Should you use a Realtor® when buying new construction home?

Agent meeting clients at the builder model home

There are plenty of benefits to buying a new home. You know that it’s in great condition with new appliances and no upcoming repairs or renovations. For many people, buying new construction is a far better option than buying a resale.

These features come at a cost, though. New homes may cost more than pre-owned homes, and the lead time for new construction can mean that you have to take temporary housing while you wait for completion. If something doesn’t go according to plan, you could end up with a serious financial problem. Buyers need to be very careful during the process.

Fortunately, Realtors® are here to help.

You may wonder if it’s necessary to work with a real estate agent when buying new construction. The builder will have already hired their own employees to facilitate the sale, so it can be tempting to do the transaction with only the help of the builder’s on-site agent.

No matter how simple or straightforward the sale seems, you should always have your own Realtor® to be sure that someone is in your corner.


Shameless plug:
All the agents at North Point Realty are knowledgeable about new construction and work with builders every day! We’ve got your back and will always work to benefit you. North Texas builders welcome us and our clients! Contact an experienced agent now:
Charles Adams 25+ years 
Tammy Goodman 20 years
Marian Porter 19 years
Norma Wall 25+ years

Want to know more about new construction in North Texas? Check this!


Here are five reasons you need your own real estate agent when you buy a new home:

Model home sign - the person who is at the model home is working for the builder.

Understand, the person who is at the model home is working for the builder.

1. The builder’s agent works for the builder.

The builders want to make the process as easy as possible for the buyer so that they get a good price for the construction. In many ways, their on-site agent will be very helpful for you. Ultimately, though, they don’t work for you. They work for the builder, and they have the builder’s interests in mind. To be sure you’re getting a good deal and not overlooking anything, you need a Realtor® who is there for you.

Real estate agent showing a builder's model home to a young couple.

Your North Point Realtor® can show you every builders’ product – not just one – and can help you find the new construction home that’s right for you.

2. Your Realtor® will advise and advocate for you.

Your Realtor’s main responsibility when buying new construction is advocating for you as you work with the builders. They can help

you negotiate on the price or the timeline, and they can advise you on whether or not to pay extra for certain upgrades or appliances in the home.

Most people only go through the home buying process a few times in their life. Real estate agents facilitate countless sales, so they understand the ins and outs of the business. They’re far better suited to negotiating with builders than the layperson because they have a solid understanding of the laws and standards in the industry. They’ll quickly spot red flags or opportunities to negotiate, and they’ll make sure you’re getting the best deal.

3. The paperwork is complicated.

All real estate transactions are heavy on paperwork, but new constructions can involve an especially large volume of documentation. Your realtor will help you decipher and understand the paperwork so that you’re fully informed of what’s going on. They’ll point out any issues or discrepancies they notice, and if necessary, they’ll get you in touch with an attorney to negotiate changes to the contract.

Without help from a professional, you could accidentally agree to unfavorable terms. For example, you may not realize that the builders are using poor-quality materials or unsafe building practices. The builders may try to omit the completion date from the contract so that they can delay the project indefinitely. They could also ask for more money upfront than is reasonable. In many states, there are even legal restrictions on how much contractors can ask for upfront, and your realtor will quickly notice if your builder’s requests don’t comply with the laws in your area.

Hopefully, your builders won’t try any of these shady practices. However, because there’s so much documentation involved in buying new construction, miscommunications and misunderstandings are very common. Having a realtor who can pore over the contracts will give you peace of mind as you sign the agreements.

4. Your Realtor® can help find financing.

Financing new construction in North Texas, like a traditional mortgage, takes place at the closing table. It’s the same as a typical mortgage, the home serves as collateral for the lender.

Most builders in this area have an in-house or preferred lender that they work with routinely. However, if that lender is not resourceful enough to handle your loan – where do you go? You may not have as many financing options, but your real estate agent should be able to help you find the best financing and still keep peace with the builder.

Try this flexible Mortgage Calculator

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5. The builder pays the fees.

In North Texas, the builder normally pays the real estate agent’s fees, so bringing in a Realtor® will add no extra cost for you. When you have the builder paying the fees, there’s no reason for you not to hire a Realtor®. It won’t cost you extra, and it could even save you money because your Realtor® knows how to negotiate on your behalf.

Conclusion

Buying new construction is exciting, but it’s also an intense financial commitment. By hiring a Realtor® to represent you during the transaction, you’ll greatly reduce the risk of errors or oversights. Your real estate agent will make the entire process much faster and easier than if you tried to manage it on your own, and you can always consult with them if you have any questions or concerns. Even if you don’t think you’ll need a Realtor® when you buy a new home, don’t skip this step.

 

We’ve got your back.

All the agents at North Point Realty are knowledgeable about new construction and know how to work with the builder to your benefit. North Texas builders welcome us and our clients! Contact an experienced new construction specialist now:
Charles Adams 25+ years 
Amy Beyer 20 years
Tammy Goodman 20 years
Marian Porter 17 years
Norma Wall 25+ years