Should I Hire a Realtor When Buying New Construction?
[fa icon="calendar"] September 11, 2021 / by Home Services Expert
If you are building your own home, you want everything to be done correctly just as you intended. After all, this will likely be your biggest asset once it is completed. With that in mind for your new home construction, you must decide whether to hire a realtor or simply rely on the builder's representative.
Some people find that the builder's representative may not always have your best interests in mind because they work for the builder. It's important to consider who is advocating for you during every step of the home-building process.
Are You Tempted to Avoid Hiring a Realtor?
It's understandable that you don't want to spend more money than necessary building your new construction home. You've scrimped and saved to see the ground broken on your dream home and you might be tempted to forgo hiring a realtor to oversee the project. But hiring a realtor is actually a solid investment strategy when building your home.
Below are some very good reasons why you may want to consider hiring a realtor to represent your interests as your new home is constructed.
Help with Narrowing Your Options
Are you the independent type who doesn't want to live under the constraints of a homeowner's association (HOA)? Or maybe you're a retiree who wants to spend afternoons on the links. Perhaps you have a young and growing family and easy access to a community park and pool is your priority. A realtor can offer invaluable help with sorting through the options in your price range.
Your Realtor Will Oversee Inspections
Reputable builders realize that the quality of their work establishes their reputations in the communities they serve. They try their hardest to satisfy their clients on each job. But mistakes happen and details can get overlooked.
Your new home construction will need inspections conducted throughout the process. For instance, without a septic tank inspection — something about which few prospective homeowners are knowledgeable — you won't realize you have a problem until it is exorbitantly expensive and inconvenient to repair. Having your realtor present during the septic tank installation and inspection can avert a costly disaster.
You Need a Keen Negotiator
When it comes to changes you may want made to the original blueprints or any upgrades to standard materials, you are probably not going to know the reasonable costs of those changes or prices. But your realtor will, because they are familiar with the cost of building materials all up and down the supply line.
They can negotiate a good price for the alterations or changes and make sure that you get what you are paying for without being overcharged by a supplier.
Realtors Can Lead You to the Right Lender
You will need to find a lender to finance the construction of your new home. While there is certainly nothing wrong with approaching the financial institution you frequently bank with to finance your new build, your bank might not offer you the lowest interest rate or the most optimal terms for your loan.
Realtors deal with lenders every day in their jobs, so they have access to many more lending institutions and financing programs for which you might qualify. Also, it is far more challenging to arrange a loan for a new build construction than it is to get a loan for an existing home purchase. You could waste lots of time calling around to different lenders when a realtor has a list of them at the ready.
Your Realtor Keeps the Project Rolling Along
All sorts of issues can crop up to delay your new home construction. From inclement weather to supply chain problems, your project can wind up taking far longer than you had anticipated. Some of these delays are inevitable and unavoidable. But others may result from poor planning.
Your realtor can foresee a problem before it becomes a major headache. They can run interference with state and municipal licensing agencies to ensure that all permits and work orders are straight and all facets of the project are up to code. There are few things as costly and frustrating as having the jobsite shut down because a subcontractor failed to get a permit.
When it comes to new home construction, allow your realtor to become your right hand. By the time you take possession of your home, you will wonder how you ever considered doing without your realtor's valuable contributions to the project.