Home Buying in 75013>Question Details

Michele, Home Seller in 75024

Make sure you have a reputable real estate agent to help you negotiate a new construction home. especially in allen, tx.

Asked by Michele, 75024 Wed Feb 22, 2012

Looks like in 3 years, our home value has decreased by 40,000. Don't get screwed like we did. Have an agent with you that KNOWS the builder you are dealing with.

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10
Definitely use an agent on new construction. Also make sure to get a home inspection on new construction. Just because it's new, it doesn't mean it's right.

John
Systematic Home Inspections
214-600-4344
2 votes Thank Flag Link Wed Feb 22, 2012
When buying new construction you also want to be mindful that the builder will discount homes as they get closer to finishing out the subdivision so the new builds in your neighborhood are direct competitors with you.
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.
Web Reference: http://dmdrealtydfw.com
2 votes Thank Flag Link Wed Feb 22, 2012
Choose an Agent who knows the market you are looking in, and has a record of sales there. We know the builders, their products, and the neighborhoods. A misconception is that if you are buying NEW, you don't need an agent! Not true! We can help you navigate through the new construction process. You need someone on your side!
1 vote Thank Flag Link Sat Jun 2, 2012
Your are correct. I highly recommend having a realtor helping you deal with the builder. Building a home from ground up is costly but you can tailor the home to what you like. Inventory homes are going to be less expensive especially when the builder is closing out. This is the time where you can get the best deal on the home and I always tell my clients what their options are. If you are selling a home in the area where the builders are still continuing to build you'll have a hard time selling. Builders can cut their price and they are selling their new homes the same price as pre-owned homes. I've seen this scenario many times and you'll have a hard time selling because buyers will choose the new homes with the builder's warranty over the existing homes.

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
Realtor®
Residential/Commercial/Investment
English-Indonesian-Hokkien
------------------------------------------------------------------
United Real Estate
III Lincoln Centre, 5430 LBJ Freeway #280
Dallas, TX 78240
469-371-2899
susie_k@att.net

http://www.dfwdreamhomes.net

Servicing your real estate need is my priority!
1 vote Thank Flag Link Wed Feb 22, 2012
That was four years ago. What subdivision are you in? Odds are you overpaid when you purchased it.
0 votes Thank Flag Link Thu May 10, 2012
I'm sure we did James. Unfortunate for us. That is why I posted what I did hoping to alert other buyers that are not from this area.
Flag Thu May 10, 2012
Michele,
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
214-418-0180
Melissa.Hailey@ColdwellBanker.com

http://www.linkedin.com/in/melissahaileyrealtor
http://twitter.com/#!/melissahailey
http://activerain.com/blogs/mlshailey
0 votes Thank Flag Link Wed Feb 22, 2012
Using an agent for new construction is a no brainer and can end up saving you money. It also gives you a second set of eyes and somebody to help you with the entire process that often times can take many, many months to complete.

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!

Don Groff
REALTOR® | Mortgage Broker
Keller Williams Realty | 360 Lending Group
o.512.669.5599 m.512.633.4157
listings@dongroff.com
0 votes Thank Flag Link Wed Feb 22, 2012
Thank you for your comment about Dallas Realtors ! Is very true about your statement many ways we protect your clients from making financial errors !

Lynn911 Dallas Realtor & Consultant, Credit Repair Advisor
972-699-9111
http://www.lynn911.com
0 votes Thank Flag Link Wed Feb 22, 2012
While none of us can predict future prices up or down, I certainly agree with you.

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.
0 votes Thank Flag Link Wed Feb 22, 2012
Bruce Lynn, Real Estate Pro in Coppell, TX
MVP'08
Contact
I completely agree. Home buyers must find an agent who knows the new construction process well. Most people don't realize that you can negotiated with the builders and get a much lower price than advertised. Having a Realtor in your corner is always a good idea, especially since home builders are professional sellers.

Ashley Purvis, ABR,SFR
Purvis Realty Group
214-868-2584
0 votes Thank Flag Link Wed Feb 22, 2012
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