Jun. 13, 2006 - New Construction Homes

Buying a new home?  New Construction is exciting!  The builders are experts in marketing, staging their models and training their sales people.  Why should I waste my time or insult my intelligence with a Buyer's Agent?  I know what I want and I know what is best for me and my family!

This is the sentiment of many new home buyers.  Let's discuss what is best for the builder and what is best for the buyer. 

Saving money:  The builder already has the commission fixed in his price.  Actually the price of the home is fixed by market value.  If a builder can get $10,000 more for his home, he will.  The builder can not just give you $10,000 and not the next person.  This will ultimately depreciate the remainder of his homes.  He would be destoying his own business.  The builder sells for market value.

But Rick: builders offer free discounts all the time!  True, but there is a reason.  Early in a development the builder frequently offers discounts.  The builder offers these incentives to get their development recognized.  All in the marketing plan.  The downside to being early is you will have a very difficult time selling your home any time soon.  First you will be competing with the builder and secondly, you are living in a construction zone.  There are other reasons for incentives and we can discuss those on future blogs.

Builder Marketing:  The employees of the builder will provide you all of the positive data required for you to purchase their product.  You will be impressed from their trained sales staff.  Is that what is best for you and your family?

Buyer's Agency:  A good Buyer's Agent will provide you invaluable information about the state of the development including resale values.  A Buyer's Agent has a feduciary responsibility to protect your investment; not the investment of the builder.  I know what is overpriced, what costs are normal and what is inflated.  My job is to do what is in your best interest.  I value the happiness of you and you family and that is what should come first.

I appreciate the work of the builders and they have their job down to a science.  It is an admirable business model.  But what is best for the builder may not be what is best for you and yours.

Looking for a new home:  Hire a Buyer's Agent.  The Buyer's Agent is of no cost to you and will help protect one of the largest investments you will ever make.