Why Representation in New Construction is ALWAYS a Great Idea

I was sitting at my desk the other day when a multi-time, repeat client of mine called and asked if I could assist him with cleaning up a mess on his year old custom built home.  

While we are always happy and willing to assist our clients at any and all times with any and all issues pertaining to problems they are having in their real estate endeavors; our limitations were exercised on this one.  Why, you may ask?  Because while we assisted them with the sale of their previous home we had no involvement in the purchase or process of their new home.  

This particular client was building custom home with a home builder that they had developed a personal relationship with.  Therefore, they assumed they could just go through the builder from start to finish with everything from executing the contract to delivering a perfectly built home at completion.  And so many households do this every single year.  What could go wrong, right?  Well oftentimes nothing goes wrong and everything goes off without a hitch.  It’s when something goes vitally wrong and you have no idea what direction to turn that you wish you had somebody representing YOUR best interests in the process to assist you with “what do we do now”. 

What many consumers don’t realize is that in the sale price of their new construction home there is often already a built in real estate cost for the representation that the builder anticipates the buyer will come with.  Their agent.  The built in cost that they have rolled in to your new build may revolve around a flat rate or a percentage.  If never asked, you may never realize that this number and this benefit was already included in the base price you were paying.

So what exactly can your agent do for you in your new construction adventure?  Here we will explore a high level service and benefit that you will be greatly rewarded with when enlisting your favorite real estate agent to assist you with your new build:

1. Legally binding contract that protects your interests in the transaction - Many builders have their own contract template.  Buried in this template may be multiple different line items intended to protect the builder from uncertainty.  But what about your uncertainty?  What protects your best interests should a dispute arise?  The MN and ND New Construction Purchase Agreement that your agent will prepare for you will ensure clear, transparent communication and agreements that clearly defines how all different areas of potential issue will be handled.

2. Guidance, Education, and Assistance - Your agent should be able to assist you in understanding the contracts, blueprints, design layout, process, procedures, and one of my favorite parts… SELECTIONS!! New construction is far from a one-size-fits-all adventure!  If you are unfamiliar with this process it is likely that you have no idea that you can ask for an abundance of products, finishes, and fixtures that are outside of the design center norms.  It’s also likely that you might be unfamiliar with how the pricing works when you are trying to incorporate some of these different pieces into your new home.  And believe it or not, there is always room for negotiating power that you can bring with your agent in the final prices and product.  A seasoned agent can help you to understand what is best to ask for, negotiate around, and possible for a win/win between you and your builder!

A great agent supporting you along your real estate journey in new construction is nothing less than a surefire way to make sure you have as much power, support, and knowledge behind you as what the builder is coming to the table with for themselves.

Is building a new home in your future?  Feel free to give us or your current real estate agent a call today to talk through your wants, needs, desires, and next steps!