Buyers are often confused at the role of a good residential real estate agent. They think that the agent takes them out, shows them houses and sells them one. The agent is just the gatekeeper of the lockbox and keeps them from having to attend open houses. So these misinformed buyers think that they can drive themselves to the new home community, tour the homes and buy one without any assistance. That is comparable to going to your local drugstore and buying an over the counter medication for a cold versus walking behind the pharmacist’s counter and helping yourself to get a bottle of prescription medicine.
Then there’s the myth that the buyer will get a better deal if they buy without an agent. (There is a reason the prescription medication behind the counter is taken and dispensed based on the recommendation of a trained doctor.) In some new home communities, the “on-site agent” is not even a licensed real estate agent so they can operate under different rules and laws. A good buyer’s agent will ask the right questions and make sure his or her client is getting all the available information. Here are some examples:
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Zoning and possible uses of land adjacent to the community
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What land behind your lot belongs to you vs someone else
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Builder reputation
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Developer reputation
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Desirable options/upgrades/finishes
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How restrictive covenants may be perceived for resale
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Commuting times
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Review the contract – builders usually use their own contract rather than the standard contract for your state
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Clarifying the difference between builder deposit vs earnest money
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Amount of possible negotiation room on price
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Amount of possible negotiation room on other items
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Lot selection – direction the house faces, placement of house on the lot, slope of lot
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Expected appreciation on lot choices such as cul-de-sac, wooded lots and other premium lots
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Having a witness and advocate at builder meetings
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Helping explain what is involved in finishing that unfinished attic or basement and things the builder can do at new construction to make it easier or less expensive later
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Clarifying what is covered under warranty and what should be fixed by the builder PRIOR to closing or it won’t get done
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What are acceptable building practices for the area
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Expectation of what you will add in upgrades beyond the base price
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What items have been offered or discussed by the sales agent but are not in writing anywhere on the purchase paperwork
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Evaluate financing offers from the builder
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Financing contingencies
Buyers become sellers down the line and then realize that they did not have a key piece of information that would have changed what home they purchased or that the key piece of information is an issue for resale.
A good buyer’s agent is an asset that will ultimately save buyers money and prevent them from buying a home that becomes hard to sell later or costs money long-term that undermines that “great deal” they thought you were getting. This is especially important when some subdivisions are not getting finished due to builders going out of business and builders are dropping prices on their homes to get them sold in this market.
