make sure you are paying a reasonable amount for the property, your agent will be able to do a comparative market analysis.

6. Provides Representation

When buying new construction many buyers believe it’s a good idea to not have a real estate agent and to use the builder agent. The thought process behind this real estate myth is that it can save them money which is absolutely false. Keep in mind that this builder agent works FOR the builder, NOT for the buyer. By having a buyer's agent of your own, you can ensure there is a professional on your side that can walk you through the process and avoid being taken advantage of during the transaction. If you end up working with a builder who isn't holding their end of the deal, they will have the power to make connections that ensure the builder holds their end of the contract terms.

Bottomline: If you decide that you’d like to buy new construction, as you can see, there are lots of benefits to hiring an experienced real estate agent. It’s strongly recommended that you do not attempt it without representation. It can be quite beneficial to have a professional working on your behalf because it will help you save a lot of time, money, and stress.

Are you considering buying a new construction home in the Nashville/ Franklin area? Contact me today and I'll be glad to walk you through the process!