How does the process work if I want to build a home?
The process for building a home is very similar to an existing home purchase. If you are thinking of the possibility of building, here are a few things to keep in mind:
- Having a buyer’s agent familiar with the builders process is very important to bring to preliminary talks with any builder.
Builder’s agents are representing the builder first and foremost and will always have the builder’s best interest in mind, not necessarily the buyer’s.
- Builders will tell you about possible incentives to build and many times the buyer’s agent will then negotiate further “deals”.
- Process can be very different between builders, ask for recommendations who we recommend.
- It does not cost you anything extra to have a buyer’s agent representing you.
- The Pomerleau Team is the premier choice in representation for buyers looking to build a new home. Having a strong representative on your side with your best interest in mind can make all the difference.
Builder sales reps represent the builder:
Often builders have their own agents on site to answer questions, assist people who walk in, and ultimately help with a purchase. Builder reps provide a valuable service: They can explain differences between models and floor plans and share information about financing options, upgrades and specials. But it’s important to remember that builder reps represent the builder, as they are contractually obligated to do.
“Realtors® are trusted resources for real estate information and can help home buyers navigate the increasingly complex home-buying process,” said National Association of Realtors® President Gary Thomas. “The buyer agency agreement ensures the buyer that his or her Realtor® will represent the interests of the buyer alone and not the seller.”
One of the most important considerations for any buyer is fiduciary responsibility. When you retain the services of a Realtor®, their responsibility is to you. That means you have an expert who is looking out for your best financial interests and an expert who’s contractually obligated to protect you. A Realtor® can help you navigate the new-construction contract, help you understand how specific clauses, riders and upgrade options, and make sure you know what you need to before you sign on the dotted line.
Negotiating a better deal:
Finding the right model and picking your upgrades is the fun part. Once you’re ready to sign the contract, a Realtor® can work on your behalf to negotiate the terms, from upgrade options to financing and closing costs. In addition, a Realtor® can present other options for financing or might be able to work with the builder’s lender directly to get you a better rate for your mortgage.
Shepherding your new home to closing:
Signing a contract with a builder is just the beginning. You must also line up financing, work with title companies and attend numerous inspections
throughout the construction. A Realtor® can manage that process and can accompany you on inspections to ensure you’re not missing anything at each construction milestone.