New home construction is one of the ways the housing market is providing options to home buyers. Inventory has been low, which means new construction provides inventory. The Triangle itself is in the middle of a new construction boom. In the first quarter of 2016, in Durham, the new construction housing went up 36% with 448 building permits issued. If that’s not an indicator of a new construction housing boom, what is?
Builders are all but racing to fill the demand the housing market is seeing. In the Triangle, new construction is on the rise. Surely, you’ve seen the “move-in ready” or “prices starting in the mid-200s” signs beside new developments. The benefits of new construction are almost as numerous as the communities themselves. Builders offer warranties, there is no negotiation between owners, and the process is a bit more predictable.
Just because the process is predictable doesn’t mean you won’t need the guidance of a buyers agent! Without a realtor or buyers agent, your only guidance is from the builder themself.
Why You Need a Buyer’s Agent When Buying New Construction
This may be a surprise, but the why is the same for any circumstance you’d need a buyers agent in. Here’s a quick refresher on why working with a buyer’s agent is in your best interest:
- A buyer’s agent works solely for you
- They have your best interests at heart, committed to the buyer (not the seller!)
- They can disclose more information, even the negatives of a property
- Not only are they skilled in back and forth negotiations, but buyer’s agents are committed to your best interests so they’ll protect your finances
- They are legally obligated only to you, instead of to the seller as well
Buyer’s agents are there to advocate for you. Ready to work with you as a team, buyer’s agents can make a world of difference in how smooth the process can be. Working with a builder means deadlines, schedules, paperwork, and financing. Some builders have a preferred lender; your buyer’s agent can help you negotiate incentives if the loan works for you. All of these facets of buying new construction are easier when you have someone working with you to get the best deal possible.
No company, or builder for that matter, actively wants to reduce their listing price on a home. It can negatively impact future business, as well as sales. Instead of reducing the price of a home, a buyer’s agent can help you save money in other areas. They’re experienced with the process, so they know to ask about closing costs, upgrades, or improvements on the home. Can you say buyer satisfaction?
Why Someone Might Opt Out of a Buyer’s Agent
There is some mythology out there about buyer’s agents. Especially when it comes to how they’re paid. Thinking you’ll have to pay the buyer’s agent can be a turn-off, but in reality you’re opting out of a helping hand. To protect your best interests, you need a buyer’s agent.
The seller pays the agent’s fee, regardless of whether it’s new construction or other home buying transactions. As a buyer, you won’t pay the buyer’s agent anything. That’s the job of the seller. Most builders will actually prefer working with a client who has a buyer’s agent, because they know the transaction will move along smoothly. Real estate professionals are a community, meaning the buyer’s agent and builder may work together again. Working with a buyer’s agent helps the transaction run smoothly for everyone.
Find Your Buyer’s Agent
When you’re getting ready to look at new construction homes, be sure to bring your buyer’s agent with you. Failing to do so will mean you’ve lost your chance to be represented by the buyer’s agent at the cost of the seller or builder. Bring your buyer’s agent with you when you visit the site, meet the builder, or look at the model homes.
Buying a new home is a little more difficult and time-consuming than buying a resale home. We can professionally guide you through this process. Having spent years working with builders, Team Jodi has a rapport with them and a database of information about subdivisions, floor plans, etc. Team Jodi is also very familiar with new home warranties and the nuances of the builder’s purchase contracts and various home inspections.
At Real Estate Experts, we want to be your ally while you look for the best home for you. You’re not getting an agent, you’re getting a team. We’ll work with you every step of the way, from financing to floor plans. Start to finish, we want to help you get into your new home.