New Construction Homebuying

It's spring; it's post-tax season. That means it is time for the annual uptick in new construction.

For many homebuyers, there are quite a few benefits to purchasing a new construction home - customized colors and finishes, new appliances, energy efficiency. There are also a few potential pitfalls potential buyers should be aware of and, today, we're taking the time to talk about those pitfalls and how engaging a buyer's agent to work on your behalf can help you get the best deal.

@2016, paulbr75

​From beginning to end, having a buyer's agent working on your behalf makes the process of purchasing a new construction home more manageable and gives you greater peace of mind.

​A buyer's agent can help identify the building most able to meet your needs.
There are challenges faced by all builders - inclement weather, labor shortages, and supply-chain issues -, but an effective buyer's agent can help you identify builders that manage those challenges and deliver quality homes. An agent working in your best interest can rely on their own experiences, as well as the experiences of their colleagues and their vendors, to learn about builders in your area and their reputations in their communities. As one of the most frequent complaints made about purchasing new construction homes is a builder's not completing a home on time; this frustration can be minimized by allowing a buyer agent to tap into their network and give you comprehensive information about the reputation of builders in your area.

Location, location, location.
Having a buyer's agent that has your back when shopping for new construction can vastly improve the value of your longterm investment. Often with new construction neighborhoods, buyers are choosing lots from a builder's plan and don't always know the questions to ask to make sure the lot meets their needs: is there a utility easement on or adjacent to the property? is the lot on a steep grade? how is the drainage on the lot? A buyer's agent who is dedicated to looking out for your best interests can help you navigate these issues, which is particularly important if you have specific needs: maybe you have small children and do not want to run the risk of having a large drainage ditch or culvert on your lot; maybe you or a family member has mobility issues and a steeply graded lot would make getting in and out of the house more challenging. Beyond those potential issues, a buyer's agent can assist you by cutting through the glossy facets of a builder's marketing plan and making sure that the neighborhood will have the amenities and feature you need and want and that the neighborhood itself is in a location that will best suit your lifestyle.

@2016, paulbr75

"I don't believe in the no-win scenario." - Captain James Tiberius Kirk
One of the most important reasons to work with a buyer's agent when buying new construction is to make full use of their negotiation skills. A buyer's agent working to negotiate on your behalf can help ensure that the purchase of your new construction home is a win-win scenario for all involved: the builder moves inventory and you purchase a home that will appreciate in value over time, while still meeting your immediate and longterm needs. Beyond lot and neighborhood requirements, your agent will assist you in determining which customized features or upgrades will give you the most bang for your buck - both in terms of your home's appreciation and the functionality of living in the home - and which ones will add unnecessary and unwanted cost to the final purchase price.

Ultimately, having a buyer's agent on your side will help you to filter through the sales pitches and shiny brochures filled with special features so that you can make the best possible choice for you and your needs. Acting as your fiduciary, a buyer's agent will not only help ensure the accuracy of your paperwork, but will diligently protect your interests in the contract between you and the builder, even making sure to recommend an attorney who can add addenda that will protect your interests in the case of complications with the build to the contract. 

It is incredibly important to note that you should have a contract with a buyer's agent in place before approaching a builder: many builders will refuse to pay your agent's commission if they are not made aware from the very first meeting that you will be represented by an agent, leaving you on the hook. So, take your time considering what you want in your new construction home and find an agent you trust to work on your behalf... then, find the home you love.