The extensive new home inventory and construction knowledge of an experienced
REALTOR® can be invaluable to you throughout your search and building process.
In addition to the hundreds of locations and floor plans that builders offer,
there are also many other considerations, which should not be overlooked when
buying a new home.
One of the most important things to remember is that the on-site salesperson,
who legally represents the builder, (or the actual builder, if you are buying
a custom home) may fail to mention all the facts that may be critical to your
buying decision. The future location of roadways, high density zoning, non-conforming
use of adjacent properties, financial stability of the builder, aircraft flight
patterns and the construction quality of one builder to another should be major
considerations in your decision making process. A knowledgeable broker will,
however, readily disclose these and many other important considerations to you.
Buyers sometimes believe they may have a contract pricing advantage by not using
a broker. The major reason builders will not negotiate a lower price with a
buyer who is not represented by a broker, is that the latest sales prices become
the appraised values for their future home sales. If they discount the price
on a home by the amount of the broker fee and pass the savings on to the buyer,
the lower price would become a comparable sales value for future sales of the
same model. They simply cannot afford to have a low appraisal lower the value
of their future home sales.
Whenever we have had skeptical buyers, we often suggest they simply call five
or six builders to inquire if they can buy for less without a broker representing
them. In all cases, clients have reported that builders had no flexibility in
their pricing.
THE NEGOTIATION PROCESS:
First, a seasoned REALTOR® knows from past dealings how the builder will respond to a low offer and therefore, exactly how low of an offer is possible to ensure you of the most successful negotiation process. An experienced REALTOR® also has developed and honed negotiation skills throughout the years, which can be used to benefit you.
An Experienced Broker Will Also Know Many Other Invaluable Negotiating Factors Such As:
a) How many homes does the builder have in inventory versus the number the builder normally carries?
b) What are the projected completion dates of the builder's current inventory?
c) How many new building permits has the builder applied for in the past 30 to 60 days?
d) Is the builder financially extended? (If so, there will likely be more cooperation
with an even lower offer.)
Having this type of information significantly improves your negotiating power
and assures you the lowest purchase price possible.
In summary, a seasoned broker can assist you free of charge, and offer considerable
first hand knowledge in these and many other areas that can benefit you. These
include:
* Local market knowledge of neighborhood trends;
* School systems impact;
* Local government influences;
* Local market knowledge of future developments, filings, and building sites
not yet announced to the public;
* Results of past contract negotiations with your builder;
* Reputation of various builders;
* Selection of a custom home builder who will be most compatible with you and
your needs;
* Present and planned home inventory considerations;
* Financial issues, including where to obtain the lowest cost financing;
* Knowledge of differences in builder product quality;
* Positive and negative aspects of selected building sites;
* Obtaining the lowest cost financing;
*Assistance with builder-walk through inspections.
