Why You Need An Agent When You're Buying New Construction

In this article, Perry & Co. Realtor Brad Colburn hasprovided some important insights into why you need an agent whenyoure buying new construction.

1. Its Complicated

Buying a new construction home is complicated. Thereare many steps in the process of building a home as a purchaser.Understanding the floor plans, elevations, standard options,upgrade options, lot choice and premiums, the builders contract,the disclosures, the mortgage options, inventory home vs. dirtstart, are you getting the idea?!?

2. Having Representation

The onsite sales person works for the builder! They arewonderful, nice, accommodating and make you feel right at home,but, they work for the builder. That means that they are lookingout for the best interest of the builder, not for you. In Colorado,the builder does not have to use the real estate commissionsapproved contracts, therefore, they dont. Builder contracts arewritten by their legal counsel and protect them and their bestinterests. Having my representation will level the playing field asIm your agent and required to preserve your best interests. Illalso help you understand these contracts, your rights and answerany of your questions before you sign.

3. It Doesnt Cost You

Having a buyers agent, on most real estatetransaction in Colorado doesnt cost you anything. Buyer agents aretypically paid by the seller or the listing agent via a co-op.There are a few cases where the buyer does pay this fee, but, thatsa different blog. Builders happily pay the buyers agent fee formultiple reasons. They know that most buyers work with agents, andtherefore, know thats where the buyers are. They know that buyersworking with agents will be better educated and have fewer problemsas the agent can work as a buffer between the builder and thebuyer. Many people believe that by not using an agent, that thebuilder will reduce the price by the agents commission, this issimply not true. That commission either pads the builders profitsor gets paid to the onsite salesperson! It does not trickle down toyou!

4. Which Upgrades?

An agent works in the business all day, every day. This willhelp you understand where youre going to get the most bang for yourbuck in upgrades. When youre building a new home, most buyers arenot thinking of selling that home, however, youre going to sellthat home at some point. So, thinking about this when youredesigning the home is extremely important. Ill be there through thewhole process to keep resale decisions top of mind. Also, thebuilder makes a cut of every upgrade that you choose. Sometimes, itmakes sense to have the builder make the upgrades, sometimes, itmakes sense to have the standard installed and upgrade after thefact. There are many upgrades you can do after you close for farless than the builder charges for them. Ill help you navigate thoseitems and the entire upgrade process.

5. Walkthroughs

You will have many walkthroughs throughout thebuilding process. I will help you decipher what theyre speakingabout. Ill assist in where to put the switches, lights, outlets,smurf tubes, low voltage wiring, ceiling fans, egress windowsduring the pre-drywall meeting. The final walk is also important toidentify all of the finish work that needs touching up. You canthave enough eyes at these walk throughs. Having an agent will helpthe builder take your concerns more serious at times. Builders havea tendency to push buyers to close the property and pass you alongto warranty or post closing care. They do this so that theirtimelines look good on paper and surveys. You have less leverageafter the closing than you do before you close, so, get as manyunsatisfactory items addressed prior to closing.

6. Warranty & Post Closing Care

As I mentioned above, warranty and post closing care. You haveno leverage once you close on the property. Most builders offer abumper to bumper warranty for the 1^st year. Buildersusually have a schedule of when they would prefer to work on yourwarranty items. Typically, 3 months and 10 months. They will walkyour home with you at these intervals and address anything that hascome up. Sometimes getting these walks and work completed can bedifficult and frustrating. I help my clients get these done, in aprofessional and timely manner. Builders want to preserve therelationship they have with agents because they know that well bebringing more buyers to them if the entire process is great!

7. Builder Fiscal Year and InventoryKnowledge

I work with all of the builders in the Denver metro area. Theyall have differing fiscal years. Why does this matter? Buildersdont want to carry any inventory into a new fiscal year. Anyinventory homes going into their year- end, builders are likelyvery motivated to sell these homes. Therefore, my buyers can grabthese homes, typically at a discount with no wait for the home tobe built.

In this article, Perry & Co. Realtor Brad Colburn has provided some important insights into why you need an agent when youre buying new construction.

1. Its Complicated

Buying a new construction home is complicated. There are many steps in the process of building a home as a purchaser. Understanding the floor plans, elevations, standard [...]