Systematic Home Inspections
If you purchase a new build you need to be aware you are most likely paying top dollar and if you want or need to sell before the subdivison if finished issues such as this can occur. You do need to work with an agent who will paint the whole picture for you given the possibility of needing to sell quickly. The marker in general over the last three years has declined in value and the amount of decline depends on the neighborhood.
I also noticed many buyers do not hire a realtor to deal with new construction homes because they think the builder will pass on the savings from not having to pay a realtor commission to them. This is the most common misconception and totally wrong since our commission is build in their advertising cost.
Thank you for posting your comment!
Susie Kay, GRI, CHMS, SFR
United Real Estate
III Lincoln Centre, 5430 LBJ Freeway #280
Dallas, TX 78240
Servicing your real estate need is my priority!
Thanks for being a voice of reason! Unfortunately too many home buyers just drive out to visit the model home and sign a contract right away without having anyone to represent them and their best interests. The builder rep works for the seller/builder and they are looking out for the best interest of their employer - not the buyer. In Texas, it should not cost you anything to hire a real estate agent to represent you (as the sellers pay our commission) and having somone on your side is a smart thing to do. Not only for assistance with pulling comparable sales to help you negotiate pricing, but also to have someone recommend things like a home inspection from a 3rd party (not just the guy who built the house). I have heard horrible stories such as people who bought a new home to find out that the builders contractors put trash down drain pipes during construction and have had flooding issues immediately after move-in.
There are so many reasons to hire a Realtor to represent you...from negotiating price to home inspections to knowing the process and how to avoid any last minute problems...having an agent represent you on one of the largest purchases you will ever make is just a smart decision.
I hope that your note/comments are helpful to other potential home buyers.
Melissa Hailey - North Texas Top Team, Realtors
Coldwell Banker Jane Henry Realtors
Just know that in this market or any market you will be paying a premium for a new built home. That is the price you pay for new construction and getting to pick out your cabinets, flooring etc. Here in Austin for example I can get my client an existing home that is 2-3 years old for about $30-40k less then a new build home of the same floor plan.
While some people may think this is worthwhile you will need an extra long time horizon to pay that premium back and grow your equity in the property. Unfortunately your 3 year time frame for buying and then selling is not a good one. Obviously life throws curve balls and nobody knows exactly for sure how long they may stay in a home. If you plan on moving within a three year time span it really does not make much sense to buy. There is just not enough time and the economy is too uncertain.
I know you are in a tough position now but honestly even a fantastic agent could not have gotten you $40k off your current home. They would have been able to provide you valuable market information that may have caused you to end up buying an existing home that would have been less expensive. It sounds like you may still be upside down but maybe by $20k instead of $40k.
Always use a good agent who can help you understand the market... only then can you make an educated buying decision. Even then there are no guarantees but the longer your time horizon the more likely you will build equity and wealth by owning real estate.
Best of luck to you!
REALTORÂ® | Mortgage Broker
Keller Williams Realty | 360 Lending Group
Lynn911 Dallas Realtor & Consultant, Credit Repair Advisor
I'm not sure why buyers resist this so much. Maybe it's a dream or the excitement of owning a new home.
I always say the builders reps are normally nice and friendly, but they are working for the builder, not the customer. I've seen so many things go wrong with the build job. I find that when a realtor is involved those issues get solved pretty quickly to the benefit of the buyer. When it is buyer against builder, I see builder win ever time.
Using a buyer's agent in most cases does not cost the buyer any money, in fact I think in many cases it can save the buyer thousands and save a lot of headaches.
Ashley Purvis, ABR,SFR
Purvis Realty Group