1. In Colorado Builder Sales Representatives Are Not Required to Have a Real Estate License.
The sales rep works for the builder, as an employee, and their job is to look out for the best interest of the builder. Builders depend on Realtors to bring buyers and sell their homes. Therefore, they build in the buyer’s agent commission to the base price of the home and they do not discount it if you do not have your own buyer’s agent.
The sales reps are valuable in knowing their product inside and out. What’s available, what’s the build time, the cost of upgrades, the lot premiums, the building standards of the project and the features and benefits of their particular builder. They are a great resource and we love working with them. Remember, they represent and work for the builder, not you.
2. Your Realtor is Your Advocate and Licensed by the State to Uphold Professional Standards and Ethics.
They will help you understand the lengthy builder contracts (60+ pages on average), your rights, the builder’s rights and the building process. Realtors are required to complete 24 hours of continuing education every two years with mandatory annual classes that keep them up to date on state laws, rules and regulations.
3. Hiring a Realtor Doesn’t Cost You Anything.
Remember the Builder has already factored this fee into the base price of the home and they are not going to discount it. So why wouldn’t you hire a Realtor to be on your side? If you hire a Realtor who is experienced selling new homes, they will ultimately save you a lot of time.
4. Your Realtor Will Help You Choose The Right Builder and Neighborhood.
Unless you are a fan of …. driving miles and miles on a Saturday or Sunday, visiting builder after builder, that may or may not be in your price range, just for fun….
A Realtor will save you a lot of wasted hours and help you zero in on the right neighborhood quickly. Many builders advertise their prices as “Starting in the low $400,000’s”, which usually means they have one very small home priced around $425,000 and the rest of their models are well into the $480,000 - $520,000 range.
5. Your Realtor Will Help You Make The Right Choices For Your Budget.
You really want new construction and you had your heart set on a particular neighborhood. Then you find out that you cannot afford to live there. Working with an experienced new home Realtor can help you determine if the neighborhood is really out of your budget. Maybe there is another builder that has a smaller product that you were unaware of or maybe you need to make a plan on how you can achieve your goal in a reasonable timeframe. Do you need to save more for a downpayment, get a better paying job or payoff debt? This is where a Realtor can counsel you to help you achieve your dreams.
6. Your Realtor Will Help You Pick The Right Lot, The Right Floor Plan and the Right Upgrades.
This is an important one, if you have the choices. Some floor plans will re-sell better than others, as well as lots, as well as upgrades and color choices. An experienced Realtor can guide you in these choices so that you make the smartest choices to protect your investment.
Most model homes are decked out with high end upgrades like flooring and counters, which you might expect. What you might not expect is that the upstairs laundry room is an option, i.e., more money; the huge island in the kitchen is an option, and so on. Options and upgrades are not always just in the finishes, it could also include the way the home is built.
Your Realtor will help you understand what is included or not. Most importantly help you imagine the home within your budget and for the best resale value.
7. Your Realtor Will Help You Negotiate Upgrades, Closing Costs, Lot Premiums and Sometimes Even The Price.
An experienced new home Realtor will often have the knowledge about a particular community or builder that can save you thousands of dollars. New construction is very different from a resale home, because the builders have no emotional attachment to the home. They are numbers, bottom line driven.
There are a few key factors that an experienced agent knows to look for that will expose the possibility of negotiating with the builder.
8. Your Realtor Will Guide You Through The Building Process.
Buying new construction is a fun experience! It’s exciting to see the foundation being poured, then the framing go up, the siding goes on and now it really looks like a home (from the outside). You walk around the inside and you have no idea how to determine which room is which. It looks very different in the construction phase. Sometimes buyers will start to freak out at this point.
Your Realtor can walk you through the property and help you envision the final home. It is reassuring to have someone who has seen a thousand homes in this condition, help you understand the process. On top of the visual aspect, there are building permits, inspections and deadlines that the builder is dealing with. There is quality control to verify that the home is being built to your specific contract.
Bottom line, there are hundreds of things that must happen from the time you sign the contract until you open the front door to your new home. An experienced Realtor will help you understand the process.
9. What Happens If You Have a House to Sell?
This last one can throw a wrench into your plan of buying new construction. It doesn’t have to. Your Realtor can help you strategize and create the perfect plan for your family to make this difficult transaction a little easier. Every builder, in every community will have a different set of regulations when it comes to selling your home.
By choosing to work with a Realtor you will know what those regulations are before you go and fall in love with your new home. Meeting with a Realtor first will save you hours or time and frustration.
There are so many people involved in the building of your new home. You can rest assured that you have someone looking out for you and your family when you hire a Realtor.
As you have read, hiring a Realtor to represent you when you purchase new construction provides many benefits to you. You have an advocate to help you navigate the lengthy process. And it’s FREE!
IMPORTANT NOTE: Should you decide to hire a Realtor to help you find your new home, many builders require that the Realtor is with you on your first visit. So unless you like driving around for fun, save yourself some time and call a Realtor today.
Andy and Josie Apodaca offer over 42 years combined experience as Realtors. They have sold hundreds of new construction homes throughout all of the Denver Metro area. Andy and Josie have personally owned 39 properties, a hand full of new construction homes and many fix and flips. They have the experience in construction that most Realtors do not. Call 303-880-1167 to schedule a complimentary strategy session with Andy and Josie today.