Can you use a real estate agent to help you buy a new home? I thought you could only use a real estate agent to help you buy a resale home. I just looked at a Canterra new home subdivision Terrazzo at Tartesso in Phoenix that I am interested in. I like that Canterra Homes only builds single story homes. I do not like neighborhoods that have these monster two story homes all over the place. I would like to talk with someone other than the new home salesperson about the property however. What do I need to know about buying a home from a new home builder?
People who look at buying new homes have a different focus than home buyers that are only interested in resale homes. They do not want to inherit someone else’s bad decorating ideas, worn carpet, dirty appliances or ugly landscaping. They want to start from scratch. If this is you and you have always fantasized about purchasing a brand new home here are some tips to get you on your way to your dream home.
Get A Real Estate Agent To Represent You For A New Home Purchase
The person that you meet at the subdivision is working for the builder. They are not working for you and do not represent you. If you are going to see a builder’s subdivision you should check into whether or not the builder pays a buyer’s agent a commission if you buy a home from the builder using your agent. Some builders pay and some do not. If the builder pays a buyer’s agent then take your real estate agent with you when you go to the subdivision.
If you hire a buyer’s agent, most often the fee for your Realtor will be paid by the builder. This is called a co-broke and it is very common practice in the real estate business. Co-broking has been around for a long time so it should not be a surprise to anyone that you are looking to use an agent to represent you. You may want to ask the builder ahead of time what they pay when working with buyer's agents. Typically your agent will be paid 3% of the sales price.
A Good Agent Will Help Negotiate A Good Deal And Save Your Money
A good real estate agent will be knowledgeable in what to look out for when buying a home. You may get advice about what is the best lot to get. Not all builder lots are the same. Backing up to a busy street can drop the value of a home by 20% or more. In the South West having a backyard that faces west is not preferred. In the afternoon in the summer, the sun is oppressive. You do not even want to be in your own backyard in the afternoon. You may not know this information on your own. Picking out the wrong lot could have you upset for a long time after you move in.
Do I Have To Use The Builder's Lender?
By law you do not have to use the builder’s lender. You may go and use whomever you please. Some builders offer incentives if you use their financing. Some builders offer pool, landscaping and upgrade packages if you use their financing. It cannot hurt to check around with other lenders to see what kind of deal that they are offering you. The best thing you can do is to get prequalified before you even show up to the builder subdivision.
