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Building your dream home is an exciting prospect but comes with challenges. Real estate agents specializing in new construction can help buyers negotiate with builders on items like earnest money, deadlines, and warranty claims.
To help you narrow down your choice of home builders, it’s essential to consider their reputation and past client satisfaction levels. This can be determined by reviewing their online reviews and testimonials.
Look for Experience
A broker must have experience in new construction real estate. This means they’ll have sold properties within the developer’s community and understand their work preferences. It also helps if the brokerage has worked with builders with different styles, as some buyers are more comfortable with certain homes.
In addition, experienced brokers will be familiar with the nuances of builder contracts and can help clarify language that could be misleading. They may also be able to recommend lenders offering better terms on the loan than the builder’s preferred lender, which can save buyers thousands in closing costs.
Finally, a good home builder sales brokerage will be well-versed in cultivating positive post-sale experiences for their clients. This includes providing warranty coverage that goes above and beyond what’s typically offered by a builder. It also means ensuring that all parties involved agree regarding expectations and deadlines.
Look for a Reputation
As a real estate agent, it’s your job to know all the key players in the industry. From developers to contractors, lenders to designers, homebuyers to builders, it’s crucial that you align yourself with the right people so both you and your client can come out winners.
This includes vetting the reputation of the broker and the builder they work with. A reputable broker will have a good relationship with the builder and can often help negotiate fees, warranties, upgrades, and more. They will also be able to help guide their clients through purchasing a new home, helping them make an informed decision.
Additionally, a reputable broker will clearly understand the builder’s procuring policy, a standard contract in the new construction industry that outlines details about how and when brokers earn commission. If they need help navigating the policy, this could lead to conflicts between the builder and broker.
Look for Value
A real estate agent with experience with new construction can help you negotiate financial details, timelines, and contractual issues. Whether looking for a production home or semi-custom construction, having an agent with new build experience will significantly benefit your search.
Be sure to research builders thoroughly and visit their model homes. Talk with neighbors about their experiences, and check the builder’s website and public records for any lawsuits. It’s also essential to look beyond the builder’s preferred mortgage lenders and get quotes from other lenders before selecting your loan. This will allow you to bargain from a position of strength, and you may be surprised at how willing the builders are to negotiate if you can find a close-out sale; that can be an excellent opportunity to negotiate, as the builder is trying to move inventory to meet quotas. Also, negotiating on extras, such as upgraded countertops and appliances, can save you money in the long run.
Look for a Plan
When selling new construction, it’s critical to know the players – including the homebuilder’s sales representatives, lawyers, and designers. Promoting yourself as a valuable player with marketing materials showcasing your sales, education, designations, and associations will give you the edge to make the builder’s team notice. Follow-up calls that probe the developer’s goals and how you can help them get the best return on their investment is also essential.
Some buyers think it’s easier to go straight through the builder’s agent for representation. However, that can be risky as they represent the builder’s interests and are unlikely to advocate on your behalf when an issue arises. Additionally, brokers are familiar with home builders’ contracts and can help you spot language that could lead to cost escalation down the line. They’re also familiar with local lenders and may be able to recommend one who can offer better loan terms than the builder’s preferred lender.
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