Don’t Buy A New Home Alone!
There is something very exciting about purchasing a new home! You don’t have to walk in and make repairs and the home is customized to your tastes. My wife and many other people simply enjoy looking through model homes on the weekends with no intention of making a purchase.
The danger comes when you simply fill out the no obligation “registration card” where you place your name and how you found out about the property. You most likely leave most of spaces blank so that you don’t get spammed and feel no need to let them know that you have a Realtor.
This is mistake number #1. 
You may not have realized that you needed to put your Realtors information down for them to represent you. Or, you may not have an agent.
If you fail to place your agents information on the registration card there is a strong chance that the builder will not allow your agent to come back and represent your interest. Why would they do this???
- It is in the builders best interest that you purchase without the assistance of a professional who knows the market and has proven negotiation skills. You are no match for a builders sales rep who handles multiple offers on a weekly basis.
- Some sales reps receive more pay if there are no agents assisting the purchaser during the transaction.
You may be of the mindset that you do not need an agent to represent you. I am always amazed when people choose to make one of their largest financial decisions without any representation. Here are a few things I would encourage you to consider…
- Builders have a set aside fee to pay agents who sell their homes. In other words, you aren’t paying for the advice of someone who should know the market better than you do. Even if you had to pay for the advice (which you aren’t), wouldn’t it be wiser than possibly living somewhere that isn’t going to meet your needs for the next few years?
- A builder will not discount the home you are purchasing by 3% if you don’t bring an agent. If they say they will, negotiate the price as low as you can and then ask for your 3% off since you don’t have an agent. Builders resist this type of selling because many of their sales come from agents. If it got around that they were in the habit of cutting agents out of deals it would greatly harm their business.
- Not all agents are created equal. Most people who resist professional assistance have had poor experiences in the past. As in any business, there is quality and there is the lack of. If you simply want a chauffeur where you do all of the work and they let you in to the homes then there are plenty of companies out there for you. However, if you are looking for a quality Realtor who can trust and will provide you a service worth their pay then they are out there also.
Working with an agent who…
- Knows the area where you are looking to purchase.
- Knows what recent sales (re-sales and new homes) have been in the neighborhood.
- Knows similar neighborhoods that may interest you.
- Searches for your next home when you are not looking.
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It is advisable to negotiate the price before buying the house. Majority of agents wont tell the exact prices, so better to talk to someone who has already familiar with buying houses