construction a Home - Do You for real Need a Realtor?

So, if you're having a home built, what are the consequences of not using a Realtor? I learned from experience, and I want to share my knowledge with others. Currently, I am a Realtor, so you may think that I'm biased. However in 1998 (prior to becoming an Agent), just like many of you, I didn't use a Realtor when I had my 1st home built. I view the man in the model home would look out for my best interests. Below are some real life examples explaining what can happen if you don't hire a Realtor to record you.

1. Pay too much for the house - Realtors are in constant touch with builders about special promotions that are going on. You may not believe this. But, I know a buyer that went to a builder, and the sales agent in the model home quoted a high price. However, the Realtor knew that the manufacturer was contribution a promotion, and the price was genuinely supposed to be a lot less. If the Realtor wasn't there, the home buyer would have overpaid for the house.

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2. Negotiate the ageement - One thing to all the time remember is that the sales agent in the model represents the builder, not you (the buyer). Therefore, their job is to negotiate the ageement in the best interests of the builder. If you hire a Realtor/Buyer's Agent, it's the Realtor's job to negotiate the ageement for your best interests. In other words, the Realtor will negotiate the following: sales price, earnest money deposit, down cost assistance, financing options, etc. I know buyers who were told they had to use the builder's mortgage business even though that mortgage business didn't have the best loan programs. So, the buyers wound up getting a higher interest rate. They were told that if they didn't use the builder's company, they wouldn't receive the special incentives (like free upgrades, manufacturer paid conclusion costs, etc). A Realtor can negotiate for you, so you don't have to use the builder's lender.

3. Incorrect Options - building a home takes some months. Everyone's human, and we all make mistakes. Sometimes, builders make mistakes and put the wrong options in your house. When I had my home built, the manufacturer put in the wrong countertops. In someone else buyers' house, the manufacturer put in the wrong bathtub, the wrong light fixtures, and there was a lot of standing water on the lot. Your Realtor will monitor the building progress, and the Realtor will forewarn the manufacturer immediately if a mistake is made.

4. Incorrect Paperwork at conclusion - Realtors know what type of paperwork should be at the closing. I know a buyer that had a home built, and during the building process, the paperwork changed. Specifically, the sales price was lowered. However, when they got to the Closing, all the former documents were there with the higher price. No one could find the new paperwork. The Realtor was the only man who had it. So, without the Realtor, the buyer would have paid too much for the house.

5. Incorrect Settlement Statement - Realtors go over this statement in detail to make sure it's accurate. If you've never heard of a Settlement Statement, that's the form that you're given at the Closing. It lists all your conclusion costs, and it states whether or not you have to pay money or get money back at closing. Well, I can't count the estimate of buyers I know that encountered incorrect Settlement Statements. For example, at one of client's closings, the Settlement Statement showed that my client had to pay over 0, but in actuality, he didn't have to pay anything. Luckily, I was there, and I noticed that one of the fees on the statement was incorrect.

Now, you know the benefits of using a Realtor even if you're having a new home built. Now, you don't have to learn the hard way. The best thing about hiring a Realtor/Buyer's Agent is that it's Free (in most states). Why would you not want man to look out for your best interests (for Free)?

construction a Home - Do You for real Need a Realtor?

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