Building a new home can be a good solution when none of the houses on the current market meet expectations or requirements. Custom-built homes allow buyers to design a space that meets their needs while choosing design options to make the home more personal. Although building a home can be fun, it can also be stressful due to all the decisions that need made and making sure projects stay within the desired time frame.
While it may not seem customary to have a realtor during the new-construction process, it can actually save the homebuilder money. Here are a few ways in which a realtor can help:
- Cost – Newly built homes can cost as much as 30 percent or more above the average price of a resale home. During the home-building process, it is easy to go over budget. The price can increase due to material changes, design upgrades or a number of other factors, but the use of a realtor can help home builders keep the budget in check and identify areas where value can be reasonably added.
- The builder pays commission – During a traditional real estate transaction, it is customary for the seller to pay the commission for a realtor, and this applies to newly-built homes too. The builder is considered the seller; therefore, they would be the one paying the buyer’s agent in the end.
- Financing – It is not uncommon for builders to recommend their own financing partners to manage a buyer’s loan, and although this may be convenient, it does not guarantee the buyer the best rate. Realtors have connections with multiple financial institutions and can help buyers find a loan service that best suits their needs.
- Upgrades – Many realtors have relationships with home builders and can negotiate upgrades into the final cost of the home. For example, paint colors, cabinet or countertop options and exterior design styles can be included in the contract.
- Home inspection – A home inspection is just as important for new construction as it is for resale homes. Builders are unlikely to suggest an inspection, so it is up to the buyer to schedule one before closing. The inspection can uncover areas where materials may not have been installed properly or work is incomplete.
The trick to using a realtor during the home-building process is to bring the realtor to the initial visit to the neighborhood or spec home. Once a buyer has committed to the design process it’s not always possible to bring in a realtor. Using the expert services of a realtor who works with homebuilders is a great way to save money, stay within the budget and have someone looking out for the buyer’s best interests.