Buyers often think they don’t need a buyer’s agent if they are building or buying a new home.
People may decide to check out a new neighborhood on a weekend when they have a few extra minutes or they are thinking about moving into a new home, so they stop by the model to look around and get some information. Find out why buyers need a buyers agent for new construction.
Buyers often get on a builder’s website to do research and end up chatting with a chatbot, or they get roped into sharing their contact information with a sales consultant who doesn’t know much about the neighborhood and is just a gatekeeper before talking to the actual neighborhood sales representative. These self-help tactics usually lead to trouble for buyers; little do they realize that they just fell into the builder’s sales funnel.
The builder’s representative is so friendly or they already know what options they want, so what good would a buyer’s agent be?
The neighborhood representatives will ask buyers questions that can result in buyers giving TMI (Too Much Information). For example, you may not get the full information about available lots coming up in the neighborhood if you tell them you would like to build soon or need to move soon. They will likely push you towards their current inventory of lots, which may be inferior to lots that would be available in the next few weeks.
In popular neighborhoods, buyers see many people at the model home, or wandering around, and feel a sense of urgency. The builder representatives use this to sell more homes. This tactic is particularly common with builders who use VIP lists before public sales start in a new construction neighborhood.
In some new home communities, the “on-site agent” is not even a licensed real estate agent, so they can operate under different rules and laws.
A good buyer’s agent will ask the right questions and make sure his or her client is getting all of the available information. Here are some examples:
- What land behind your lot belongs to you vs someone else
- How restrictive covenants may impact selling the home later
- Rental restrictions (Air BnB or long-term rental)
- Timeline for the community to be complete (including pool and other promised amenities)
- Review the contract – builders usually use their own contract rather than the NC Bar association approved contract
- Clarifying the difference between builder deposit vs earnest money – when it is due
- Amount of possible negotiation room on price and deposit
- Lot selection – the direction the house faces, placement of the house on the lot, slope of the lot
- Expected appreciation on lot choices such as a cul-de-sac, wooded lots, and other premium lots – is it worth the premium price the builder wants for that particular lot?
- Having a witness and advocate at builder meetings
- Which options are worth paying for and which may become outdated quickly
- Clarifying what is covered under the builder warranty and what should be fixed by the builder PRIOR to closing or it likely will not get done
- What are acceptable building practices for the area?
- Evaluate financing offers from the builder’s lender or builder’s preferred lender
Buyers become sellers down the line
Buyers become sellers down the line and then realize that they did not have a key piece of information that would have changed what home they purchased or that the key piece of information they didn’t ask about is an issue for resale.
A Good Buyers Agent for New Construction
A good buyer’s agent is an asset that will ultimately save buyers money and prevent them from purchasing a home that becomes hard to sell later or costs money long-term that undermines that “great deal” they thought they were getting.
If you are thinking about buying or building a new home, let me know and we can discuss your situation. Call or Text Amy for your SHAIR of the market at 919-818-5001.