Why use your own buyer’s agent when buying a new home?
Have someone who represents solely your interests during the transaction. Your own buyer’s agent look after your own interests while the builder’s sales office agent look after the builder’s. Both will be committed to providing you with excellent service in buying the home but they represent their own sides only.
Negotiate any available buyer incentives toward what may matter most to you. Depending on the local real estate market and how fast or slow these new homes are selling and how aggressive the builders are in moving new inventory, they may be open to negotiating with your buyer’s agent on incentives either toward upgrades, financing, closing costs credit, or purchase price.
Of course, be prepared to have the builder stick to their pricing and available incentives if any. As buyer’s agents, we have always tried to negotiate on behalf of our buyers anyway. We have had builders give our buyers special pricing and we have had builders who have said no even after multiple tries. At the end of the day, all parties involved agree that it’s always worth a try.
Prepare a Comparative Market Analysis to find out if you are getting a good deal
We do our own research of comparable new homes for sale and what other builders in the area are offering other buyers while comparing the value, location, and features of each new home community. All this while keeping in mind comparable existing home sales in the area to find out if our buyers are getting a deal or not. It never hurts to have your own agent looking out for you.
Sometimes, some of our new home buyers really fall in love with the new homes especially after visting a nicely appointed and highly impressive model homes and we are just there to make sure that they are indeed making the right decision in purchasing a specific property over many other home choices available to them.
Help coordinate and answer questions during the escrow process
As your buyers’ agent, we can also help you coordinate and be there for you throughout the home escrow process as you work with escrow and title company reps. We help guide you in timing all the events leading up to your move-in date. We also work hand in hand with your lender and are there to make sure that your loan is moving in the right direction if you are obtaining a mortgage.
Be a voice in helping your prioritize options and upgrades that increase home value
We help you work with your new home design consultant and start figuring our a budget and choosing which upgrades and options will add value to your home and your lifestyle. Some of our buyers who are on a budget find that it can be difficult to prioritize which upgrades to choose (as each upgrade adds to your purchase price) which they know will eventually affect their loan amount and monthly payments if they are obtaining a home mortgage.
Provide help and expertise in figuring out real estate contracts, paperwork, and disclosures and enlighten you with your responsibilties as a buyer
Help understanding purchase contract and other disclosures and forms. By the time our home buyers have decided on buying a new home, usually we have worked with them and shown them other potential candidates of existing and other new homes that meet their criteria and budget, then it’s time to either make an offer on a home or sign a purchase agreement with the builder’s sales representative at the builder’s office. To some, it is intimidating to sign legally binding documents and contracts that have been prepared by the seller or the builder. This is different from making an offer on an existing home, where we prepare our own purchase offer documents where we have the ability to customize the offer price and terms based on what we can deliver on and what we are comfortable with subject to the seller’s agreement of course. When buying a new home, you maybe signing multiple documents that may or make not sense to you. By having an agent on your side, you have an extra set of eyes and ears to help make sure that what you are legally entering into is acceptable to you in its entirety. This provides you peace of mind knowing that you have your professional on your side.
Your buyer’s agent real commission is typically paid by the seller, but your agent works for you.
Real estate commissions are typically paid by the seller or builder when buying a brand new home construction. It’s no different when you buy an existing home or end up buying a brand new home. When pricing new homes, builders typically calculate how much in real estate or sales commission they are paying out to the cooperating buyer’s agent and price of the homes are the same to every buyer no matter if they bring their own agent or not.
If you do not bring your own agent when you visit the property for the first time, it is simply good for the builder because they may not have to pay a commission, but this does not mean any more savings or incentives to you as the price and incentives stay the same. Builders are very sensitive to not discounting their inventory as they do not want to establish a declining price trend for future buyers especially buyers that need to obtain a mortgage still need to have the homes appraised. As builders release new homes for sale in a new phase, they of course would like to release new inventory at higher prices, not lower. So, you pay the same for the home no matter if you bring your own buyer’s agent or not. Your buyer’s agent is there to work for you and be deserving of the commision paid by the builder at closing for bringing the the buyer, to the builder’s sales model/office at first visit.
Real Estate help available to you at all times no matter if you buy a new home or an existing home
Depending on the inventory in the market, while searching for homes that fit our buyer’s criteria, they may save more money buy buying existing but newer homes even after visiting or falling in love with the super sharp model homes. As the buyer’s agent, we are of course right along side the buyer in helping them make an offer and purchase a home , new or not, no matter who the seller is. Remember, we are not beholden to the specific builder or any seller. A buyer’s agent represents only you so you can have the peace of mind that the home you are buying is right for you.
Figuring out whether to use the builder’s preferred lender or your own lender that you currently work with
Most builders offer the buyer an extra incentive for using their in-house or preferred lender. The incentive can be so attractive that even buyers who have a tight working relationship with their own lender who have been there for them during the purchase process can be severed because it may make financial sense to go with the builder’s preferred lender. Some comparisons are easy to spot and some are not. From our experience, sometimes this may be a tricky one, where we help the buyer with coordinating quotes and HUD estimates from the lenders being compared and breaking it down so the loans are compared fairly (apple to apple). Sometimes, we have had to be the go-between as our buyers shop for the best loan for them. Remember, your buyer’s agent are also not beholden to any lender, seller-preferred or not. Your buyer’s agent only cares that you get the best loan for you and it does not matter who the lender is. It may matter to the builder on who you get the loan from (depending on their affiliate arrangement with their own subsidiary lender or with an outside lender they partner with) but it does not matter to us. All that matters to us is that you are given the right loan that fit your needs and budget and that you are working with ethical lenders who will are honest and do right by you.
There are plenty more reasons why you should use your trusted real estate agent when buying a brand new home construction. Real estate agents work hard to serve all your real estate needs and are deserving of the commission that is paid to them by the seller. The really good ones make the process look so easy because they do a lot of things in the background and just make sure that all goes smoothly in your home purchase.
Bring your real estate agent on your first visit to the new home community sales office/model homes to make sure they get paid their commission.
Remember that if you want your buyer’s agent to get paid even when you have selected to buy a home in a new home community, make sure that when you visit the new home sales model or office that you bring your realtor/agent in the first time you visit the community and register them as your agent with the builder. The last thing you want to do is for your agent, who has been working countless hours for you in your home search to not get paid. Remember that agents are not paid a salary, they only get paid a commission until escrow successfully closes.
Real Estate Professionals who specialize in new home communities in San Diego County
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