It’s a really important topic. So many people do not understand so much about this. I’m gonna run through the 9 Reasons real quick.
#1: The sales agent works for the builder.
This is no secret. They don’t work for you, they work for the builder! So what that means, you’re not being represented. Sure, are the sales people nice at builders? They are probably some of the nicest people you will ever meet to be honest. They are not representing you, they are representing the Builder. So that’s a major problem guys! A major major problem! Once you go to contract, you will not deal with that salesperson, you will deal with someone else entirely and that’s how it is designed.
#2: On the contrary a real estate agent represents you.
Think of this way, what if you had to go to court and you thought, “you know what I don’t want to be represented by an attorney, I’m going to represent myself.”? I can think of one that did not turn out well and that was Ted Bundy. O.K, he represented himself and he ended up not doing well. So I just wanted to mention that. You want to be represented with a professional realtor. I get it guys, not every realtor is professional. So find a professional one and make sure you hire them to represent your needs – ideally a realtor that specializes in new construction. Someone that works with all the builders, they know all the ins-and-outs of what the builders do, what they don’t do, what you can get away with, they know how you’ll be able to negotiate the best deal possible. At the Tony Baroni Team, we deal with all of the builders and we’ve sold houses through all of them over time. There are hardly any builders locally we have not worked with or that we don’t know. It’s really really important that you have a realtor represent your best interests.
#3: With new construction, you don’t save the money by not using a real estate agent.
A lot of people think, “well, I don’t want to use a realtor because I want to save whatever that commission is. I want them the pass those savings onto me.” Here’s the news guys, the builder does not pass those savings on to you, they keep it for themselves. They figure that a realtor is going to be a part of every transaction. If there is no realtor commission, they simply pocket it. So not only are you choosing to not be represented, you’re not getting any incentive either to not have an agent. Crazy stuff here – I want to make sure everyone understands – they plan on paying a realtor and if a realtor is not involved, they are going to pocket it themselves. They are not going to pass those savings onto you for not being represented.
#4: Your new construction realtor is your advocate.
They are going to make sure that everything is set up properly. A professional realtor knows what closing costs are. Let’s say for example they say $6,500 in closing cost is what they’re paying. We’ve been able to get all your closing costs. If the closing costs were $15,000, get all your closing costs paid for instead of just the $6,500 the builder is offering through negotiations. . Your new construction realtor will help you negotiate what’s important to your individual needs.
#5: Your new construction realtor should have awesome referral sources.
So for example we have some home inspectors we work with. They go through each phase of the construction process. Guys, they always catch something when they inspect – even a brand new property! So, for peace of mind it would be worth getting a home inspection throughout the phases to make sure your house is built the way it should be. Also: homeowners insurance referrals, flooring referrals -maybe you want to put carpet in, but once the carpet is shot, you want to put in wood flooring (maybe because the builder includes carpet). All these things matter.
#6: A new construction realtor should hold your hand throughout the process.
If the builder can get 20% as a deposit, they would. It’s typical that we negotiate what that is. For them to take the home off the market or start the construction process, it may be $2,000 or maybe $5,000. We’ve had builders take $1,000 through negotiation but if they could get 20%, they’re going to get 20% from you so you need a realtor representing you for that.
#7: Advice Regarding New Home Construction Upgrades
you know, what upgrades pay later when you need to go to the Design Centre, what matters when you go put stuff in, when you’d make decisions on what finishes you should go with versus outside, we actually have vendors who can do it on the outside AND on the inside and we can tell you: “You know what, pulling up all the floors is a pain, so you want to just go ahead and put the wood floors in immediately even though there’s a little more cost it probably makes sense for you to do that considering this.” We will help you weigh through all those options.
#8: Keeping Your Home Builder Accountable To Timelines
If the builder says we’re going to close on this time, we’ll try to keep them on task. So many people we go to sell their house and they already went through the Builder they were represented and we’re talking months of delay: three or four months after the closing day when they were supposed to close their calling me saying “Tony I can’t put my house on the market yet, the builder is way behind.” So we’re gonna help keep them on task.
#9: Assistance With Selecting The Perfect Lot For Your New Home
What lot do you choose? Are some lots worth the extra cost? Closing cost, as I mention.
Next builders pay your lease cancellation, right? Where you buy the house now but you’re in a lease for six more months but there you want to buy inventory home we had the Builder actually pay the cancellation fee for your leaves to be able to get into this house.
Next we’ll help you refer you to a lender, there’s an in-house lender; let’s say you can’t get pre-approved with that in-house lender. We will probably be able to get you pre-approved elsewhere and then work to deal with the builder to make sure you still get incentives as if you’re using a in-house lender, very important stuff.
And then last but not least,
Referrals for the future.
We’re building life-long relationships, as realtors ourselves, with the Tony Baroni team, we want to make sure you’re cared for right now, whether you need a pressure washer, whether you need a landscaper, homeowners insurance, you name it, we want to be a resource for you and to have a lifelong client that we can help guide through the process.
There’s not a day that goes by after 15 years in real estate that someone doesn’t ask me for some type of referral: “Who would you use for this, who would you use for that?” and we’re happy to set you up with our network.
They say, “work your network”, we’ve already done it, so you don’t need to recreate the wheel. We can pass on awesome people to you forever.
And then of course the last thing I’ll say you’ll be invited to all our client events in the future
and you’ll be part of the Tony Baroni Team family.