The first thing you need to understand when you walk into a Builder’s Show Home Office is that the person who greets you is employed by the builder and is there to primarily represent the builder in the purchase of a home.
If you choose to have your own Realtor, he/she will be there to represent and advocate for your best interest and will not be tied to a builder as is the builder’s representative. Builders use their own unique contracts prepared by their attorneys, warranties, and how well they stand behind them, vary from builder to builder. In a seller’s market like we have right now, they most likely are not willing to negotiate on the price of the home.
If you have your own Realtor, however, it is possible that there may be incentives such as upgrades or landscaping that are offered, but not mentioned by the builder, unless they are asked about them. A good Realtor will be aware of what other buyers have been able to negotiate from the builder when purchasing and will push for these same incentives for you.
Identifying and Avoiding Faulty Construction before You Close
There is a real shortage of qualified people to build homes right now and quality can become an issue because of this. A good Realtor can help you monitor the construction of the home and arrange to have it inspected – this will identify problems and get them fixed before you close and move in. Finally, if there is a problem after closing, the Realtor can be there for you to make sure the builder stays in touch with you so problems associated with the warranty are not ignored. Builders do not want Realtors sharing stories about poor builder performance with other Realtors.
Northern Colorado Builder Open Houses and Your Realtor
Make sure that you have an agency agreement with a Realtor before you begin visiting Builder’s Open Houses and, when you sign in, it is extremely important for you to indicate who the Realtor is that will represent you when an offer is made on a home. If you don’t do this the builder may baulk at allowing you representation by an “outside” Realtor. From our experience, the cost of the home remains the same for a buyer whether they have their own Realtor or not – if they do not – the money that would have been spent on your representative simply stays with the builder and you do not have the protection of an advocate for your best interest. By the way, the builder pays for your Realtor’s compensation, not you.
The market is getting tighter and prices are guaranteed to rise, so it is imperative that you understand that time is of the essence in terms of getting started on your home search. Please contact us and we will be glad to help you prepare to begin the process of buying a new built home.