Monday, April 6, 2009

Should I use a realtor when purchasing a new home from a builder?

A lot of buyers are unaware that they can have their Realtor represent then for a new construction.Another common Myth that the buyers have is that Builders offer lower price if the buyer buys directly rather than having a realtor in the deal. This is totally a Myth. Infact a realtor might be able to get you a better price than what you can negotiate with the builder. All builders have a realtor commission built into every home rather or not you use a realtor!! It is important to have a realtor that is representing you as the buyer.Here are a few advantages of using a realtor when shopping for new homes:
Purchase contract is a legal document and most of the buyers never pay close attention to what they are signing. There is no standard contract for new construction. Every builder has their own version of purchase contract. The buyers realize a problem only after they get into a dispute during the transaction. A realtor would explain the contract to you upfront and be able to negotiate changes to the contract to your advantage.Buyer is buying a house that will be delivered in future ( A few months later). Most of the buyers go directly to the builder and try to negotiate from the list price based on guess work and end up paying to the advantage of the builder. A realtor has more insight into what is going on in the specific market and can write up a contract that would protect you in a falling market when you are ready to takeover/close.The builders usually keep a considerable amount as upfront deposit. If you ever get into a dispute situation you have the Realtor as your professional advisor ro guide you through the situation and possibly resolve the situation by negotiating with the builder. It is always your Realtor's priority to protect your deposit.The sales offices of builders are staffed with "realtors/Real estate Agents" selling houses for them. If the builder is using a realtor/Agent to sell. Why not you ?Last but not the least. It does not cost you anything to have a Realtor represent you. It is time the buyers start realizing this free benefit and use it to their advantage.

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