In today’s Phoenix real estate market there seems to be a
few driving factors to why home buyers seek new construction opposed to an existing home:
1. Limited selection
of existing homes to choose from.
2.
Outdated features in existing homes and lack of
energy efficient features.
3.
Increased selection of new homes within the city
without a commute.
4.
Smoother offer/purchase process without bidding
competition.
As new construction continues to make a comeback from the
downturn of the market I have also noticed a vast majority of home buyers
taking on the huge venture of purchasing a new home alone without representation
of a Realtor. I have heard from buyers a
few reasons why. Let explore some of
those reasons and some of the inherent benefits of having representation of a Realtor
when purchasing a new home.
“I will get a better deal by not having an agent”.
Many buyers believe that the builder will offer a “better
deal” or price by not having an agent by saving the commission paid to their
Realtor for representation. This simply is not true. I can share with you from my experience as a
new homes sales agent and my good standing relationship with many top builders
here in the valley the price of a home does not change nor does the builder
offer any additional price incentives by purchasing without a Realtor. In fact builders seek out Realtors
partnership in helping sell their homes.
Realtors bring educated, qualified buyers with the shared goal of
servicing the buyer’s needs.
“I don’t need a Realtor; the sales person does all the work”.
This statement is partially true. The onsite sales agent does write the contract
and facilitates all paper work for the purchase. The onsite sale agent also has
full knowledge of the building process and features of the home. Home buyers need to be clear on who represents
who. The onsite sales agent represents the builder and the builder’s best
interest. It’s actually written in all new home purchase agreements. Yes, it is the builders’ interest to sell you
the home however the builder is not there to protect your interest or to ensure
you have full knowledge of how the terms impact you or your personal goals in
the investment. Having a Realtor present
while reviewing and signing the builders purchase contract ensures you aware of
the terms from a buyers perspective not just the builders . A Realtor is there to be objective in keeping
your family and investment goals a priority, both short and long term.
Now let’s look at some of the benefits to a buyer in using a
Realtor. These benefits are shared with
you base on myself and my colleagues 1st hand experience in
partnering with a buyer who choose otherwise.
What is included…what is not?
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When you walk through a model home it is showcased
with beautiful furniture, options and luminous lighting. Models are designed to speak to your emotional
side of purchasing a new home. Smells
new and clean. You can visualize living
in the home and sharing happy memories with friends and family. The colors and
design lead us down a warm fuzzy path with feelings of joy. It’s important to understand in order to
mimic the models you will need to add additional cost to the base price of the
home. This can be done within your
budget partnering with a Realtor who is knowledgeable of interior cost, current
trends, and enhancements that will pay off if ever to sell in the future. The onsite agent’s objective is not to overwhelm
you with the details, keeping your emotions high by what you see. Many buyers have complete sticker shock when
they finally get to the “what comes with the house” stage and often
miscalculate their budget. This can lead to a huge disappointment and the buyer
not getting what they expected. I make
sure prior to purchasing the new home the buyer knows exactly what comes with
the base price of the home and an estimated cost of any upgrades the buyer may potentially
want to purchase. I attend the design
center appointments when designing the home to ensure sound purchases are being
made, tips on how to save money installing some features after the home is
built, and keeping the buyer current with what is popular and sustaining. As a buyer you don’t want to make a choice
that will later hinder you selling your home or cost you more in the long run.
Your Agent is like an Insurance Policy
-
Communication
with your Realtor is key. We are here to
keep buyers educated, informed and remove a bulk of the stress in one of the
most important decisions of a person’s life.
Example: Young buyers purchase a new home. Halfway through the building process they decide to ignore the agents attempt to discuss updates on financing and
preparation to close. In the interim the buyer decided to purchase a
new car because they were under the impression their credit would not be pulled
again. WRONG! Not only did the buyer almost lose their
home, it took another month and a half to save the purchase costing the buyer a
much higher interest rate. Thankfully
the agents rapport with the builder and additional tools helped assist in
saving the buyers home.
-
Home Builders seek to keep a longstanding
relationship with agents and their brokerages.
When disagreements and problems develop the builder is more apt to come
to a mutual agreement not only to keep the home buyer happy but to preserve the
Realtor /Builder relationship and avoid mediation or legal proceedings backed
by an attorney.
If you or a friend are considering purchasing a new home and
have not partnered with a Realtor, I suggest scheduling a meet and greet over
coffee to discuss your home buying goals and how a Realtor can assist. 480-233-3102
