Why you need a REALTOR® even when Shopping New Builds

Buying a freshly built home is straightforward. After all, you're getting a brand-new house with modern amenities, no prior owners, and typically less risk of immediate maintenance concerns. Many buyers assume that a real estate agent is optional when shopping for new builds. However, this perception can be misleading.

Working with a REALTOR® when shopping for new builds can offer several key benefits, from negotiating contracts to understanding long-term property value. A real estate agent is an essential partner in the new construction process, and they can protect your interests every step of the way.

Understanding the Home Buying Process when Shopping New Builds

Buying a new build is different from purchasing a resale property. You aren't dealing with previous homeowners or a traditional listing process. Instead, you're interacting directly with the builder or their sales team. While builders may offer attractive perks, home-buying can still be complex.

• Phased developments: Builders often sell homes in phases, meaning the property you want might not even be available for months.
• Pre-construction decisions: You will need to select floor plans, finishes, and upgrades early in the process, long before the home is complete.
• Contingencies: Builders sometimes include clauses that can alter the deal, such as extending construction deadlines, which can confuse first-time buyers.

Having a REALTOR® by your side ensures that you are informed at each step of the process and that you avoid potential pitfalls.

Navigating Builder Contracts and Negotiations

Builder contracts are notoriously complex, filled with legal jargon and stipulations that might only sometimes favour the buyer. Unlike standard real estate contracts, their legal teams often design builder agreements to protect their interests.

Here is how a REALTOR® can help:

• Understanding clauses: REALTORS® offer experience in reading and understanding builder contracts. They can point out details that could be unfavourable or problematic, like clauses related to construction delays, warranties, or customization.
• Negotiation on your behalf: Builders typically present their prices as non-negotiable, but that is not always true. An experienced REALTOR® knows where there is room to negotiate, whether for a price reduction, upgrades, or closing cost assistance.
• Keeping you on track: Builder contracts often have tight deadlines, and missing one can have serious consequences. REALTORS® ensure you meet all deadlines and fulfill your obligations to keep the deal on track.

Access to Market Insights and Long-Term Value

Many buyers are attracted to new builds because of the allure of fresh construction, modern designs, and the latest technology. However, a new house does not automatically mean a good investment. A REALTOR® can help you evaluate the new build's long-term value based on market trends, resale value, and the neighbourhood's potential for growth.

• Market knowledge: REALTORS® have an intimate knowledge of local real estate markets. They can help you choose a new development in a location poised for appreciation rather than one that might struggle to maintain value over time.
• Resale considerations: While resale potential might not be at the top of one's mind when buying a new build, it is important. REALTORS® know what features and amenities will hold their value or become desirable in the future, ensuring that your investment remains sound.
• Avoiding over-customization: A REALTOR® can help you balance the desire to customize with what is financially sensible. Too many custom upgrades may make your home harder to sell in the future.

Representation in the Transaction

One of the buyers' biggest misconceptions when purchasing new builds is that the builder's sales team works in their best interests. In reality, the builder's sales agents represent the builder, not the buyer. They focus on closing deals for the builder, which may not align with your needs.

• Conflict of interest: You have no independent representation without a real estate agent. The builder's sales representative will prioritize the builder's profits and timelines. Having a REALTOR® ensures you have someone advocating for your best interests.
• Unbiased advice: Your REALTOR® works for you. A real estate agent can provide impartial guidance on the deal, the property, and any issues that may arise, ensuring that your needs and goals are the top priority.

Managing Inspection and Quality Concerns

It's easy to assume that a home will be free of defects or issues because it is brand new. Unfortunately, even new homes can have construction defects, poor quality, or overlooked details. Builders typically offer warranties, but addressing concerns during construction is far easier than fixing them after you've moved in.

• Independent inspections: REALTORS® can recommend third-party inspectors who specialize in new builds. These inspectors can identify issues before they become problems, allowing you to request fixes before closing.
• Pre-delivery inspections: REALTORS® can help coordinate a "pre-delivery inspection" (PDI) with the builder before the final walk through. This inspection addresses any lingering issues before you sign off on the home.

REALTORS® are familiar with what to look for in new construction and can help you push for necessary repairs or corrections.

Financing and Closing Support

Even though builders may offer in-house mortgage services, comparing rates and terms is important to ensure you get the best deal. Your REALTOR® can guide you through the financing options and provide favourable terms.

• Comparison shopping: A real estate agent can help you shop for mortgage options. Shopping around can prevent you from locking into the builder's preferred lender, which may not always offer the most competitive rates.
• Understanding builder incentives: Builders sometimes offer incentives like reduced closing costs or discounted upgrades in exchange for using their preferred lender. Your REALTOR® can help determine whether these incentives are genuinely beneficial or you might be better off looking elsewhere.
• Navigating the closing process: Closing on a new build is often more complex than a resale home, with additional paperwork and potential delays. REALTORS® can help you navigate this process efficiently and avoid last-minute surprises.

Why Not Going Alone Saves Time and Stress

The home-buying process is stressful enough, and new builds come with their own unique set of challenges. A real estate agent helps you stay organized, reduces stress, and saves time.

• Project management: REALTORS® keep track of deadlines, coordinate appointments, and manage communication with the builder, freeing you from the administrative burden.
• Advocacy: If problems arise during construction--delays, unexpected costs, or quality issues--your REALTOR® can handle the situation on your behalf.
• Seamless coordination: Between choosing finishes, arranging inspections, and finalizing your loan, the new build process is full of moving parts. REALTORS® help ensure everything goes smoothly.

Hiring a REALTOR® when shopping for new builds might seem counterintuitive, but their expertise, advocacy, and negotiation skills are invaluable in ensuring you get the best deal and avoid potential pitfalls. Don't go it alone. Working with a real estate agent ensures that you have an expert on your side to make your new home purchase an intelligent and satisfying experience.