Why You Need an Agent to Buy New Construction

Are you thinking of buying new construction? If so, you may be wondering if you need a real estate agent to help you. The answer is yes – here's why. 

When buying a new construction home, there are a few things that are unique to the process compared to buying an existing home. For example, the developer will likely have their own sales team who handle all the transactions. 

So unless you're working with a buyer's agent on your side, you may not get the same level of service or representation as someone who is paying attention to the builder’s interests. 

Below, we highlight the importance of working with a real estate agent if you are planning to purchase a new build.

What is new construction and why might you want to buy it?

A new construction home is a property that has been built from scratch by a builder, as opposed to an existing home being purchased from a previous owner on the resale market. 

Because most new construction homes are built to order, buyers often have more flexibility to customize their home to their specific needs and preferences. They enable buyers to have brand new and turn-key at the same time.

In addition, new construction homes are typically covered by a warranty from the builder, making them a more attractive option for buyers who want peace of mind. However, new construction homes can also be more expensive than resale homes, and the build process can often take longer than buying an existing home. 

As a result, it's important for potential buyers to weigh all of their options before making a decision.

Benefits of working with a real estate agent for new builds

One of the many benefits of working with a real estate agent when looking for a new build is that they can advocate for your interests. 

They will be able to negotiate on your behalf with the builder and make sure that you are getting the best deal possible. In addition, they can help you research different builders to find one that you can trust. 

Experienced buyer’s agents can also advise you on what features to look for in a new home and help you navigate the often confusing world of homebuilding. As a result, working with a real estate agent can be an invaluable asset when evaluating your needs and resale potential in the future.

How to find an agent with new construction experience 

If you're in the market for a new construction home, it's important to find an experienced real estate agent who specializes in new construction and has relationships with the builders. The process of buying a new home is different from purchasing an existing property, and you'll need an agent who is familiar with the nuances of new construction contracts. 

The best way to find an experienced agent is to interview several different candidates and ask about their experience with new construction. You can also ask friends and family for referrals.

Once you've found a few qualified candidates, be sure to ask about their value proposition - what makes them the best choice to represent you in your new home purchase. With the right agent by your side, you can be confident that you can have a successful real estate transaction.

Who represents the home builder?

The builder's agent, also known as a sales representative, is the person who represents the builder and works in-house at the builder's office. The builder's agent is usually the first point of contact when visiting model homes or a sales gallery.

However, some builders work with external agencies, and in this case, the sales representative from the agency will be the point of contact for you and your agent. Either way, the builder's agent is there to answer any questions you have about the builder and the homes they offer. 

Similar to the resale market, it is important to remember that the builder’s agent, like a listing agent, represents the interests of the builder or home building company - not the buyer. As such, it is always a prudent idea for buyers to have their own representation when interacting with a builder’s agent.

How much does a buyer’s agent cost?

One of the most common questions asked by people looking to buy a home is - how much does a buyer’s agent cost? The answer to this question is not as simple as it may seem. 

In most cases, the builder pays the buyer’s agent a commission. This commission varies from development to development, and is typically set by the builder in advance as a set percentage of the sale price. 

How can you save money when buying new construction

When it comes to new construction, there are a few ways that you can save money. 

The easiest way is to work with a buyer's agent who can offer you a commission rebate. This means that your agent will provide a portion of their commission to you at closing. 

For example, Prevu Real Estate offers the largest commission rebate on new construction homes in the markets they serve - totaling up to 1% of the buyer’s purchase price. 

Another way to save is to negotiate for free upgrades. Remember that when you're buying new construction, you're also paying for all of the extras that come with the home. While you may be able to save yourself some money by skipping certain features, asking the builder to toss in certain upgrade packages for free if you don’t haggle on the base price may get you more than you hoped for.

Tips for a smooth new construction purchase

If you're thinking of purchasing a new home, there are a few things you can do to help ensure a smooth process. 

First, be sure to thoroughly research the builder. Ask around for recommendations, read online reviews, and visit the builder's website to get an idea of their reputation.

Once you've selected a builder you're comfortable with, it's important to get a good understanding of their floor plans and pricing. Be sure to ask about any extras or upgrades that may be available, as these can add significant cost to your overall purchase price. 

It's also a good idea to tour some of the builder's completed homes before making your final decision. This will give you a better sense of the quality of their workmanship and materials. 

By following these tips, you can help ensure a smooth and successful new construction purchase.

Interested in buying a new home? Browse listings in your favorite neighborhood and see how much you can save with Prevu’s Smart Buyer Rebate.