Looking to buy a home? Are you looking for a new build or and existing home? Investopedia put together an article offering their two cents on the subject. But if you are leaning toward purchasing a new build there is a question you need to ask yourself: Do I need to hire a real estate agent to represent me when I buy a new home from a builder?
And the answer is, legally, no. But if you don’t, you might be missing out on some tangible benefits that impact your wallet and how much you get for your money.
There are many reasons why an agent is a sound investment during the purchase process with a builder. While some of them can be quite complex and go beyond the scope of this blog post, here are a few highlights:
Market Value Compared to Purchase Price: How much money are you going to be able to come out of pocket for your down payment? If you don’t want a nasty surprise when it comes to disparities between your agreed upon purchase price and the actual market value of the home, you’ll want an agent with access to information which will help you accurately assess the true value of that brand-new home.
Negotiation Power: Real estate agents are professional negotiators, and often an agent can get more from a builder than you would on your own. While some of this might be related to purchase price, other perks may include property or home upgrades.
Financing: It’s probably no surprise that your builder will have preferred financing partners to work with. Many of those “partners” pay good money for the opportunity to handle your loan. But is it the best loan at the best rate? An agent can be both a sounding board for financing terms and a source for trusted alternatives.
Contract Expertise: While your real estate agent isn’t an attorney, they know a great deal about the ins-and-outs of property contracts. This includes builder’s contracts, which may have provisions that put you in dicey territory should something unforeseen happen. Protect yourself with an agent.
These four reasons are a good place to start, but there are plenty more advantages to having a Real Estate agent on your side during the buying process. The bottom line is: The builder will have their own system in place to maximize their profit and minimize their costs. Shouldn’t you?
There are numerous new home developments in the Prescott area. Contact me if you have questions about any of these homes, or questions about the buying process.