Wednesday, February 5, 2020 / by April O'Brien
Thinking of Buying a NEW HOME?
If you’re thinking of buying your new home directly from a home builder – stop! Buying directly could leave you paying much more than necessary for your home. Worse, it can also leave you without recourse if something doesn’t go as planned! This is because a home-building contract is written one-sided – and it’s on the side of the builder!
Here are 12 important reasons why you need a Buyer’s Agent when you are buying a newly-built home, or having a new home constructed.
12 REASONS TO USE A BUYERS AGENT FOR NEW CONSTRUCTION
1. Many Builders sales agents are employees of the Builder. These sales agents represent the Seller and are employed to show model homes, handle inquiries and write contracts. In DE Builder sales agents are NOT required to have a Real Estate license. Since they represent the Builder, they do NOT represent your interests.
2. If the Builder does not employ its own sales staff, they would then hire a licensed Real Estate Broker to represent them, and list their newly constructed home for sale through a real estate agency. That agency represents the Seller – namely, the Builder – not you!
3. Beware that, a builder’s objective is to sell the new home for as much profit as possible. By working with a Buyer’s Agent, you will have the advantage of market data and price comparisons for an accurate value.
4. A builder may give you the impression that nothing in their contract is negotiable. A Buyer’s Agent can help you negotiate anything from home price to material options, to the amount of deposit required, and more.
5. A Buyer’s Agent will make sure that all promises made by the builder are put in writing and that all business is conducted per the DE Real Estate Commission rules and regulations.
6. A builder may have a vested interest in working with certain lenders, attorneys or title companies; but these companies may not be the best choices for you. A Buyer’s Agent can give you more options or at least give you peace of mind that the Builders lender is competitive.
7. A Buyer’s Agent often knows which builders have the best reputations for quality construction and business integrity. The KG Home Team has hands on experience with most every builder in the state. While most home builders in Delaware are reputable, there are varying degrees of quality when it comes to materials and craftsmanship.
8. Builders can make mistakes and/or run behind schedule. You may pay extra for an upgrade and not get it: or, the wrong colors may be used, or fixtures may be missing. Without a Buyer’s Agent on your side, you may find it difficult to get your builder to address any issues. Having a Buyer’s Agent will help ensure that your home is completed to contract specifications.
9. A Buyer’s Agent will suggest contract contingencies to protect your best interests. These contingencies can help you exit the deal if needed, or obtain financial adjustments.
10. A Buyer’s Agent is a skilled communicator and will keep you informed about issues that could affect your interests. A Buyer’s Agent will also help ensure that your closing details are managed, and will communicate between all concerned parties.
11. Working with a Buyer’s Agent does not cost you anything out of your pocket! The Builder already has marketing money set aside to pay a Buyers agent commission, so you get the benefits of having a licensed Real Estate professional represent you without having to pay the commission.
12. Finally, there is the issue of customer service – Communication varies depending on the Builder. If they have sales agents, they may field your calls; but again, such agents are not your representatives, and will not volunteer details that could affect your interests.
The Buyer’s Agents at the KG Home Team combined have over 50 years of experience with NEW construction and have helped many families save thousands of dollars by avoiding potential pitfalls throughout the new construction process.
Let us help you obtain the best results from new construction! Contact us today for information about buildable lots for sale, new homes and for help with your home building questions.