Jul 31, 2023
When it comes to house hunting, the allure of new construction is undeniable. The idea of being the first to live in a pristine home with brand-new appliances and custom finishes tailored to your taste is truly appealing. However, before you get too excited, it’s essential to understand the importance of having your own real estate agent throughout the new construction buying process. In this blog, we will explore why you should always have a realtor by your side when purchasing a newly built home and the advantages it brings to the table.
When you decide to buy a new construction home, it’s essential to be aware of the key players involved. In this scenario, the builder is considered the seller, and the agent representing the builder is known as the builder’s agent. The builder’s agent’s primary goal is to secure the highest possible price for the homes the builder is selling. As such, they may not be as eager to negotiate down in favor of the buyer’s interests.
It’s crucial to enlist the services of your own real estate agent from the very beginning, even if it appears convenient to work with the builder’s on-site agent. Here’s why:
Despite the importance of having your realtor, the builder’s agent can still be a valuable resource for gathering information about your potential new home. Nevertheless, having a real estate agent in your corner provides an added layer of support and guidance throughout the process.
In new construction show homes, salespeople represent the builder’s interests. Unlike licensed realtors, these salespeople may not adhere to the same codes and ethics. When purchasing a new home directly from the builder, it’s always best to bring your realtor along to ensure your interests are protected.
Having a written agreement with your realtor is essential to ensure a smooth and transparent process. This agreement outlines the commissions and protects your rights as a buyer. While most builders pay the commission to your realtor, it’s crucial to discuss these details upfront to avoid any surprises later.
Beware of salespeople offering discounts in exchange for waiving your realtor representation. Often, these apparent discounts are just sales tactics, and you may not end up saving anything.
Although builders may suggest using their lawyer at a reduced fee, it’s in your best interest to have your own lawyer working on your behalf. Protect your investment by having a legal professional dedicated to your needs.
When it comes to purchasing a brand-new home, there should be no exceptions when it comes to getting a home inspection. Despite the perception that new constructions are flawless, a thorough home inspection is an absolute necessity. Uncovering potential issues early on can prevent costly problems from arising down the line and give you peace of mind in your investment. Even in new constructions, various factors could lead to defects or overlooked issues. Having a qualified home inspector thoroughly assess the property’s condition can reveal hidden problems related to construction, electrical systems, plumbing, and more. This proactive approach ensures that any potential concerns are addressed and resolved before they evolve into significant expenses.
On the other hand, if you are considering selling your current home with a builder’s services, exercising caution is crucial. Listing your home through a builder’s contracted realtor may inadvertently disclose your motivation to sell, potentially putting you in a weaker position during negotiations. To safeguard your interests and optimize your selling process, consider seeking independent representation for the sale of your current property. Having your realtor working exclusively for you ensures that your best interests are protected, allowing you to negotiate from a position of strength.
Buying a new construction home is an exciting prospect, but having your own real estate agent throughout the process is a wise decision. From negotiating upgrades to overseeing home inspections, a realtor ensures that your interests are well-represented. Don’t underestimate the value of professional guidance when making one of the most significant investments in your life. Always have a realtor by your side when purchasing a new construction home for a seamless and satisfactory experience.
Hi! I’m Erin Crocker. I’m a real estate lawyer with over 10 years of experience in Alberta and British Columbia real estate law. I love technology and efficiency. I’m on a mission to create a modern, digital closing experience for buyers and sellers through technology, transparency and sharing knowledge.
