Published June 21, 2021
New Construction - Realtor Value
New Construction - Realtor Value
As a Realtor, you need to have a clear understanding of how you bring value to your clients.
Think of other people who own businesses in the service industry; dentists bring value by helping you maintain healthy teeth, lawyers specialize in areas to bring value in divorces, personal injury, probate and so on. Many Realtors expect people to hire them without having a clear understanding of VALUE they bring to the relationship.
Below is an explanation of why someone should hire a Realtor when buying a new construction house:
The search: Realtors have access to information about new areas being developed, and houses that the builders may have available. Many buyers focus solely on the price, but as Realtors we need to assist buyers in thinking about other attributes of the property, such as community amenities, schools, location, commute and taxes.
Negotiation / Contract: Builders are allowed to use their own contract and clauses, and often give incentives to a buyer that are not always what they appear to be on the surface. For example, “If you use our lender we will give you $$ towards closing costs”. As realtors we need to ask if the $$ given is going to affect our clients interest rate?
Representation: The Realtor should make every effort to attend all formal meetings that involve the builder and the buyer. Keep in mind that the builder's employees (sales and construction) represent the builder’s best interest and not the buyer.
Construction: Although realtors are not experts in construction, an extra set of eyes during construction is never a bad thing. An experienced Realtor has seen many houses being built and should be able recognize areas of concern.
Finished Product: Unfortunately, in today’s world many builders will try to deliver a house to a buyer that is not 100% complete or without flaws. The realtor is there to represent the buyer’s best interest and push the closing of the house until the builder has delivered a product that the buyer is satisfied with. Remember, the buyer is spending hundreds of thousands of dollars.
