When Buying a New Home, Hiring a Real Estate Agent is Key!

When Building a New Home, Hiring a Real Estate Agent is Key!

Do you need a real estate agent if you’ll be building your new home? The answer is “yes!” And, here’s why:

• Buying new construction, like any home purchase, is a complex and large transactionwith many financial implications. A Real Estate Agent will be there to represent your interests throughout the process.
• A Real Estate Agent is contractually obligated to protect you and will be looking out for your best financial interests.
• Whether it’s terms, financing options, or upgrades, a Real Estate Agent will work on your behalf to negotiate what is best for you.
• A Real Estate Agent will manage the closing process—financing work with title companies, inspections, and more.

Tips for Buying New Construction

Buying a new construction can appear the same as purchasing a resale home, but there are some primary differences. These tips will help get you off on the right foot:

• Use your own broker/Real Estate Agent - Get your broker/real estate agent involved early in the process. If you’re seeking an agent, the REcolorado Find A Realtor Agent/Office tool is a great place to start.
• Price - Negotiating price may not be an option. Builders typically have an established set of prices based on the market. If they lower the price of one home in a new community, it drops the comparable value of the other houses in the community. You may have more luck if you ask for builder concessions in the form of additional upgrades.
• Builder Addendum - Expect to get a lengthy builder addendum or a Builder's contract in addition to the standard purchase forms used by a Real Estate Agent/broker. Read all contracts carefully and consult with a real estate attorney if you have questions.
• Floor Plans - The floor plan you see and the floor plan you get could be different. For example, room sizes are typically close estimates, with measurements rounded. Additionally, floor plans can rarely be modified. Unlike building a custom home, most community sites are based on a preapproved set of plans.
• Timing and Changes - Work with your builder closely to undersand how long the construction process will take. Add an extra month to the anticipated completion date. Also, be sure to anticipate changes. A supplier may run out of a particular procut, a price may change, and the weather may have impacts.