Well, not really. Bet you’re surprised at that answer! Sure you can go to any builder, pick out your favorite design, arrange to finance the home through the builder, sign the builder’s contract, pick out your options, and be on your way to living in a brand new home. And you can do all this by representing yourself.
But SHOULD you use a Realtor®? Most definitely!
- First of all, it costs you NOTHING to have a representative on your side. Most builders allow for the cost of a buyer’s agent in their overall marketing costs, and as such, don’t discount the home’s price when the buyer doesn’t use an agent. Some builders simply pay their sales rep more of a bonus if the buyer doesn’t use an agent, so it’s to the rep’s benefit to have you be unrepresented.
- The sales rep sitting in the builder’s model is an employee of the builder. They don’t have to be a Realtor®. They will act in the best interest of the builder (their employer), not the buyer.
- Using a Realtor® will have a professional on YOUR side.
- Your real estate agent will know whether you might be overpaying for the home based on what similar homes are selling for. The agent often knows what the growth plans are for an area, and may be able to alert you to plans for nearby commercial/retail development being planned.
- The agent can advise you on which options are most important for resale value. Should you spend your money on a full basement or that pretty granite countertop?
- Your agent can advise you on whether the builder financing is really a good deal or whether you should seek an alternate financing source. Builder financing margins are built into the purchase price so the price you pay for the home is more than the home is worth.
- Your agent can monitor Contract due dates so you don’t have to. Builders tend to be lax on meeting these dates, and it is helpful to have an agent who will be staying on top of this for you.
- Your agent will encourage you to have a home inspection prior to closing. Just because the home is new doesn’t mean it won’t have problems. Often new-builds have more issues than a resale home. Your agent will help you through these negotiations.
- Since your agent may ultimately be helping you SELL your home when that time comes, they’ll be viewing your choices from that perspective which is to your long-term benefit.
Brand new homes are pretty and you can select the carpet, flooring, paint, etc. to suit YOU. But if you’re like most buyers, you’ll be viewing the choices and the process through rose-colored glasses and you’re likely to overlook important issues. Your Realtor® will be an objective third party to keep you grounded, yet be there to share in your excitement of owning a brand new home!
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