Why use a Realtor to buy a home from a builder? Buying a brand new home? Buying pre-construction? Who is protecting whom?
Who is protecting your interests when you buy from a builder?
The advantages of having a Realtor help you purchase a new home are the same as those for purchasing a resale home.
Knowledge of the market
Help find the perfect home quickly,
Expertise in contract writing/negotiation,
Closing assistance.
Builders have professional representatives, including licensed and unlicensed salespersons, who watch out for their needs. Who will protect you and advocate for your needs?
Lawyers cannot represent both sides of a transaction for a reason!
Your interests need protection when you enter a legal contract for a semi-custom or build-to-suit home. These transactions are complex, and the contract details must be exact to protect you!
Is there any advantage to not using a Realtor to purchase a new home?
No. There is no financial advantage to buying directly from the builder. Most ethical builders, including many in London, Ontario, have a “single-price” policy. You pay the same price whether a realtor represents your interest or not. Like most resales, the Seller pays the Realtor’s fee. There is no extra cost to have an experienced Realtor help you.
Legal Contracts Builders Use Are Drafted by Their Law Firm!
Who do you think the contract favours or is biased for?
Do you know what you want and what you're looking for during the pre-delivery walkthrough of your new home? If something is wrong, what can you do other than receive promises?
If a condominium, you should know:
How many are sold now?
Are there rental units?
Sold to investors?
Buying a home from a builder is much more complicated and time-consuming than buying a resale. Experience working with builders and accessing a database of subdivision information, floor plans, and related details is a must. Familiarity with new-home warranties and builders’ purchase contracts is essential.
Caution– 99% of builders insist your Realtor accompany you on your first visit to the builder’s sales office or model home. They will NOT PAY your representative’s fee!
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