Are you considering buying a new construction home?
In many cases for many buyers, new construction offers the BEST deal on the market, especially in this hot real estate market. As you have probably seen, new communities are popping up all over Virginia and builders are officially back in business.
At the end of September 2013, builder confidence was the highest it has been in eight years.
So, how do we navigate the world of new construction homes?
First, let me address some of the most common myths about buying a new home.
MYTH: Do I really need a REALTOR® representing me? Doesn’t each builder have a sales person in their model homes?
TRUTH: Contrary to what you might believe, the super sweet and friendly sales person at the model home is NOT there to help you, the buyer. While recently reviewing a builder contract for a client’s new construction home, I came across the following statement…hidden nicely among the other 78 pages in this contract.
THE SALES PERSON (SALES ASSOCIATE) LICENSED IN THE STATE OF FLORIDA SIGNING THIS PURCHASE AGREEMENT BELOW REPRESENTS SELLER EXCLUSIVELY IN CONNECTION TO THIS TRANSACTION AND DOES NOT REPRESENT OR PURPORT TO REPRESENT BUYER.
So, what does this mean for you? It means that the very hospitable sales person is EXCLUSIVELY employed by the builder/seller. They may give you a lovely tour of the model home and offer you a nice, cold beverage, but they are not in any way there to represent you, the buyer.
Would you approach the seller of a resale home alone without a REALTOR®? If no, why would you work directly with the new home seller without bringing your own representation? Would you trust the hospitable sales person to provide you with a fair market sales price without any outside verification?
Would you sign a 78 page contract for one of the largest purchases of your life, written completely by the seller and their legal team, with terms and clauses that you don’t understand?
Still, builders across the board say that approximately 50% of buyers come into the purchase transaction without a REALTOR® by their side. WHY? Let’s explore some other MYTHS…
MYTH: I don’t want to pay the extra money for REALTOR® services and assistance.
TRUTH: The commission for services by any REALTOR® is paid COMPLETELY by the builder/seller. You will never be charged a fee for bringing your own representation. WOW! Does this sound too good to be true?
MYTH: I won’t get the best deal if my builder needs to pay a REALTOR®.
TRUTH: As I mentioned above, the commission for service by any REALTOR® is paid COMPLETELY by the builder/seller. These charges will NOT show up on your purchase transaction or even on your final purchase paperwork. The price of a new construction home WILL NOT change whether or not you have enlisted the services of a REALTOR® to represent you. There have been a few times when a client will stop by a builder model home without me, just to check pricing, and when we all go together the next time the pricing DOES NOT change just because I am there.
In some negotiations, I have actually been able to significantly reduce the sales price or increase incentives for my clients on new home purchases. In these cases, the deal overall becomes much better for my clients! Saving money or more upgrades = happy clients!
MYTH: The sales person can do everything that a REALTOR® would do for me.
TRUTH: As I explained above, the sales person is employed by the builder to represent only the builder in the transaction. The sales person will not be looking out or protecting your best interests in the process. You have the right and responsibility to bring your own REALTOR® to represent and protect you in the process of buying a new home…at no cost to you!
So, with all of these MYTHS dispelled……what can CANDACE NOEL do for me as a REALTOR®?
- EXCLUSIVELY REPRESENT YOU, THE BUYER! I will be by your side to represent your best interest in the purchase transaction.
- I will provide you with research on current real estate market conditions, builder pricing and comparable housing options to ensure that you are receiving a competitive deal from the builder.
- I will personally read through the entire purchase contract for you, which can typically be around 60-70 pages plus any special addendums. I will point out any important notes and answer any questions.
- I will educate you and walk you through the entire process, including signing the contract, providing down payments, selecting options and upgrades, paperwork, financing and building. Throughout the process, I will also stay in constant contact with the builder sales person. For most of my clients, this takes a lot of stress out of the equation.
- Besides exclusively representing the builder, the nice sales person you might meet at David Weekley can only sell you a David Weekley home. The nice sales person you might meet at Taylor Morrison can only sell you a Taylor Morrison home. I have relationships with all builders in Central Florida and can represent you in a transaction with any of them. Therefore, you are automatically granted the opportunity to shop around for the home that best meets your needs and budget with me by your side!
- If you have not completely ruled out the idea of a resale home, we can be looking for resale options at the same time we are exploring builders and new homes. In the event you decide that a new home is not for you, I can immediately switch gears to sell you a resale home and represent you in that transaction…again, at no cost to you.
- As much as the builder and sales person would like for you to believe it, you are NOT obligated to finance your loan through their lender. In fact, I would highly encourage you to shop around to ensure you are getting the very best deal. I have relationships with other lenders that specialize in new home loans and the knowledge to make sure you can secure a loan for the home and receive all offered benefits. For example, did you know that if you are denied for a loan by the builder’s lender and can find another lender to finance the loan, you can still receive the builder’s offered credit towards closing costs? Did you know that if you find a better deal on financing while shopping around, the builder’s lender will most likely match the deal? Trust me…it is worth shopping around for financing.
Contact me today by Calling 571.402.5155