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How to Get Ahead in New Construction

Posted by Reilly Realtors on July 30, 2012 at 6:40 PM

By Andrew Hill @ austinhomelistings.com

What’s the secret to getting a good deal on new construction? Is it waiting until the market is just right? Maybe. Is it knowing the lesser-known areas to buy a home? Perhaps. But more important than all of the other small facts and gimmicks to getting a good deal on a newly built home is the advantage you have when hiring a Realtor to help you buy new. I know that may sound a bit backwards, but hear me out. Having your own Realtorbrings a range of skills and knowledge to the transaction that the average, and even the above average, homebuyer simply doesn’t have. And have you ever considered who actually foots the bill for Realtors when buying new?

It may come as a surprise, but in nearly every new home transaction, the builder is the one responsible for paying for both his agent and yours. It may sound hard to believe, but such is the case in most situations. Why does the builder have to pay for the buyer’s agent as well as the listing agent? It’s to help protect buyers like you who want to get the best deal on a home and would potentially skip a Realtor in an effort to save on the commission costs. So the truth is, you already have a prepaid expert who is ready to help you.

Unfortunately, when certain people hear that the builder already pays for their Realtor, they jump to another incorrect conclusion. What I mean is, after hearing that their builder will pay for their Realtor, some buyers approach the builder without an agent of their own, expecting that the builder will lower their price out of gratitude. The buyer assumes that because the builder no longer has to pay two commissions, he will deduct the commission amount from the price of the new home. But what every buyer needs to remember is that this builder has tirelessly worked on this home and is not about to cut the price simply because it would be in the best interest of the buyer. That’s not to say that your builder may not be a friendly person, it’s simply business.

Another common mistake that homebuyers make is working directly with the listing agent. Although he/she is a licensed expert, that does not mean they are working for you and your best interests. Remember, this agent has been hired to get the best deal for the builder, so you cannot expect anything different, whether you have representation or not.

With this new information, what will your next move be? I’d suggest hiring a Realtor! After all, in this situation, an agent’s skills are truly a use them or lose them commodity. So, whether you’re planning on buying new or resale, be sure to contact Broker LA for quality real estate service.

Categories: Real Estate Informational Posts

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