Are you thinking about purchasing a newly constructed home? If you are wanting to walk into that model home by yourself, STOP.
I did new construction from the sales perspective and there are a lot of things that people don’t know and understand. Timeframes, deadlines, and contracts that could be two pages or fifty pages long. There are a number of things that go into new construction. Whether you are a first-time homebuyer or a seasoned buyer in real estate, I highly encourage you to have a real estate agent.
Why You Need a Real Estate Agent Before Walking into New Construction Homes
From my legal and financial background and experience with working for new home builders, you’d definitely want a Realtor to help you. Why? Not all home builders are the same.
You need somebody who has experience with home builders in your area because there will be times when some builders will not pay the commission for your real estate agent. You can face these consequences if you walk into a model home without your agent being there with you or without your agent calling ahead of time.
I had one buyer who had always used me for their real estate transactions and didn’t tell me they had walked into a new construction model home on their own. They had a conversation with the builders’ sales agent, looked at the home, and were on the way out the door – the builder referred the buyers to a different agent telling them that they’ll get in touch with the buyers and take it from there if they decided to buy.
The builders then said that they will not be paying the agent’s commission and the buyers will have to do that because they didn’t come in the new construction model home with an agent the very first time they stepped in.
Importance of Being Represented By a Real Estate Agent
To avoid situations similar to this, you will want to have somebody to represent you and your best interest. A real estate agent will help you ask the right questions, help you make sure you don’t miss any deadlines, and ensure that financing stays on track.
Sometimes new builds do not get built on time. There could be times when delays happen or the home even gets completed faster. This is why it’s important to have an agent who’s going to be on your side, advocate for you, and walk you through the entire real estate process.
There will be a lot of contractual obligations on your behalf that you don’t want to miss. Take note! The Realtor or salesperson for the builder is not your Realtor. They are not there to help and advocate for you and take your side if things become an issue.
Don’t get me wrong, there are some great Realtors out there who work with builders and I was one of them. I kept people updated and answered all their questions to the best that I could but at the end of the day, I was not their Realtor.
It’s really important if you’re looking at new construction to have someone to represent you and be on your side. If you want to learn more about new construction, subscribe to my newsletter or check out my YouTube channel to view more real estate-related videos and things you should know whether you are buying or selling a home! Give me a call at (615) 930-0313, schedule a call with me, or send me a message! I love helping people and using my financial and legal background to guide you in finding your dream home!