Buying new construction? Get your own agent

Dear Steve,
I own a condo and I'm thinking of upgrading to a newly constructed town house. I realize the need for a real estate agent in selling my place. However, as I look into buying, I keep hearing that a "buyer's agent" should be used for new-construction housing. I have dealt with only the builders so far. Please enlighten me.
-- Geraldine

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Dear Geraldine,
The important thing here is to distinguish between a true "buyer's agent" and the sales people frequently on the site of new construction who actually represent the seller. When considering a new-construction housing purchase, you would be well advised to hire your own agent to represent you.

Though it's not as crucial to use an agent when you are buying a newly built home as it is when you're selling a home or searching for a specific type of residence, there are some important functions that a buyer's agent can perform. First off, the agent may help you negotiate a better price, better terms and better extras or options. He can also check on construction progress and make sure everything you have been promised is being delivered and installed properly, and even send you digital pictures to help you follow along. In addition, he can go with you on the walk-through and even do such things as help you arrange your move.

Make sure you request these services.

Many builders will roll in the buyer's agent fees (usually 2 percent to 3 percent) into the price of the new house, or in your case, town house. Ask the builder if this is the case.

In some instances, you may be asked to pay the commission. Some consumer advocates even believe the buyer should always pay that fee to be fully assured that the best deal is being struck with the builder.

Regardless, buyers are wise to bring their own representation to the table instead of working solely with an exclusive agent working for the builder, in the event there is one.

As an aside, it's very important to make sure you are also dealing with a reputable builder. You might want to check with the Better Business Bureau to make sure there are no unresolved or ongoing complaints lodged against the company.

You might even talk with a few people who have bought from the same builder. If you are not using an agent, you may want to have someone who's knowledgeable about construction check out the workmanship, material, foundation and plumbing of the under-construction town house, if possible.

Best of luck with your decision and your move.

 
-- Posted: May 14, 2005
     

 

 
 

 

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