Buying a NEW HOME: Do I need a real estate agent?

The answer is probably no if you are buying your fourth or fifth new home. A new home purchase is a complex process involving many entities like the builder, designer, architect, lender, title company and inspectors. The onsite sales representative/counselor is an employer of the builder, and his/her loyalty is only to his employer NOT you. They are people-friendly and appear to give you an illusion that they are taking care of your interests; but, when you read the builders’ contract, it will clearly state that they are representing only the builders’ interest, not yours.

As a buyer, you will need an experienced professional real estate agent to represent you and your interests. Why? Experienced professional real estate agents are trained to deal with new home builders and can help you with
1) Negotiating on the price, options, and incentives
2) Guiding you through structural options and design selections
3) Setting your expectations on critical milestones during the construction of your home
4) Intervening when issues arise during construction and seeking resolution with the builder
5) Ensuring compliance with the contract
6) Going with builder-recommended-lender or going with a non-builder lender?
7) Recommending inspections

Most builders make you sign a contract that have most of the terms favorable to them. Did you know that most of the new home builders can take up to 2 years to finish constructing a new home? Did you know know that once the builder assigns a closing date that any delays from your side will incur $250/day? Dealing directly with the builders’ representative and/or inadequate buyer representation is pretty risky and is like walking into lions’ den with no weapons.

Hence, as a buyer, you need someone to represent you and your interests throughout the new construction process and beyond, until the keys of the new home are in your hands. So, do you need a real estate agent to buy a new home? Of course, you do!! Always!

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