I was recently certified as a New Home Specialist and Residential Construction Consultant able to guide buyers in the building of a new home. Let me address some of the myths vs. facts in constructing a new home.
Myth # 1: I don’t need a Realtor when I’m building new.
Fact # 1: When building new, a Realtor helps in many ways, including:
* Selecting the best lot: Do you want a lot on a cul-de-sac, with woods behind, on a pond, or away from the main entrance to the community? These are things your Realtor can help you identify so you’ll choose a great lot – always keeping your budget in mind.
* Negotiating extras for you: Want upgraded counters or appliances, a different paint color or style of garage door in that new home? Your Realtor can help secure extra perks, amenities and upgrades, especially if the housing development is in its beginning stages.
* Advising you on choices that will hold their value over time, especially at resale time.
Myth # 2: The “preferred lender” the builder recommends is the one I should use.
Fact # 2: Your Realtor will encourage you to shop around for mortgages so you choose one that works best for your situation.
Myth # 3: I don’t need a home inspection if I’m building new.
Fact # 3: A home inspection is just as important on a new build as on a pre-owned home. The number and severity of new-home defects can often rival those found in resale homes.
Myth # 4: If I use a Realtor, I will pay more for my new-construction home.
Fact # 4: Actually, this is not correct. The services of a Realtor are free to you as a buyer on a new build or on the purchase of a resale home. On a new build, your Realtor’s commission is paid from the builder’s marketing budget. On the purchase of a resale home, the Realtor’s commission is paid by the seller.
Having said all this, I want to stress that the builder’s agent is also a valuable source for learning about your new home. These individuals are knowledgeable about the construction and available amenities, as well as the housing development itself and community “vibe.”
However, keep in mind that the builder’s agent works for the builder, while your Realtor works for you. I believe to have true peace of mind throughout the new-build experience, having a Realtor of your own is the smart thing to do.