If you’re looking at buying a brand new home, you may think you don’t need a REALTOR. In fact, you may even think that buying a new construction home without a real estate agent will save you money. However, new home communities usually have a marketing budget for the entire community and REALTOR fees are paid out of this budget. This money has already been allocated by the developer whether you choose to have representation or not. Using a real estate agent to help you purchase a home in a new construction community will actually save you money and make sure your best interests are protected.
You may also think that the sales agent at the community is working for you. This is not true! The sales agent works for the builder and is looking to represent the builders best interests. He or she may be very nice, incredibly friendly, and offer you snacks and drinks while you peruse their inventory; however, at the end of the day, the sales agent is looking out for the builder’s best interest.
The Texas standardized resale contract is written to protect the buyer. There are more than twenty “buyer outs” or ways the buyer can get out of this contract and still get their earnest money back. However, new home communities almost always have their own builder contract, and as you might have guessed, this contract is designed to protect the builder’s best interest. It’s important that you have a professional by your side that can make sure you know exactly what you are signing.
When you sign a contract to purchase a brand new home, the sales agent is usually going to offer incentives for using their lender and or title company. A good real estate professional will recommend that you look into their preferred lender option, but also, check in with a few others too. Going with the builder’s recommended lender may offer you $2 K off the sales price, but what if his interest rate is a point or two higher than another lender’s or the origination fees are so high it’s criminal. It’s important to check the fine print on these “incentives” and make sure they are really helping your bottom line.
Throughout the building process, a REALTOR, has one job - to look out for your best interests. Whether that’s making sure you’re informed of the current timeline, pointing out imperfections that need to be addressed, or recommending an inspector - a REALTOR ensures peace of mind when buying a home.
Thinking about buying a new construction home in the Austin area? Contact me today to start looking at communities that meet your needs.
Erika Rae Albert
Sharing my Austin real estate updates, home owner tips, & more.