Thinking about a New Build? 3 Reasons Why You Need an Agent
When buying a new build, you may not think about using a Real Estate Agent, I mean why would you need one when there is a whole sales office full of people right there? Here’s a list of our top 3 reasons as well as a few new build myths on why we think it’s always smart to have an agent in your corner.
Builders’ model homes and sales offices are staffed by sales people (not licensed agents) who work for the builder. Although very nice people, they know who signs their paychecks and it’s not you. Wouldn’t you want someone there who knows you and is there to represent your interests and not the builders? Cue your friendly Live.Laugh.Denver. Real Estate Agent.
The Builder’s Contract
Long and wordy and not exactly thrilling to read. The contract is meant to protect the builder, not the buyer. Although we can’t change the contract, we’ll help you read through it, understand it, and point out things to ask the builder about.
For many buyers, this is your first time through the new build process, but we’ve been through it all before! We know what’s normal and what’s not, we’ve worked with different builders throughout Colorado so we know their reputations, and we are happy to share all this information with you, you just have to ask! We are here to work for you. As an added bonus, we are still around after the transaction! Want to change something in your brand new home that the builder wouldn’t do? We can connect you with contractors who will!
** Keep in mind that most builders will require that the real estate agent accompany and register the buyer on their first visit to the builder’s model home or community – if you stop by without an agent you could lose the opportunity for representation. We are always happy to set up new build tours so you can see different communities**
Myth #1: “I will pay less/ get a deal if I go unrepresented”
Builders do not reduce their prices (they need the comp sales to keep values up). If you go unrepresented, the money budgeted to pay your buyer’s agent to help guide and protect you goes right back to the builder increasing their profit. Going unrepresented is icing on the Builder’s profit cake!
Myth #2: “Homes are priced as advertised!”
Unfortunately this is not the case. The prices advertised are base prices, and will go up from there – significantly. Each builder is different but we can help you navigate the variables that will increase your price.
Myth #3: “I am going to build, so I can have the home just how I want!”
Majority of builders are building spec homes – buyers can change finishes, but are not able to customize. Some builders offer semi custom homes, with customizing options, but for the most part new builds are paper dolls, per se, and the buyer is picking out the outfit.
Myth #4: “I can take my time selling my current home, as I wait for my new home to be built!”
Most builders require you list your contingent home within a certain time frame of going under contract. It is best to be able to sign the builder contract without a contingency – we have ideas on how you can do that!