10 Reasons to Use a REALTOR^® When Buying a New Home

 

Although 97% of home buyers utilize the services of a REALTOR® when purchasing a resale, they don't realize that a REALTOR® is even more important when purchasing a new home. A market knowledgeable REALTOR® representing you is critical to achieving your goals in the purchase of your dream home. Consider the following ten facts:

 

1. Lot Size and Location: The lot you select will determine a significant amount of the home's future value. Your choice should not be based on what the builder needs to sell but what gives you the best return on your investment and meets your individual needs. The first 3 rules of real estate are: location, location, location. Make your selection based on your personal choice and then let us assess it according to how it will appraise in resale in relation to other lots available.

 

2. Accompaniment to the Design Center: What standard builder features or upgrades will directly impact the home's future value? Will the upgrades merely return enjoyment or actually create more value in resale? Your choice should be based on what gives you the greatest enjoyment and/or return on your investment. Knowing how these selections impact future value should also be a consideration.

 

3. Get Clarity on Upfront & Non-Refundable Expenses: When entering into a new home transaction with a non-represented consumer, builders often do not explain what expenses are upfront and/or nonrefundable. Let us assist you in the process before you sign anything and make sure all of the costs, upfront, nonrefundable and long-term, are clearly communicated and understood by all parties.

 

4. Get a Comparative Market Analysis (CMA) Before you Sign: Builders will not tell you if the same model home on the next street sold for $20,000 less than they are asking you to pay today – they are trying to get top dollar for their product, representing their own interests. Let us offer you a Comparative Market Analysis (CMA) on the new home you are interested in purchasing to see how much you could save.

 

5. Get the Best Loan for Your Needs: Builders often offer incentives to work with their mortgage company and this may not be in your best interest in the long run. Allow us to compare the builder's incentive with the actual mortgage product as well as other products available on the market that are competitive. You will most often pay more in mortgage closing fees and interest long term than the actual builder incentive is worth.

 

6. Watch OUT for Those Appraised Values: A builder often gets his mortgage company to qualify you based on the assessed value of the unimproved property. When the property gets reassessed with the improvements of a home, the increase in taxes can place a tremendous financial strain on a budget based on a lower tax assessment.  Let us review property taxes in the neighborhood that have been reassessed with improvements and make sure you are comfortable with the payments based on the future taxes. In this way, you know your future obligations before you purchase.

 

7. The Home is New, Why Should it be Inspected?  A recent study showed that 45% of defects found were present when the home was purchased new. Your builder should stand behind warranties and guarantees, however, making needed improvements/corrections to the construction after you live in the home or addressing code/repair items after your closing may be costly, inconvenient or at the very least, complicated. Let's get a qualified inspector to give you a professional opinion of current condition and potential future problems. Often, this can result in making a builder bring the home up to a code.

 

8. Market Knowledge: In addition to the immediate value of the home, there are other important facets to purchasing that should be considered. When you work with us, disclaimers and disclosures endemic to the area/subdivision, addenda regarding homeowner's associations, recent information regarding the surrounding community, the local schools, and utility districts, will all be presented and evaluated. Allow us to guide you through the myriad of local market conditions so you can be an informed homeowner and make the most of your homeownership experience.

 

9. Do You Need to Sell Your Current Home in Order to Purchase New? Clearly, the builder has an interest in the selling of your current home. You should personally select the REALTOR® who will be representing you and be wary of builder recommendations, which may come with hidden incentives that do not serve consumer needs. Choose a REALTOR® whose goal is your highest possible profit and not their builder allegiance. BEWARE of builder’s ‘guaranteed sale programs’ as they will most often only guarantee you 80% of current market value, in order to ensure they can turn around and sell your old home for a healthy profit.

10. Home Services to Save You Time and Money: There are many services you need in a new home purchase, for example, lawyers, financing institutions, moving company estimates, utility connect and disconnect, cable or satellite hook-up, and estimates on homeowner's insurance. The builder expects you to handle all of these, while we will refer you trusted and capable professionals and help you through the entire process.