The Grein Team: Your New Construction Real Estate Agent Experts
Why having a real estate agent for new construction is more important than if you are buying an existing home
“Single-family production should continue to strengthen throughout the year, buoyed by job growth, new household formations, and low mortgage interest rates.”
~National Association of Homebuilders’ Chief Economist Richard Dietz
Most knowledgeable home buyers know that they need the services of a professionally-licensed real estate agent when they are looking to purchase a home. They understand that their Buying agent can assist them in many ways, including:
• Helping them find a home that meets their criteria
• Negotiating with the Seller’s agent on their behalf
• Coordinating with other service professionals– inspectors, appraisers, repairman, etc.
• Ensuring that all paperwork is filled out and submitted correctly
All of those services can be extremely helpful when it comes to the purchase of an existing home, but is it really necessary to work with a realtor during new construction – when you are having your own home custom-built?
After all, there is no home to find, there’s no negotiating with the selling party, the contracted builder is in charge of all the other service professionals, and loan paperwork for new construction is usually submitted and approved before any work any work even begins.
So, again, is a professional real estate agent REALLY necessary?
The answer is absolutely and unequivocally YES.
There are a lot of advantages to building your own home, but many buyers are under the mistaken impression that they can somehow save money by NOT using their own Buyer’s agent when purchasing a newly-built home. This misconception can work against them, costing them money and valuable time.
What are Some of the Reasons Why People Don’t Use a Real Estate Agent When Building a Home in the Lake of the Ozarks Area?
Many people who are having a new home built believe that the contracted builder’s representative is there to help them through the purchase process. That assumption is wrong.
Here’s the reality – the builder’s rep works for the builder! It is their job to procure the best deal possible for their employer – the builder. There is no incentive for them to give you any kind of discount.
Even more people believe that by bypassing a professional realtor, they are somehow saving money and getting a better deal. That assumption is ALSO wrong.
The commission for a buyer’s representative is alreadypart of your purchase price. If you don’t use your own representative, you don’t “save” that money—it goes to the builder. Since it costs you the same either way, it only makes sense for you to have a licensed professional in your corner.
Even when they offer some sort of “incentive package”, it is only an effort to monopolize as many aspects of the purchase as possible – using their lender, their title company, and their homeowner’s insurance company. Consequently, there is no system of “checks and balances” to ensure that the builder is on their best behavior.
What Can a Real Estate Professional With The Grein Team Do for You When You’re Building Your Home inthe Lake of the Ozarks Area?
When you work with a real estate professional from The Grein Teamas your Buyer’s agent, YOU are the employer – you have someone looking out for YOUR best interests.
The biggest thing your Buyer’s agent brings to the table is experience– in-depth understanding of the entire process of building a brand new home. No matter what the builder tells you, it is possible for your representative to negotiate a better deal for you. Things such as:
• Performs a Comparative Market Analysis (CMA) to counter the builder’s “list price” to make a fair offer
• Free upgrades – energy-efficient windows, premium fixtures, etc.
• Longer warranties
• A waiving of all those little “extra” service charges that do nothing but pad your bill
• Discounts if the work is not completed on schedule
• Application of any manufacturer’s rebates
• Inspection of all contract documents, to ensure that everything you are expecting is put IN WRITING and gets delivered as promised
• Holds the builder—and all the subcontractors—accountable for any mistakes or improper installations
• Coordinates between all parties – lender, builder, inspectors, etc. to make sure the process goes as smoothly as possible
• Deals with any other problems that may occur during the construction process
• Protects your interests by making sure that you sign no closing documents until all promised work has been completed
Here is another way to look at the necessity of having a real estate professional acting as your Buyer’s agent, even when you have opted for new construction –
Most experts would agree that you definitely need a Buyer’s agent acting on your behalf when you want to buy an existing home. So why in the world would you want to do without their assistance and representation during the much-more-complicated process of new construction?
During What Part of the Process Should I Contact an Agent?
Ideally, your real estate professional should be acting as your buyer’s representative from the very first day you decided that you wanted to purchase a home. At the very least, your buyer should go with you to the initial walk-through of the builder’s model home. An experienced agent can help you choose which options you definitely need to buy, and which add no appreciable value or real benefit.
After you have viewed the model home, your Buyer’s agent should be able to give you a list of other homes constructed by the builder, so you can see how they have held up over the years.
When you consider all the protection given and all of the services rendered during the new construction process by your professional real estate agent – all at no additional charge to you –there is no reason why you should choose to try to handle such a complicated process without their guidance.