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Buying New Construction - Why You Need a REALTOR®
Dated: December 31 2020
Colorado’s housing market is very active. Housing inventory is low, which drives higher prices, lengthens the home search process, and finds buyers in bidding wars for their dream home. Many buyers find that buying new construction is a better fit for them because there are not competing buyers, and you can customize the home of your dreams.
The allure of new construction is real. You can be the first to use your appliances, break in your home, and make design decisions. There is no need to make upgrades or improvements for years after making the purchase, precisely what many buyers want.
Once the new construction option is chosen, buyers will find themselves in a different kind of experience. New construction properties present a streamlined process where you are encouraged to work with the builder’s agent to make the sale. It may be presented as “complete service” for you to sign up with their agent for the deal, but even in new construction, you need a realtor to represent you.
The builder’s agent is there to advocate for the seller’s best interest (builder) and get the best price possible for their client. Buying new construction is still negotiating a deal, where both parties will advocate for themselves, so buyers must have someone on their side who is focused solely on their needs. While this may come as a surprise, buying new construction still holds much room for negotiation in many areas, which is why you need me by your side.
Hire a realtor to represent you before you begin new construction visits, if possible. Once you sign a contract with a builder, it becomes challenging to bring in other parties. Additionally, you need to know how or if the builder will pay for your realtor before beginning the process. As a member of your team, a realtor can support you with your new construction purchase in many ways, including:
1. Decode the fine print of contracts. New home construction contracts are not the standard boilerplate documents that are often very builder-friendly. Your realtor will comb through the document to ensure that terms are favorable for the buyer as well.
2. Think long-term about resale. Sure it’s fun to customize your home, but this might not be your forever home. Your realtor will help you customize your new home in meaningful ways but won’t negatively impact resale options in the future.
3. Recommending lenders for financing. The new construction agent will have a preferred lender that they will suggest to you. Given that this is a significant purchase, buyers need to shop around to find the mortgage that is the best fit for their needs. Mortgages are not one-size-fits-all and look different for everyone. Your realtor has many vetted resources to support you in your financing process.
4. Negotiating extras. Your realtor is an expert in housing. She knows what areas are likely negotiable in your new home and can advocate for you in everything from paint to a different garage door, upgraded appliances to other options like molding and landscaping. By working with a professional, you will likely end up with a nicer new home than if you ventured this negotiation alone.
5. Oversee the inspection. Your new construction purchase will likely include a walk-through, but not an inspection that consists of a third-party professional’s scrutiny. Because of the fast-paced building schedule, the likelihood that various subcontractors were employed to do the work (think many cooks in one kitchen), and natural human error, mistakes even happen in new home construction. Your realtor will need to advocate for this critical step and oversee the process.
6. Leveraging the benefits of working with the builder’s agent. The builder’s agent knows the community’s proposed development and vibe and will have historical knowledge valuable to buyers. They can speak to available amenities and should be included in conversations, just not solely relied upon.
Our team has experience and knowledge in all kinds of home purchases, and we’re ready to support you in your home-buying journey. Give us a call!
At The Couture Group we are a team of experienced and dedicated professionals who bring a wealth of knowledge and expertise to buying and selling real estate! Holly Couture founded The Couture Grou....
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