New Construction is Booming in Indianapolis, why you need a REALTOR®.
New Construction is booming in the area. In 2020 we helped 91 buyers move into a brand-new home. We have extensive knowledge when it comes to helping a client build a new home and love to share the experience with our clients. Something important to know is that when you walk into the model home, you convey to the new home sales counselor that you plan on having a realtor represent you if you decide to build with them. Most time, they will not ask you if you plan to be represented or not. If you don’t tell them upfront about your REALTOR®, they will not allow you to add your agent later. Below are the top reasons why it makes sense to have a real estate agent represent you when building your new home.
1. When you visit a model home, the new homes sales consultant that greets you at the model home, works for the builder. Starting at this point, it’s a great idea to mention that you are working with a REALTOR®. A REALTOR® doesn’t cost you anything. The builder will pay your agent’s sales commission.
2. Your real estate agent is your advocate. Your REALTOR® is obligated to work toward your best interest. Working with a REALTOR® gives you someone in your corner to help protect your interests. The REALTOR® will make sure you know what your rights are, so you understand everything and don’t feel coerced into anything. A REALTOR® will also give you perspective on things that may affect future resale as well.
3. An agent can help you choose the right builder and neighborhood. An experienced REALTOR® can show you what the neighborhood values are currently for resale, which will help give you perspective when building your house, so you’re not necessarily over-building for the neighborhood – at least, not without knowing that you’re doing so.
4. A REALTOR® can help you make the right choices for your budget. New construction can be overwhelming because there is an endless number of options to select. A good REALTOR® can help guide many of your decisions from the lot to the floor plan, and upgrade selections, all while helping you stay within your budget. A REALTOR® can help guide you by making recommendations on items that appeal to a larger number of future buyers if you think you may sell your property in the future. For example, the lot you may be thinking about buying may save you some money upfront, but it may not be the best lot selection when it comes to resale value.
5. Also, when working within your budget, an agent can guide you on what items are better to install now versus items that are easier to improve upon later, such as a basement versus a bonus room or 2-foot bump-outs versus upgraded flooring. REALTORS® will ask the sales agent to point out the home’s base price, what upgrades are included in the model home, and the current price of the model with the upgrades.
6. A REALTOR® will be aware of any builder promotions and may be able to help you help negotiate a better price and terms depending on the market. They have relationships with builders that assist in negotiations and making sure things go smoothly. There is currently less inventory out there for buyers to choose from, and the demand is starting to increase. This trend usually creates a situation where there is a greater demand for new construction as well. So if the builders are busy, they are less likely to want to or be willing to negotiate.
7. When talking to your REALTOR®, it is important to clarify your expectations concerning their presence throughout the process; they can be available to attend the document signing, selection process, the walk-through, and other meetings with the builder. They are a great resource for inspections that the builder does not offer during the process. An agent will guide you through the whole building process if needed. Also, prior to closing, your agent will make sure you have all the information you need. It can sometimes be more difficult to get things accomplished after closing than prior to closing. Your REALTOR® should work with you until they feel like all the “I’s” dotted and the “T’s crossed.
8. Your agent can help with your lender selection. Sometimes, builders have relationships with certain lenders. They may try to offer some incentives so that you will work with that lender. But it’s always a good idea to talk with another recommended lender to make sure what you think you’re getting, you are, in fact, receiving. At the end of the day, you need to compare apples to apples. And the incentive is not always the best option in all cases.
As you can see, hiring a REALTOR® to represent you when purchasing a brand-new home provides many benefits. Remember, if you decide to work with an agent, make sure the next time you stop by a model home to look, notify the sales rep that you’re working with a REALTOR®. Or, ideally, have your agent visit the model home with you.
Posted on February 1st, 2021 by The Stacy Barry Team