Tuesday, October 13, 2015 / by Jason Huerkamp
Should I Be Represented When Buying a New Build Home
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When considering a new home build please be sure to have a Buyer Agent representation. Why...? You may ask -
Here are some points to ponder
- When you visit a builders model home and you meet the agent representing the builder/Seller who is very knowledgeable about her product and its amenities - don't be mislead, she needs to act fairly, but her priorities are to sell the builders product and to look after the builder/seller, he is her client
- If you have shared personal or financial information with the Sellers Agent, that information can be fed back to the Seller and sometimes that can work against you
- The Seller's Agent is legally bound to the Seller and must secure the builder the best deal and all negotiations will be to the benefit of the Seller. The Seller is her client and the Buyer is a customer.
- An experienced Buyer's Agent will work with you from start to close of a new home build
- The builder's contract is often lengthy and technical - The Buyer's Agent will look after the best interests of a buyer and make sure the contract is not just Seller/Builder biased
- The Buyer's Agent can often negotiate items into the contract for you that the Sellers' Agent does not tell you about or assist you with
- The Buyer's Agent will guide you through the construction terms, the construction milestones, assist with your suggestions and possible changes, talk about/recommend home inspections, finances and mortgages and of course keep you abreast of the current market trends in the area
- The Buyer's Agent will be there for you long after the construction is complete. They are your voice in the transaction, not just while it's in the process, but for a long time after
- The Buyer's Agent comes at no cost to the Buyer. The fees that the Selling agents receives is shared with the Buyer agent - it is a myth to think that if you deal directly with the builder that you will get a discount because you are saving the builder on agents commission. The Selling agent would more than likely earn both sets of fees. You may as well be represented by your own Buyers Agent who will look after your best interests at all times at no cost to you.
- The builder will rarely negotiate the price on a new build as he will be competing price with his own products and setting a precedent for his future homes. Sometimes the Buyer's Agent may be able to negotiate some items into the contract for you, so it would not be reducing the purchase price, but would be adding some value. The Buyer's Agent has a certain amount of latitude here.
- Always have a home inspection done on a new home build before you close. The builder tries his best to ensure the home is perfect in every way, but human error happens and the home inspector looks after your best interests - not the Sellers and can save you thousand of dollars way into the future.
- Your Buyer's Agent is your voice in the transaction. They are not scared to stand up for you and allow you to be heard. Appoint a Buyer's Agent - you won't regret it. Their service comes free of charge to you the buyer and as a free service, you will get peace of mind, the best deal and someone working for you.