Thinking of buying new construction? Should you use a realtor for new construction? Will you save money if you do not use a realtor for new construction?
So you’re thinking of buying a new construction home here in Colorado. And maybe you’re thinking that if you don’t use a real estate agent, that you’re probably going to save money, right? Well, do you realize that the commission is already built into the price that they have? So whether you have a real estate agent or not, it isn’t going to change how they have their price. Now, the sales agents in those offices, they’re actually great resources for you because they can tell you the pricing, the phases, and when homes are going to come up for the open public and so forth. But do you realize that at the end of the day, those sales agents, they represent their client, the builder? And so their interest is to protect the builder’s interest.
Having a buyer’s agent when you’re buying a new construction home here in Colorado actually has many benefits if you use an experienced real estate agent. And what I mean by that is experience meaning that we have worked with plenty of builders in the past. So we know the quality of their work, and we also know the record and the reputation. Because let’s face it, everybody has something to say after they’ve done a new build about certain builders, the problems and so forth that they’ve had to deal with. So we can give you our experiences upfront on that. Now, the other reason to have an experienced real estate agent when you buy a new construction is depending on the situation, sometimes you can get some potential upgrades on a place, or we can negotiate some closing costs in there and things like that. Now, again, those are case by case usually, but there are… Sometimes when we dig in there, there’s always some opportunity for that.
Now, the purchase contracts during the new construction phase are very complex in their many pages. In fact, I just helped some people buy a home out in the Sterling Ranch area in Littleton, Colorado, and I bet that purchase contract had 70 pages on it. So those contracts are put together by the builder’s attorney. And again, they are protecting that builder with all this paperwork. And again, their purchase contracts aren’t anything like the standard Colorado by purchase contracts that we use on other transactions. So just keep that in mind. Now, back to all the multiple pages I referenced. You need to understand the clauses in there. And if you don’t have somebody that’s experienced with reading that paperwork, if you don’t, say, go in there, if you’re going in there by yourself and you don’t have an attorney look at it or don’t have an experienced agent, there’s clauses that you really need to know about in there to protect yourself.
Now, along with buying new construction homes, there are always those building delays that come up. And during those delays, the buyer is always left wondering what’s going on. And many buyers out there buying new construction, sometimes they have to sell their existing home months before this project even starts or gets going. So they’re just left out there wondering when the house is going to get done at times. So you need an experienced real estate agent that is like a squeaky wheel, that’ll stay on top of some deadlines for you, just like you do on a regular transaction, to make sure that you have a smooth experience instead of just being stressed out and worried when that house is going to get done. So anyway, there are a lot of benefits using an experienced real estate agent when you’re buying a new construction home here in Colorado. And if you have any other questions, feel free to reach out to me anytime. I would love to discuss everything about that process with you. I’m David Novak with David Novak Homes and RE/MAX Professionals. And I hope you have a great day.
