If you are considering having a new home built, one of the best decisions you can make is hiring a Buyer’s Agent to represent you as the buyer. Following are the benefits of working with a Buyer’s Agent.
An Experienced Buyer’s Agent is Vital in Negotiating New Home Construction Sales Contracts
A Buyer’s Agent experienced in new home construction is a vital resource when buying new home construction for several reasons.
1. They understand the specialized language and multitude of details that are unique to new home construction sales contracts
2. They know what to watch for – both what’s in the typical new home construction contract, and what may not be but could, or should, be included
3. Builder’s sales agents have great respect for Buyer’s Agents who are experienced in new home construction because they know they are working with a professional
4. Your Buyer’s Agent will help you understand everything in the contract before you sign it
Even if you have bought or sold real estate in the past, a new home construction sales contract differs significantly from purchasing an existing house and can be confusing. Misunderstandings can lead to costly mistakes, especially if issues arise during construction.
A Buyer’s Agent Represents You, the Client, Not the Builder
Many homebuyers believe they can save money by going through the builder’s sales agent, but this can be a costly mistake because the builder’s sales agent works for the builder, not the homebuyer. When you hire a Buyer’s Agent, your interests are protected – at no additional cost to you, the buyer, and the builder almost always pays all sales commissions. It just makes sense to have a professional looking out for your best interests.
Here’s how that works. When a builder enters into a standard listing contract with a realtor to list the homes they are building for sale, the listing contract includes an agreement that the builder (as the seller) will pay a commission, set as a percentage of the purchase price to the listing agent. When a listed home is sold, listing agent and your Buyer’s Agent split that commission.
A Buyer’s Agent Knows the Builders
An agent who knows the local community will have the skills and knowledge to help new home buyers make good decisions when choosing a lot, floor plan, and upgrades. This saves you the time of researching builders, which is a critical step because not all builders are the same – your Buyer’s Agent is far more likely to know the community of builders in the greater Dane County area and can steer you to a reputable builder that constructs the type of new home construction you’re seeking. In addition, your Buyer’s Agent can talk with previous clients of builders to see how things are going after moving in.
A Buyer’s Agent vs. a Real Estate Agent
It’s important to remember that unless and until you sign a buyer’s agency agreement with a real estate agent, that agent represents the seller’s best interest. That’s because an agent's default client relationship is with the seller under Wisconsin State law.
A Buyer’s Agent Can Actually Help You Get a Better Deal
Though you may be a good negotiator, a Buyer’s Agent who is experienced in new home construction and well-versed on the ins and outs of new home real estate contracts gives you an edge during the bargaining phase. Builder’s don’t reduce their prices, but an experienced Buyer’s Agent can help you get incentives, have certain closing costs paid, get design discounts, etc. - they know how to work things within the sale price. A Buyer’s Agent will be aware of any upcoming promotions, and they understand the area’s sales record. This information is particularly helpful if you’re moving from out of state and don’t know much about the community.
Because your Buyer’s Agent knows what you want, and always working under your direction, they can negotiate the many varied details of the transaction on your behalf, such as:
• Purchase price
• Earnest money
• Required/appropriate testing
• contingencies you want included in your offer
Your Buyer’s Agent is always working on your behalf to help you get the new home construction of your dreams.
Protect Yourself from the Start by Hiring a Buyer’s Agent
You should also know that if you call about or go look at any new home construction on your own, you may be required to work with the agent you talk with or that shows you the home – even though you didn’t choose them and may not want to work with them – if you want to buy that home because that agent is considered to have acquired a “procuring cause.” It’s always best to protect yourself from the start by hiring a Buyer’s Agent.
Agents Consider the Buyer’s Investment and the Home’s Resale Value
A builder’s agent is usually focused on an upcoming sale, but a Buyer’s Agent has a long-term focus on a home’s investment potential. Your Buyer’s Agent will point out smart upgrades to get the most bang for your buck and identify things that are better done on your own. When a buyer uses his or her own agent, they’re more likely to end up with a home that has a high resale value.
A Buyer’s Agent Can Help Oversee the Construction Process
When building new home construction or buying new construction real estate, it’s good to have an extra set of eyes on things throughout the construction process for many reasons, such as:
• The timeline for building and moving into new home construction is longer than buying and moving into an existing home – and can be significantly longer
• When having a new home built, even working with a general contractor to do the work, there are still many opportunities for things to go haywire
• Even with new construction you need to have a home inspected; they’re looking out for your best interests.
However, this isn’t always easy to do, especially for out-of-state buyers. An experienced Buyer’s Agent can help identify potential problems and help you navigate these situations before they become real problems. A trained Buyer’s Agent will watch over the process of building your home, go to meetings with the builder and subcontractors, take videos and photos for you along the way, ensure that construction is on schedule, and provide progress reports.
Leslie the Realtor is an Experienced Buyer’s Agent
With the peace of mind that a professional Buyer’s Agent like Leslie Haverland can give you, you will find the entire process of building and moving into your new home construction much easier – and a great experience! Leslie Haverland has negotiated over 10 new home construction sales contracts and is ready to serve as your Buyer’s Agent.
Leslie Haverland |Leslie The Realtor Inc. |26 Schroeder Court|Madison, WI53711|608.334.4052