Let a Real Estate Agent Assist in Purchasing a Home from a Contractor
With a limited inventory of homes, builders are building new homes again. For many home buyers, the opportunity to buy a new house is a dream come true. If buying a home is a complicated process, then buying a new home directly from a builder is even more complicated. If buying a home is your future, you need the assistance of a Real Estate Agent. Consider these benefits when you purchase a new home:
It Simplifies the Process
- Buying a new home often requires a construction loan, which is different from a normal mortgage. The builder may offer their own financing, but the choice is yours; shop around to find terms and rates that match your need. A realtor will be familiar with local lenders, rates, and lending laws. Who better to offer advice on choosing a lender?
- With a construction loan, you will need to make incremental payments to the builder. What happens when the builder falls behind schedule? A realtor familiar with your builder can help navigate communications and get timeline updates.
- A real estate agent experienced in new construction transactions, familiar with the market, and the builder, will be able to recognize the best deals available.
The Realtor’s Network
- An experienced realtor has a vast network of vendors, contractors, bankers, and contractors. This is a definite advantage for someone, whether moving across town or across the country.
- A realtor will listen to and understand the needs of the buyer. The real estate agent’s goal is for you to live in the best home possible at the best possible price. The realtor represents YOU!
- While you may have a clear vision of the layout of your home, the appliance style, and wall colors, you might not be as clear about how to make that happen. Do you know enough to avoid pitfalls or mistakes? Do you know enough about a construction loan contract to sign with confidence? A realtor can help you through the process.
Negotiation Help
- If you do not negotiate for a living, purchasing a new home from a builder is fraught with difficulty. Most builders refuse to budge with unprepared buyers. Builders count on convincing buyers into paying the full price. Since this is your money, it is important for you to have the freedom to say “no.” This is hard to do alone.
- An experienced realtor is a skilled negotiator, communicating with buyers, sellers, and builders. Realtors can negotiate for upgrades or reduce costs hidden from most buyers.
- A little-known tradition is that builders typically roll an agent’s commission into the sale price of the home. The builder is paying for the buyer to take advantage of the expertise of a real estate agent. Why would you not use a realtor?
- Realtors understand local peculiarities that can help you during the negotiation stage. It is in your best interest to let them utilize this knowledge.
Contract Assistance
- Real estate agents are familiar with contract verbiage. As your representative, they know the buyer’s rights and the builder’s responsibilities. Real estate agents are valuable assistants during closing.
- It is your responsibility to go over your contract thoroughly to make sure every detail is covered. Along with normal closing documents, your construction loan is being transferred to a traditional mortgage.
- You may consider a real estate attorney to identify any problem areas in the fine print of the contract. A realtor can recommend a preferred attorney at a reasonable fee. Between the two representatives, you will be well cared for.
Inspection Expertise
- Since this is new construction, you might think an inspection might not be necessary. The builder knows the home well and may not plan to schedule an inspection. It is in your best interest to schedule a thorough inspection. (A tour by a builder representative is not an inspection.)
- Your realtor can recommend a well-trusted inspector; the inspector will walk through the home with a keen eye. He will make a punch list of needed repairs or prepare a glowing report of your brand-new home. Either result works in your favor.
- The real estate agent should be present for the inspection for your protection.
Looking for help from a Real Estate Agent to buy a house?
With over 5 decades of experience in the Houston Housing Market, The Matthews Team can help you choose a Houston Real Estate Agent for your next home or property purchase. If you have any questions, give us a call at 281-440-7900 or send us an email. We’re happy to help!
