Why Do I Need a REALTOR® to Build a New Home?

Dated: October 11 2021

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Isn’t that what the salesperson in the model home is for? Aren’t they there to help guide me through the home building process?

Let’s look at this from the builder’s point of view.

The salesperson in the model home works for the builder. They are paid by the builder to sell you a new home for the highest Price possible. The more you pay for your house, the more the salesperson and the builder will make on the sale. In fact, every person that you encounter during the building process will always be working on the builder’s behalf. The job site superintendent who oversees the construction of your brand new home will always side with the cheaper, less costly approach because it affects the builder's bottom line, which essentially affects his performance bonus.

Are they going to cut costs somewhere that you may not know about? Are they following building codes?

While all of these people may be wonderful, they represent the builder. Just as you need a Real Estate Agent working on your behalf when buying an existing home, you also need someone to represent you when building a new home and when buying an inventory home.

Let’s look at some reasons why having your own real estate agent is in YOUR best interests.

    • Your Real Estate Agent is there to look out for YOU – We’ve kind of covered this, but it’s worth repeating. Your Real Estate Agent is there to help you get the most house for your money, while educating you with important homeowner information, overseeing the details of your new home purchase and most of all saving you money!
    • Your Real Estate Agent is there to negotiate for YOU – Think you can’t negotiate for paint colors or countertops with new construction? Think again. Your Real Estate Agent will negotiate on your behalf without you having to deal with the awkwardness of haggling with the salesperson.
    • Your Real Estate Agent will help you with financing – Most new home builders will try to steer you toward their finance company for your mortgage loan. Why is that? You guessed it; this stands to benefit them. They make more money, if you use their financing. Your agent will help you look at all of your options, so that you can choose the loan, and lender, that is best for your situation.
    • Your Real Estate Agent will oversee your home inspection – Do you really need a home inspection of a newly built house? Absolutely! Many times, there are hidden defects with new construction that are not so obvious to first-time home buyers or even experienced homeowners. Remember the building code standards we mentioned earlier? Addressing these issues before you have moved into your home is much more convenient to you as the new home buyer. With an inspection report in hand, it stands a greater chance of being fixed before you move in verses you finding them later long after closing! This will save you a lot of inconvenience and headache. 
    • Your Real Estate Agent will advise you on resale value – Most home buyers never think of needing to move again...while they are in the process of building their dream home, right? Your Real Estate Agent does! Your Real Estate Agent knows that life happens, like job transfers, an unanticipated bundle of babies may come along or even early retirement due to winning the lottery. Your Real Estate Agent will offer suggestions and advice on floor plans, upgrades, and lots of choices and decisions to help you get the most money for your investment and attract the most buyers when, and if, you need to sell.
    • Your Real Estate Agent can help you keep things in perspective – You’ve set a Price limit but once you see all of the options available in the builder's design studio, your budget may get pushed to its limit. This is when the builder tries to up sale you on all of the interior and exterior finishes available for your new home. This is when you make your house into YOUR home! Your Real Estate Agent will help you navigate through the must-haves and the items you may want to put off until after you move into your new home.
    • Your Real Estate Agent will be there every step – Your Real Estate Agent is there to be your advocate representing YOU as the home buyer every step of the process. Your Real Estate Agent should be at every meeting that you have with the builder. It is encouraged for the Real Estate Agent to be there during your first visit to establish the proper communication channels for negotiating on your behalf. They will help keep the process on schedule and will be another set of ears to remind you of important dates and information needed during the process.
    • The Best Part! It’s Free to you as the New Home Buyer! – That’s right! The builder pays the Real Estate Agent fees. The Real Estate Agent fee is allocated from the builder's marketing budget. Using a Real Estate Agent does not mean they add a Real Estate Agent commission to your home purchase Price. You will not pay more for your home while using a Real Estate Agent, but you do stand to lose a huge benefit if you choose to go it alone! It is very important to have buyer representation when building a new home. Representation is what a Real Estate Agent provides to protect their clients best interests.
    • Where do we start? - While it is ideal that you have your Real Estate Agent with you when inquiring on new construction, builders understand that you may be taking a Sunday drive and decide to pop in and take a peek at that model home you just passed. If this situation arises, give them your Real Estate Agent's name during guest registration. In this case, tell them that you are working with Valerie Wilson and she will be representing you with your home buying decisions. Most builders allow you to write in your Real Estate Agent's name during guest registration. If you sign their form without your Real Estate Agent's name on it, you lose your right to buyer representation. This is where the builder draws the line in the sand. Builders do not let you add a Real Estate Agent's name to the guest registration form during the next visit. If you sign it, write in your Real Estate Agent's name, snap a picture of it with your phone and send it to your Real Estate Agent. You can also defer to sign the guest registration until your next visit, when your Real Estate Agent is able to attend.

Who do we choose as our Real Estate Agent?

Choose an agent that has experience building houses with local builders. With Valerie Wilson, you get the expertise of someone that has built multiple houses with multiple local builders. You are getting the local home builder expert! The expertise you gain with Valerie is having an agent that has been there as a first-time home buyer building for the first time and has relocated their family to a different area and school district. If you are active duty military or a veteran, you will have an agent that understands the challenges that veterans may face during the home building or buying process and can offer solutions to assist. From deciding the town to reside in, to which builder to select, to the type of lot that makes the best sense for your family, to local considerations for resale and even provides color selection advice during new construction. 

If you find this information to be helpful in making your home building or buying decision, consider Valerie Wilson as your real estate agent. To begin the home building process, call Valerie at 317-441-3921 today.

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Valerie Wilson

I obtained my real estate license after falling in love with the adventure of buying and selling homes. I quickly realized that my heart is in serving my clients and helping them through their own hom....

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