Thinking about buying a new construction home? One of your first questions might be about whether you should hire a real estate agent. The short answer: yes!
You’re not required to hire an agent, but having one gives you an important advocate and guide throughout the homebuying process. Even better? It comes at no additional cost to you as the buyer (more on that later).
In the sections that follow, we’ll share 6 reasons you should definitely hire an agent even when you’re buying new construction, details on who pays their commission, plus ways to find the right agent for you.
A builder’s agent acts with the builder’s best interests in mind, while your agent is an advocate for yours.
- Real estate agents are pros at negotiating the unique considerations that come with buying a new construction home.
- Agents are objective when it comes to evaluating fair home prices and resale potential.
- Builders pay your agent’s commission, so hiring one comes with no cost to you as the buyer.
- Tips for finding a great agent include knowing your needs, asking for personal referrals, and looking for someone with knowledge of the geographic area where you want to buy.
6 Reasons to Hire a Real Estate Agent When Buying a New Construction Home
They’ll help you find the right builder
If you’ve never purchased a new construction home before (or even if you have), you may not know where to start. An agent can help you find a reliable builder that aligns with your style and home preferences.
Agents know about everything from builder reputations to construction timelines to pricing to communication styles to design aesthetics — all important factors when you’re buying a new construction home.
They’ll be your advocate
Builder’s agents provide important information about the new construction process and can even guide you through much of the buying process — but their ultimate responsibility is to the builder.
When you hire a real estate agent, you know you always have someone working with your best interests as the top priority.
They can help you navigate the financing process
Builders sometimes offer financing for new construction homes, but there’s no guarantee it’s the best offer available. Real estate agents — especially those who have extensive experience with new construction — can recognize a good lending offer and connect you with other lenders so you can compare your options.
They know how to negotiate
No matter what the scenario, it’s tough to negotiate for yourself because you’re personally invested in the outcome. Real estate agents can be an objective negotiator on your behalf throughout the buying process.
It’s also important to note that there are unique considerations that come with buying a new construction home. Builders warranties, fees, upgrades, timelines — these should all be put in writing, and your real estate agent can negotiate them to benefit you as the buyer.
Here’s more on the nuances of negotiating with a builder:
They can evaluate resale potential
One of the best parts of buying a new construction home is that you can customize it to your liking — building materials, finishes, and even floor plans can be tailored to your preferences.
The thing is, a high level of customization can sometimes equate to lower resale value later on. Your real estate agent can guide you to make choices that both fit with your vision for your new home and position you for a successful resale down the line.
They know how to read the fine print
Buying a home comes with a whole lot of paperwork and tons of fine print. Not only can it be overwhelming to a buyer without an agent, but missing something important can have serious financial (or other) implications.
A real estate agent is an expert on the legal contracts and other paperwork involved with the homebuying process. They know what to look for and can be sure you never skim over critical information.
Who pays commission for your real estate agent?
One primary reason homebuyers consider not hiring an agent when they’re buying a new construction is because they believe it will be a cost saver. But this isn’t the case. The builder is responsible for paying your real estate agent’s commission, which is typically 5-6% of the home’s sale price.
This means that hiring an agent is of no additional cost to you — as the homebuyer, you reap the benefits of an agent’s services without footing the bill out of pocket.
How to choose the right real estate agent?
Know your needs
To find an agent that can best serve your needs, you need to know what they are! If you’re reading this article, one likely definite reason is that you’re looking for new construction.
You may have other preferences about communication style, location, level of experience or other factors. Just as you should with any service provider, be sure about what you want in an agent and seek out those that meet those criteria.
Find someone with experience in your area
Familiarity with the neighborhoods, cities, and surrounding areas where you want to buy is a major plus when you’re looking for a real estate agent. They’ll know available properties better, likely have developed relationships with builders, and can share important information about the communities you’re considering.
Ask for referrals
Sometimes the best place to look for your agent is by asking family and friends. Every agent of course puts their best foot forward on their websites and in advertisements. Direct referrals, however, are the best way to be sure about the experience your agent can provide. If you don’t have family or friends who have recently used an agent, try checking out online reviews from past customers of your potential agents.
Ask if they have experience with new construction sales
As mentioned before, new construction homes come with unique considerations throughout the buying process. Many of them — price, warranties, closing costs, timelines and more — require negotiation from your agent. Ideally, you should find an agent who has experience with new construction purchases and can expertly guide you through yours.
Go with your gut
Ultimately, your agent needs to be someone you like and trust. If you’ve done your research, asked for referrals, vetted a few options, and ensured they have the right experience, all that’s left to do is listen to your intuition and go with the agent that feels right for you.
Over to You
Looking to buy a home in the Dayton area? Oberer Homes can help you find (or build) a new construction home that you and your family will love. Visit our website to learn more about the floorplans, features, and amenities our homes and communities offer.
If you’re ready to start your home search, contact us today!
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