Interested in buying new construction? You need a realtor who will represent your side of the deal. Keep reading to find out the pros and cons of using a realtor for new construction.
What Can a Realtor Do for You When Buying New Construction?
You've chosen a construction home and are ready to carry out the purchase. It seems pretty easy, right? You find a builder and get things rolling. But some of you may be wondering “Do I need a realtor and if so, why?”
Here are some reasons why you may need to hire a realtor for your new construction.
1. Realtors will have your best interest in mind.
You really need your own real estate agent when purchasing new construction because your realtor will be your advocate. The builder's agent will be working for the builder's best interest over yours so having someone on your side will help you notice when deals aren’t fair.
When you hire a realtor, they will ensure you get what you need out of the deal — such as the best quality interior design materials for houses and many other things. Realtors will also make sure you're making the best investment by letting you know about the resale value of your newly built property.
2. Realtors will make the negotiations smoother.
A good realtor can negotiate with the builder on your behalf. By hiring your own agent, you can ensure your hard-earned money stays safe and secure. Even if any issue arises during the transaction, realtors can help you find a solution.
3. Realtors help you pick the right builder.
You don't want to end up with a builder whose work doesn't match your preferences. We know it can be challenging to find a builder whose work lines up with your vision. In this case, an experienced realtor who specializes in new home realty can help you. They may suggest some good builders they know based on past clients and they can help you ask the right questions to the candidates you are considering.
4. Realtors recommend the best financial options.
If you want the best mortgage for your new construction as a homebuyer, you should definitely hire a realtor. Your builders may suggest lenders, but they might not work in your favor. A realtor will guide you through the complex process of financing your new home and save you money in the long run.
How to Finance New Home Construction
You need to keep some documents ready before you try to get a loan from a lender. Here is what you need to get a construction loan.
- Good credit score
- Low debt-to-income ratio
- Proof that you can repay the loan
- A down payment amount to apply for the loan
Here are a few tips to finance your new home construction.
- Work with a Licensed Builder: Your lender may want to know where they're putting their money. If a licensed builder oversees building your home, that gives the lenders a clear positive signal.
- Prepare Your Documents: You may need to show the contract you made with the builder to your lender. You’ll want to have this readily accessible.
Do Realtors Charge Homeowners?
During a real estate transaction, the seller pays the realtor fees — about 6% of the purchase price. When you're buying new construction, your builder is responsible for paying the real estate agent's fees. Usually, builders see these fees as a part of their marketing.
We see no reason to forgo a realtor when buying new construction. Even if you don't use a realtor, you won't get a discount from the builder. That's why not hiring a realtor of your own won’t make your deal cheaper.
Finding the Home of Your Dreams with Lancia Homes
Lancia Homes is a hub of professional home builders. Find your desired builder who can guide you through every step of buying your new construction home. Lancia Homes are the best platform to find your preferred builder in your budget. Here you’ll find the most seasoned builders without wasting your time.
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