Buyer's Representation for New Construction

For many homeowners, building their own, brand new home is the fulfillment of a dream. Building gives you the opportunity to put your unique stamp on a home and know that it is tailored to your tastes and lifestyle. It is a rewarding experience, but can be overwhelming to those who are new to the process.  We can help!

 Information to Know When Visiting Display Homes

So why don’t all new-home buyers use a buyer’s agent to help them navigate the purchase of a brand-new home? It requires planning ahead, and often time’s new-home purchases begin unplanned, when the buyers notice a “Grand Opening” for a new-home development and stop to take a look.

When asked to “register” by the model sales agent, they fill out a card with their name and contact information. Should the buyers then decide to have buyer’s representation, the builder will require that the buyer pay the agent’s fee, usually 2 to 3 percent of the base price.

• If at all possible, be sure to contract with a Buyer’s Agent before you start shopping. Often the policies at a community require that your agent be present at the first showing and then at every showing.

• It is important to contact your buyer’s agent before visiting the property because the builder is paying for the agent to bring the customer, not because you want representation.

• Sometimes if you have already been to a site and registered without an agent, the builder will go ahead and pay a commission to your buyer’s agent, even if they weren’t with you on the first visit, because they value the agent’s relationship and want future business.

• Tell the builder UP FRONT that you want to work with Dave Schott.
  

 Why Consult with Dave Schott Before Buying?

New-home buyers need to understand that the builder representative, or the Realtor who might be working in that model, always represents the builder. Their primary job is to represent the builder and protect the builder's interest. So you should have somebody protecting yours.

There is a listing contract in place that specifies the agent’s duties and the commission to be paid to a buyer’s agent, by the builder, out of the marketing budget. If you, as a new-home buyer, don't have a buyer's agent the builder simply keeps the money that is included for your buyer's agent's fee. It's just like having a Realtor on a resale house.

• The site agent is legally bound to represent the best interests of the builder, not the home buyer. This is consistent throughout the course of the build; the builder is their client, the buyer is their customer.

• The costs of the services that we provide are gladly paid for you by the builder of the home you purchase. They are "gladly" paid because we brought the builder a buyer for their home and helped keep the transaction smooth and stress-free; it's as simple as that.

Without real estate agents and their clients, builders cut a very important source of buyers to their communities. In fact most builders embrace the services of experienced buyer’s agents, and here are a few of the reasons:

• Site agents are there to sell homes, and often prefer not handle every interaction with the buyer for months after the contract.

• Buyer agents are often able to handle questions and potential issues long before the site agent is called.

• Site agents often find it much easier to deal with another agent as opposed to directly with a buyer.

It might not seem obvious, but there are many benefits to buyers using an agent to represent them when buying new construction:

• Real estate agents are professional negotiators – Real Estate agents know the art of negotiating the best deal. Even when a builder says, “we do not negotiate,” there is often room to wiggle. An experienced buyer’s agent knows how to present requests and negotiate. Many builders are inflexible, but a good agent can work with the site agent to get things done that might not normally happen.

• Site agents depend on real estate agents to help sell their homes - Nothing is better than word of mouth advertising for a builder. And when it’s a good experience, agents share their experience.

• Agents talk even more when there are problems - Who is an unrepresented buyer going to complain to? Who is an agent going to complain to? The entire office…

• Buyer’s agents will help you understand the contract – When it comes time to sign the contract, a buyer’s agent knows how to read and explain a new construction contract. Some contracts are over 20 pages long. It is important you have someone there (besides the builder’s site agent) to help you understand the contract and what you are signing.

• A buyer's agent can help you choose - The right subdivision and floor plan based on your needs, and can help you with lot selection- picking the right lot. There are some lots you absolutely do NOT want to have. There are some floor plans that may be very hard to resell and others that may work better for you.

• A buyer's agent will be there for all meetings - with the builder salesperson, superintendent, or otherwise. I also visit your home weekly, provide you a progress update, and take pictures of the home as it is being built. This gives you a pictorial record for future reference and also allows concerns to be more easily addressed.

• A buyer's agent will help you schedule - home inspections, done by an inspector of your choice. Did you know you should have your own independent inspection, even on a new build? That's right. And a buyer's agent will help you negotiate the problems that arise from the inspections.

• A buyer's agent can help you pick - options by suggesting things that you have not thought of since they have been through the process before. They can also tell you why you should/should not add/subtract certain options from a resale perspective. And they can usually tell you what options other buyers like and which may add value to the home.

• A buyer's agent also acts as a "go between" - between you and the sales rep or the superintendent. Sometimes you may not have time to deal with an issue or may not understand an issue that has arisen. A buyer's agent can take care of the problems for you that you are not able to address due to time or lack of understanding.

• Why limit yourself to new construction – Many communities that are selling new construction homes also have resale homes for sale as well. The salesperson working for the builder can only show you the new homes. In fact, some people prefer resale homes because they already have window treatments, established landscaping, and nearby construction activity has ended.

• The home you love might be in a different community – You may not know it, but the home of your dreams might be in a community you didn’t know existed. A knowledgeable buyer’s agent might help you realize that there is a different community that better suits your needs and lifestyle. Agents will help you explore your options before you make a final decision to purchase a new construction home.

• A buyer’s agent will be there even after the home closes - It is routine for issues to arise during the first year of a new home. Your agent will be your advocate for issues to be addressed.

• There is no cost to you! - Buyer’s representation is part of the builder's marketing budget.

Dave Schott is Residential Construction Certified and a Certified New Home Specialist. He knows how to ensure your home is built right.

 Schedule Your St. Louis Area New-Home Buying Consultation Today!

Whether you are an experienced luxury home buyer or a first time buyer, contact Dave Schott to schedule your initial home buying consultation. We will provide you with a pleasant, relaxed home buying experience and will help you find the home of your dreams.