Purchasing a new construction home is much different than an existing home. The home will come with a warranty, so you may think it’s not necessary to use a real estate agent for the transaction. However, not hiring a good real estate agent could be a mistake.
You may hear that not hiring a real estate agent will save you money or you don’t need one for new construction because of the warranty. Without a real estate agent, you may be at a disadvantage. Here are a few reasons why you should hire a real estate agent for a new construction home purchase and a few other tips to help you with your home purchase.
Why you Need an Agent when Purchasing a New Construction Home
There are several benefits to hiring a good real estate agent when purchasing new construction. Having a professional on your side makes a difference in many ways, including:
- Represents You – The site agent doesn’t represent you. They represent the builder, which means they are not there to “help” you. They are there to help the builder. Additionally, the commission is already factored in to the transaction costs for the builder and it doesn’t cost you anything as a buyer.
- Expert Negotiating – You may think a new construction home’s price isn’t negotiable, but it is. With a good real estate agent, you will ensure you get the best deal possible. Typically, the negotiation takes place on things like closing costs and design center credit.
- Construction Issues – Just because the home is brand new and has a warranty, doesn’t mean it was built perfectly. With an agent on your side, you will have an objective pair of eyes to point out any construction issues.
- Objective Advice – You won’t get objective advice from the salesperson working for the builder. However, when you hire an agent of your own, you will get the advice you need.
- Expertise – Are you an expert in real estate law? Do you have knowledge of the contracts associated with buying a house? Putting a professional agent on your side will ensure you have an expert in your corner to protect you.
There are several good reasons to hire a real estate agent for a new construction home purchase in the Jacksonville area. Proper representation is important.
Tips for Buying a Jacksonville New Construction Home
Along with hiring a real estate agent, you should be aware of a few tips for buying a new construction home. These tips will help to ensure you get the most out of your new home purchase. Of course, you will also want to listen to the advice of your real estate agent.
Everything Needs to be in Writing
We don’t live in a world where a handshake and a person’s word means much anymore. You have to protect yourself and get everything in writing. Beyond that, in the great state of Florida a verbal agreement for real estate is not enforceable. Make sure you don’t sign anything without reading it and checking with your agent or a lawyer, when necessary.
Builders may use a customized purchase agreement instead of the common one used in Florida. Make sure your agent gets a copy of the documents before you go to closing so you can review them ahead of time.
Don’t Believe the Model Home is What You Will Get
Builders often show you a model home, which represents what they are building. However, the finishes and the fixtures may not be anything close to what you get. They may use a mixture of standard materials and custom options within the model home. Make sure you understand what you are getting standard and what will require an upgrade.
If the builder doesn’t provide a list of standard features up front, ask your agent to get a list for you. You will also want a list of upgrades and the costs of each option.
Research the Builder
Not all builders have a great reputation. With a little online research, you can discover testimonials, reviews and any news stories. Often, your real estate agent will know the builders in the area and their reputation. They may have worked with them in the past and can give their own insight.
Get Your Own Inspection
Anytime you buy a new home, getting an inspection isn’t a bad idea. Sure, most of the property will be warrantied, but another set of eyes may reveal some construction flaws that slipped past you and the real estate agent. Ask for a discounted rate from the inspector since it should be a pretty easy job.
Understand the Warranty
Warranties for new construction homes can be a bit tricky. Make sure you take the time to understand what will be covered and what won’t be. You should also know how long the warranty will last and fully review all warranty documents before making your final decision.
There are several things that go into the purchase of a new construction home. Without a real estate agent on your side, it can get tricky. You don’t want to end up with regrets later on because you paid more than you needed to or didn’t get your own inspection. Hire a real estate agent for any new construction home and you will gain the full protection of an expert in your corner. After all, it doesn’t cost you anything!
Originally posted 2015-11-30 13:47:59.