New constructionhomes are popping up all over Orange County. Most buyers walk in and decide to buy without consulting a Realtor® of their own. But like any home purchase, buying a new construction home is an expensive, serious business with many financial implications. That’s why it’s a good idea to obtain representation from a Realtor®, and here’s why:
1) That smiling sales agent on site at a model home represents the builder and the builder only. They are not there to “help” you, the consumer. They are there to get the builder the most money for their home. No matter how comfortable you are with your negotiating skills, I strongly recommend having a real estate professional represent you so they can help you through all phases of the process (i.e. contract, construction, walk-through, and closing). Sales price is not the only number to be negotiated in a home purchase. There are thousands of dollars-worth of “fees” associated with a home purchase contract. Do you know what they are and who is paying them? Your Realtor® will. They will help you negotiate fees, upgrade options, financing terms, closing costs, and much more.
2) Your Realtor® will help you understand your contract and contractual obligations to ensure you do not miss out on important opportunities throughout the process such as when you may schedule construction inspections, to what point you can make changes in the construction process, etc. They will help you understand how contract clauses, riders and upgrade options affect you and make sure you understand your obligations and needs before you sign on the dotted line.
3) A good Realtor® knows the builders in his or her market. They will be able to educate you on builder reputations and reviews and help you ask the right questions to ensure you are selecting a quality builder in your market.
4) Your Realtor® will fight for you and has far more pull with a builder than you. Issues OFTEN arise in construction of a new home and you may not get the answer you want if you are asking a builder to fix something you do not agree with. However, builders need to maintain their reputations with Realtors® because Realtors® sell their homes… over and over again… and can quickly affect their sales numbers if our clients are not satisfied. Realtors® know building standards and how to represent you. Would you go into a court room without a lawyer to fight for you? Why go into the largest purchase of your life without someone to fight for you there too?
5) Just as they will with pre-owned homes, a Realtor® will ensure you are comparing apples to apples when comparing new construction homes. There are a LOT of factors that go into building a home. For instance, if you compare two homes listed at the same sales price and it appears the differences only come down to floor plan and personal preference. In reviewing the builder’s standards, your Realtors® would realize one builder’s standard energy efficiency rating would assure a $100 per month electric bill savings over the other. That is a $1,200 a YEAR savings for you year after year. Other items to compare: what appliances come standard (compare energy efficiency, stainless steel vs black, etc), what quality/level of flooring, what quality/level of counter tops, is an irrigation or sprinkler system included and will it cover front and back yard or just one or the other, is the home plumbed for a water softener, what is the standard size of the 2 car garage, will a fence cost extra, is the cover over the back patio standard or an upgrade for which they will pay? The list goes on and on.
6) Don’t fall for the sales pitch! It is easy to get swept up in the excitement of touring a beautiful model home. However, it is important to have a Realtor® bring you back to reality and ensure this home really does fit your needs. A builder’s sales representative is there to sell you on all the good points of the neighborhood but your Realtors® will look out for your best interest when it comes to researching important points such as flood plains, property tax variances, potential for commercial construction in your “back yard,” changing school zones, HOA Rules and much more!
7) Your Realtor® will save you a LOT OF TIME! Signing the contract is just the start of the process of buying a new home. You need to compare financing options and terms, work with the title company to ensure a smooth, cost efficient, and timely closing, attend numerous inspections, and so much more throughout the construction process. Your Realtor® will manage that process for you and save you hours upon hours of time and headache.
Cesi Pagano
National Builder Trade In Program
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