Why to work with a realtor during new construction
In this market where we are experiencing low inventory, more people are looking to build their new home, rather than buying an existing one. New construction raises the question, “do I need a realtor if I’m going to be building?” I think the answer to that is yes because of the mistakes that I have seen my clients make in the past. There are quite a few things that we can help you with:
1) Financing. This can be a little trickier with new construction as financing depends on the type of builder and project that you’re doing. We can help you choose which financing option makes the most sense for your situations.
2) Upgrades. When building your own home, upgrades are attractive and can add up quickly. The only problem with that is when you over-improve the home, it will not appraise at the end of the project. We can help advise you on what upgrades are wise to invest in.
3) Builders. We would love to help you find the right builder and help you interview them. We have worked with many builders in the past and know their reputations so we can help you find a good fit. It’s easy to go into houses and fall in love with the surface upgrades, which doesn’t mean the house is well constructed. Also, often times the model home includes upgrades that you may not realize when you first walk through. This results in the price being a lot higher than you initially expected. We can help to clarify what is in the base price and what items are upgrades.
4) Negotiating. Builders are more negotiable than you think. They are very aware that they are building their own comps so negotiating may not be on the price, but on other things such as upgrades or the landscape.
5) Clarity. Just like we do when buying an existing home, we can make sure that you understand the contracts. When you hire a real estate agent during new construction you can rest assured that you have someone who is negotiating for your best interest. It is important to have somebody who has been through this process before, knows what to expect, and can help you along the way.
If you’re thinking about building a home or a know a friend or family member who is, we would love for you to send them our way. Building a new home is exciting and we would hate for you or anyone you know to have a negative or frustrating experience.