A common question that I hear from buyers that are looking for a new home is “Do I really need my own agent if I am purchasing a new home from a builder?” It is a common thought that it isn’t like a traditional transaction and the new home sales person is there to help them. It is true that most new home sales people are very helpful, but they work directly for the builder, by law they cannot represent the buyer too. In most cases builders already have compensation worked out for buyer’s agents, and it will not cost the buyer any more to have one. Below are a list of items that having your own agent can benefit you while you’re purchasing new!
• Most builders use their own contracts. A buyer’s agent can review and advise if there is anything out of the ordinary that an attorney should review.
• During the building process there will be several meetings and inspections of your new home. Agents have been through these meetings many times and know what to expect, and know if something isn’t being handled correctly.
• Buyer’s agents that sell new homes will know what all the builders in the area are offering. This is beneficial when you are negotiating, to ensure you are getting the Best Deal!
• Do you need a home inspector? An agent will be able to tell you if this is necessary, and if it is they can know which local inspectors specialize in this area.
• Is there special financing needed to purchase new. Some builders require large nonrefundable deposits to build, some require the purchaser to get the construction loan.
• How much Earnest Money Deposit should you put down? Is it more or less than a traditional sale?
• Are there any hidden costs, fees with building new? Is it more or less than buying a resale?
Why should you chose ME as your buyer’s agent? The answer is Experience. I spent over 13 years as a new home builders myself. I am still a licensed general contractor. I know what I am looking at during the inspections and can help explain the process, from start to finish. I have also worked directly for the builders as a new homes sale person. I have been on the other side representing the builder and I know their process, how they operate, and how to negotiate with them. I have earned the highly regarded CSP Designation (Certified New Home Professional) from the National Association of Home Builders.
If you are considering the largest investment of your life; a new home. Give me a call, I will give you the insight to make the best decisions throughout the process.
In the Past few years we have dealt with an oversupply of homes. So many foreclosures and short sales, at any given time you could find a dozen homes that fit your criteria; but that has all changed. I found this great article at Inman News that explains why this is happening. Check it out, Clink link at the bottom for the full article. Thanks Aaron
An excellent report published by Zillow’s Svenja Gudell documents the large number of U.S. homeowners who are still underwater, owing more on their mortgages than their homes are worth. While down from the peak of 31.4 percent in 2012, 18.8 percent of homeowners are in a negative equity positionEqually problematic, as the report points out, is that many homeowners who have escaped from being underwater are barely treading water: 36.9 percent of homeowners with a mortgage are “effectively underwater,” according to Zillow, since they simply don’t have enough equity in their homes to consider selling the property and moving up to a new, larger house.
New-home construction hasn’t recovered
New-home inventory has improved marginally since bottoming out in 2012, but is still nearly at the lowest levels in the 40 years that this information has been reported, according to NAHB data compiled by Calculated Risk.
Current inventory levels are roughly half of what there would be normally, and about a third of what they were at the peak in early 2007. Builders overbuilt as the housing boom passed its peak, and stopped building almost entirely when faced with the daunting task of trying to compete with their own recently built inventory that had been foreclosed on and was now available to buyers at a significant discount. Builders shifted their strategy towards building fewer new homes, but larger and more expensive ones.
Foreclosure activity has slowed
Distressed homes made up a significant part of the home sales inventory, peaking with the sale of over 1 million lender-owned properties in 2010. But foreclosure activity has been slowing down for the past few years.
A recent report from RealtyTrac notes that foreclosure starts have declined for 22 consecutive months. Foreclosure activity, while still between two to three times higher than normal, is at its lowest levels since 2006, and running at about 50 percent of where it was at the peak.