Last Updated on 09/05/2019 by hortonteam
You’re finally ready to pull the trigger on new construction when you find out that the builder is offering you your own builder’s agent to help you through the process. You may not realize it, but this could be to your detriment! Learn why it’s a necessity that you have buyer representation for building.
Builder’s Agent vs. Buyer’s Agent
When finding buyer representation for building, you may be tempted to work with the agent your builder has offered to provide you. It makes sense—the builder’s agent most likely knows more about your prospective construction and the builder company itself. Why wouldn’t you take advantage of their free services? To find the answer, you have to bend your way of thinking. In a new construction project, the builder is technically the seller of the home, which makes their agent akin to a listing or seller’s agent. As you probably know, you should never “go with the guy on the sign” (i.e. call the listing agent and divulge your interests), and the same goes with buyer representation for building. The builder’s agent is working to obtain the highest possible sale price for the new construction project, meaning they will be operating with the builder’s best interests in mind throughout the entire process. You can see why this arrangement would be troublesome on your end! Fortunately this issue is easily resolved by bringing in a buyer’s agent to represent you. Not only will you probably save some money, but you’ll also have someone in your corner fighting for your interests.
What Do You Receive with Buyer Representation?
When you decide to bring a real estate agent on board, the whole transaction changes. Now instead of the builder’s agent telling you which items you can or can’t add or how much certain items will cost, there will be negotiations between the builder’s agent and your agent over these types of issues. Many people don’t know that several common upgrades can actually be negotiated into your new construction purchase for free, as the builder often doesn’t want to risk losing the sale. Of course, your agent will need to be tactful and might not be able to meet every request that you have, so don’t expect to double the home’s value without changing the price tag. Another benefit you may encounter is that your agent may have background information about the company you’re building your home through. If your builder is known for charging more than the industry average for a specific amenity or known for overextending important timelines, you can bet that they’re not going to share that information with you up front. If you’re still in the planning stage and haven’t settled on a builder, ask your real estate agent which local builders they would recommend.
Aside from the new construction side of things, enlisting buyer representation for building will also provide you with an industry expert who hopefully knows the ins and outs of real estate in Evansville. There are plenty of elements within a new construction purchase that are the same as they would be if buying a pre-existing home, meaning buyer representation for building is just as advantageous as it is for buying an older home. A good agent should be able to guide you through the entire process while keeping your stress levels in check!
How Much Does Buyer Representation for Building Cost?
If you’re considering employing buyer representation for building in Evansville, you’re in luck! Just like with a transaction of a pre-existing home, the buyer doesn’t pay anything to the agent representing them. Those fees are paid by the builder through a commission rate. On the flip side of that, not using a buyer’s agent to represent you can end up costing you significantly more if you hope to add several upgrades to your home or land on a specific sale price. Just another reason to work with a local buyer’s agent during new construction!
Securing buyer representation for building is a necessity if you want to make the most of your new construction transaction. Don’t miss out on your favorite features or a lower sale price!