Why Should You Have Representation When Buying A Brand New Home?
From time to time, we hear a buyer utter the question:
"Why do I need my own agent? Why shouldn't I just use the agent that is selling in the community?"
We asked one of our team members, to review this question and offer her response:
When I hear a buyer ask, "Why do I need an agent?" I think back to when my parents bought their 2nd house. They dove right in and made a lot of bad decisions because they didn't think they needed help, and thought they'd save some money.
In the 80's, you didn't have the option of Buyer Representation. They muddled through the whole process, negotiating on their own and taking the advice of anyone who offered. After the closing, and after having quite a lot of trouble with getting the house to appraise, my parents did some follow-up work and found that the bank appraiser had fudged to match house price to contract price. They were livid!
But sueing wouldn't have accomplished much even if they'd won, and would have cost them a whole lot of money upfront. Fortunately they stayed in the house long enough that they came out okay but that really stuck with me. So when I decided to become a Realtor, one of the main reasons was to act as a full-time, very serious advocate for my buyers, and to make sure this never happened to them.
On-site agents represent the builder and are obligated to. So, even if they wanted to, they are not there to protect your interests. It's just nice to have someone on your side who's available when and where you need them and can help you with decisions like what colors and materials resell well, what kind of Lender costs are fair and reasonable and which aren't, which building lot is a better investment over another, or any number of a multitude of related issues like this.
Every decision counts in Real Estate and nothing is minor! It's all your money and you, and I, are the only ones who are really going to care the most about making sure you make the right choices and that the Builder lives up to what he/she has promised!
All agents owe both parties to the transaction reasonable skill, care and diligence, but you need more that that. Once you have chosen an agent to represent you exclusively, you will get a committment from someone working to help you find the perfect home, and make sure your interests are served in all parts of the transaction. You'll get more than you even realize you need and learn more than you realized you needed to know. For example, if you aren't sure what the answers are to these questions, it should probably give you pause to be concerned:
Do I negotiate when offering on new construction? The answer might surprise you!
Who pays commission?
What happens after I make an offer to purchase a home?
Do I have to get a pest inspection?
What is the Customary Deposit?
Do I need to have a home inspection? If so who pays for it and when do we do it?
Will I need legal counsel?
What kind of Title should I ask for?
Why do I need a survey and who pays for that?
When do we get the appraisal and does the seller provide it?
What is an origination fee, or points?
How will my property taxes be determined and how are they paid?
Give us a call today if we can further assist you in your real estate transaction. It is one of the biggest investments you will ever make and having a trained and experienced professional on your side will make all the difference!
The Homes Around Nashville Team
Bill and Cynthia Berkley
Jennifer Devine
Realty Executives Fine Homes
615-847-1169
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