Is it foolish to consider a new home purchase without your own buyer’s agent?
Friday, January 3rd, 2014
Issue 01, Volume 18.
Who is going to help?
Many new construction home buyers believe that the only choice they have is to work directly with the builder’s on-site agent. They are under the misconception that there is nothing to negotiate and that the on-site agent will give them a better deal than if they bring their own agent into the transaction.
Unfortunately, this is so far from the truth and every day new home buyers are putting more money into their homes than necessary. Some would even say it is foolish for a new home buyer to make an offer on a new-construction home without the free assistance of an experienced real estate agent that specializes in working with buyers.
First, it should be pointed out that buying a new home is very similar to buying a home from existing inventory. In new home sales, the builder/developer is the client (seller) and they have their in-house sales staff to sell their houses (listing agent). The builder and on-site agent have a contract (listing agreement) that specifies the duties and responsibilities of each part to include the commission that will be paid.
It doesn’t matter to the builder who earns the buyers side, either the on-site agent or a buyer’s agent representing the consumer – the same amount of money will be paid by the builder regardless of who earns the commission.
The term "free" should be repeated because the buyer does not pay a dime for an experienced real estate agent to represent them. There are many advantages to utilizing the services of an experienced buyer’s agent.
It is a misconception that using a buyer’s agent will add to the cost of the home. Remember, the on-site agent represents the builder/developer and is legally responsible to the builder and not the home buyer. The on-site agent’s responsibility is to secure the best possible deal for the builder and cannot negotiate against their client. Once the home is under contract, the on-site agent will continue to represent the interests of the builder. Remember, the builder is their client, the buyer is their customer.
On-site agents welcome experienced buyer agents
Many on-site new home agents will actually welcome the assistance and expertise of an experienced buyer real estate agent. Consider these reasons:
* On-site agents want to sell homes, not work with the same buyer for months after the contract is signed,
* On-site agents would rather work with an experienced real estate agent as opposed to working directly with the customer,
* A good buyer’s agent will be able to educate the buyer along the process and not bog the on-site agent down with questions and potential issues.
Advantages of a buyer’s agent in a new home
While many of these advantages may seem obvious, they should certainly be considered by the customer looking to buy a new home in the Temecula-Murrieta Valley.
* On-site agents depend on the local real estate agents to help sell their inventory – there is nothing better, in any industry, than word-of-mouth marketing,
* If something goes wrong, it’s common to talk about it – if it’s the customer complaining who really is going to hear about it? If it’s a respected local real estate agent they have the entire marketplace to voice their concerns to,
* Having an experienced buyer’s real estate agent can get things done that normally wouldn’t happen. While many builders are anything but flexible, a good agent experienced on how to present offers and negotiations can be the advantage the customer is looking for,
* On-site agents may be familiar with the purchase contract but may not be able to explain it in terms for the buyer to fully comprehend – potentially brushing past points that may become sticking points. Having your own buyer’s agent will allow you the luxury of fully reviewing and understanding every aspect of every document at your pace,
* Your buyer’s agent should be your agent for life – long after the transaction closes, your agent should be there for you. It is not uncommon for issues to arise in the first year (under warranty, of course) and your real estate agent should help you resolve these issues while an on-site agent may be at a new job site in another town by this time and have forgotten all about you after the deal is done,
* An experienced buyer’s agent will be able to guide you with suggestions and advice along the way on important topics that include options, inspections, mortgages, construction issues and anything else that is important to you.
If you owe it to yourself to buy that brand new home that no one has ever lived in before and you are looking forward to all the perks and satisfaction of designing it and having it built your way, then you owe it to yourself to hire your own personal buyer’s agent for the outrageous price of free! Call me today and get the information you need to make the right decision. The info is free, call now! (951) 296-8887.
Questions regarding available inventory and/or other real estate matters please contact me at Mike@GoTakeAction.com. Mike Mason, Broker/Owner of MASON Real Estate Cal. BRE: 01483044, Board of Director of your Southwest Riverside County Association of Realtors® (SRCAR), Traveling State Director, California Association of Realtors® (C.A.R.).
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