New Construction - Why You Shouldn't Use the On-Site Agent to Buy Your New House

If you are looking for new homes for sale in the Myrtle Beach or Murrells Inlet area, then selecting an agent like Jake Lee to represent you may be foremost on your mind. However, there are some who argue that you do not need a realtor to represent you when you are purchasing a brand new home. While this is technically true, it is to your great benefit to chose an independent realtor to help you with your new home purchase. There are many reasons not to use the builder's agent, and use your own realtor instead.

  • Make Sure Your Agent Introduces You to the Builder


It ensures that you aren't put into any high-pressure sales tactics on the part of the builder without representation there to help you. Many builder's agents are paid less than traditional realtors and have an incentive to pressure you to sign a contract as soon as possible. Don't let them!

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  • In Most Cases Your Realtor is Free


It is the builder who has a responsibility to pay for the agent that you use, so why not use your own when it's at no cost to you? Typically, the commission is built into the price of the home and you don't get any additional savings by not having a Realtor.

  • Builder's Agents Don't Represent You


A builder's agent does not have your best interests in mind. They have the best interests of the builder in mind. This is important to remember when considering whether to use your own realtor. The builder's agent is there to help the profits of the builder and is not going to disclose anything negative about the house that could hinder its sale. In other words, they are far from impartial. A realtor, on the other hand, has a legal and ethical responsibility to tell you about all of the features of your potential new home, whether they are positive or negative.

  • New Construction Companies May Not Provide Inspections


A thorough inspection is essential in any home purchase. It must be performed by a licensed inspector and be completely impartial. Some people assume that since they are new homes for sale that there won't be anything wrong with them, but this is a risky assumption. On top of that, many builders' agents try to get potential buyers to believe that they don't need an inspection or they have their own inspectors, which are, of course, biased in favor of the builder. Having your own realtor puts you in touch with resources, like inspectors. Your realtor will fight to make sure a home inspector's approval is part of your contract as a condition of the sale.

  • Contingencies to Sell Before Buying are Best Dealt With by Realtors


In some cases, your contract to purchase a new house may contain a contingency to sell your current house before moving into the new one. If this is the case for you, then it is definitely in your best interest to have your own realtor. Not only can your realtor help you to sell your current home, but he/she can also help you to bargain for a good price on your new one. It is very difficult to have much leverage for hard bargaining once you have fully committed to the idea of moving out of your current home.

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  • You May Be Forced to Use the Builder's Lender


Many building companies use the same lender to finance every home they sell in a new development. This is an easy way for the builder to save time and money. However, the lender that the builder has chosen may not be the best lender for you. A seasoned realtor, however, can point out the strengths and weaknesses of many different lenders and steer you in the direction of the ones that have been the most helpful to their previous clients in years past. This is priceless information to have since the last thing you want to do is give your builder a monopoly over which institution you borrow money from.

  • A Good Realtor Can Put You in Touch With a Good Real Estate Attorney


Getting advice from a real estate attorney is something that is recommended before anyone signs a contract to purchase a home, new or otherwise. The good news is, a realtor often knows a good one that they can recommend to you. Having the right attorney can provide many benefits, such as removing contingencies from your contract and making sure that the contract is worded in such a way that it protects the buyer.

  • Your Realtor Helps Ensure the Future Value of Your Home


Many builders have a habit of selling too many properties to investors and thereby creating what are called "rental neighborhoods." Brand new construction can devalue your property in the long run. It is important to know what the comps are for the neighborhood you will be investing in. Knowing the value of the other properties in your area is essential in pricing your home's value and this is something realtors do every day. A good realtor will be able to tell if the builder is overpricing their houses by checking this information against what other homes in the area sell for. Since they are working for you, and not the builder, you can trust their judgment. Knowing this information also keeps your tax burden lower since your property taxes are based on your home's value. Make sure that you get an experienced realtor to make sure the building company isn't trying to rip you off.

  • Deciding if the Upgrades are Worth It


Some builders make most of their profits from the upgrades that they sell. It's not uncommon for a building company to sell the base model of their houses for cost and make their money selling the upgrades. This is where having your own realtor becomes a must. They can tell whether the upgrades add value to the house or not. They can tell you which upgrades are worth the money and which ones aren't. They can also let you know if the builder has structured their contract in such a way as to make you purchase a home with upgrades you may not want or need. Remember, the builder's agent is there to make the builder more money. He may not care if the upgrades benefit you.

As you can see, choosing a realtor for yourself is a win-win situation. The Myrtle Beach and Murrells Inlet areas abound with great opportunities for a new home purchase. Make sure you make a wise choice and use your own realtor when looking to purchase your dream home.