Buying new construction? Step 1: Call an Agent

Yes, you need a realtor when buying new construction!  

Most buyers don’t realize that having an advocate on their side when purchasing new construction is pivotal.  And, it costs the buyers nothing!  Realtors can give advice on the new development’s HOA, assess the developer’s reputation, and assist in making sure the buyer has all the information from the builder and understands the fine print.

What makes purchasing new construction different? 

Purchasing new construction versus a resale is a whole different ball game when it comes to closing costs. When buying a brand new home the buyer needs to know the right questions to ask, and a realtor can help with that! Here are a few examples of questions that could save the buyer money and prepare them for closing: 

• Who pays transfer tax? (All builders are different)
• Is there an initial contribution to the HOA? 
• What will the builder pay toward the social membership?
• Is there an impact fee the builder is asking for sewer and water? 
• Is there an incentive to use the builder's in-house mortgage company and does that same discount apply if cash is used?  

The builder representative works for the builder NOT the buyer.

In this seller's market, the realtor knowing the builders' representative can make or break the purchase and protects the buyer’s interests. The agent can work directly with the builder’s representative to assist the buyer with making appointments for viewings, getting on the list for releases, following-up on incentives and managing delivery dates. This is why finding a dedicated realtor that has experience working with buyers on new construction is important. Realtors can accompany their clients on pre-construction walk-throughs and final walk-throughs and can even represent the buyer if they are unable to make important appointments.     

Do buyers need a home inspection for their new home?

YES!  It is highly recommended. Although most local builders are terrific, remember the subcontractors are building many homes at once. They may not catch something that falls through the cracks before the one year warranty is up!  Problems such as structural issues can harm the integrity of your home for years to come. To avoid this, buyers should use the right new construction inspector that is referred to them by their agent!