New home buyers don’t want a used house when only a new home will do. They don’t want to inherit somebody else’s worn carpeting, personal taste in kitchen appliances or look at some kid’s initials scrawled into once-wet cement that they didn’t put there. The home must be brand spankin’ new, fresh and clean without so much as a finger print on the walls.
If this describes you, and you have always fantasized about buying a new home of your dreams, here are a few tips that can help you to protect yourself — to make the process a pleasant experience.
Hire Your Own Agent
- The builder’s sales agents are paid to represent the builder, regardless of what they may tell you. Many will use high pressure tactics to persuade you to sign the contract. Due to the high volume nature of brand new home sales, lots of builder’s agents are paid less than a traditional commission; some earn a salary plus incentives, so turnover is important to their livelihood.
- Hire a Buyer’s Agent to represent you. Most of the time, your agent will be paid by the seller, but sometimes the responsibility for the agent’s fee is open for discussion. Even if you have to directly pay your agent, you can probably add that fee to the sales price, and it would be worth it because a good negotiatingbuyer’s agent can save you thousands more than the commission.
- Your own agent will represent you, be your fiduciary and is required to disclose the positives as well as the negatives about the transaction. Builder’s agents don’t discuss drawbacks.
- If your contract contains a contingency to sell your existing home before buying, again, hire your own seller’s agent to list your home. Be aware that buying before selling is not always in your best interest because hard bargaining goes out the window when you’ve emotionally moved out of your home.
Read more about new home buyers at thebalance.com