Why Have a Buyer's Agent When Purchasing New Construction Home in London Ontario ?
Buying a New Construction? Why You Need Your Own Real Estate Agent
What is a builder's agent?
When you buy a new construction, the home's builder is considered the seller, and the agent representing the builder is called the builder's agent.The builder’s agent will always have the builder's best interest in mind. After all, the job of the builder's agent is to get the highest price for the homes the builder is selling so the agent is not going to be as eager to negotiate down.
Why Smart Buyers use a Buyer's agent
First, if you have a realtor it costs you nothing. The new home seller pays for it. When you choose a realtor, by LAW, that realtor legally has a fiduciary duty (the highest responsibility) to get you the best deal, the most favorable terms, and look out for your best interests.
It's a good idea to have your real estate agent accompany you on your first visit to the new construction. Why? Because the builder ( the seller) will be responsible for paying the commission, and needs to know if you'll have a real estate agent representing you. If you dont have a real estate agent representing you, builders agent gets to keep all the commission plus your interest are not protected . If you hire your own agent , he / she can direct you to multiple sites and shop around entire market for you and not pressurize you to a particular site. Plus your deposit is protected under your agents insurance in case builder goes bankrupt.
When buying new construction, here’s what your real estate agent will help you with that you might miss out on if you stick with the builder’s agent:
- Negotiating extras: Want upgraded counters or appliances in that new home? Your agent can help you with all those extra perks, amenities, and upgrades. We can often negotiate with the builder on things like paint color or even the style of garage door, especially if the housing development is in the beginning stages.
- Recommending financing: A builder typically will have a preferred lender that it will try to steer you to, but your real estate agent can help make sure that youre getting the mortgage that works best for your situation. Shopping around is always wise, and you dont want the builders agent pressuring you into using their suggested professional unless its right for you.
- Overseeing a home inspection: Tempted to forgo a home inspection in new construction? Dont do it. The number and severity of new-home defects often rival resale home problems.The builders agent is unlikely to push for or offer up an inspection, so it's up to you and your real estate agent to make it happen.
- Your realtor knows how to ask the right questions – and many you don’t know to ask.
- Your realtor can guide you through the important steps during the 10 days of the Cooling Off Period. Skipping these steps can create problems.
- Your realtor has access to MLS. This is important for pricing advice so that you can compare both new and resale properties and be better informed on what is a fair price.
- Your realtor has a good general understanding of the neighbourhood and any potential new developments that could restrict your views later on and cause traffic issues.
- Your realtor can help you coordinate all of the closing costs ,extra or hidden levies, development charges and details with your lawyer.
- Your realtor can explain how the HST will affect your closing costs and can help determine whether you are eligible for any HST rebates on your purchase.
- Your realtor can explain to you how the interim occupancy costs work, and more importantly, how the builder calculates these charges.( in case of condos).
- Your realtor can explain the importance of “The Right To Assign.“ Once the property is constructed there is interim occupancy then there is registration. You as a new buyer may want to assign (sell your rights) your agreement at any time during this lengthy period and you may be just selling your paper. The purchase agreement must spell out the fees and conditions for this privilege so that you know these well in advance. Many builders will deny this right and you should know this before you buy.
Everyone wants to walk away from buying a home—whether it be a new construction or not—with peace of mind. Having an experienced real estate agent in your corner will help facilitate that.
If you are looking to Buy a New Home & Sell your existing home , Call Team Jimmy Today at 519-933-2559 for a Free Consultation & Learn How to Save Thousands and avoid costly mistakes !
Special Perks for our Buyer Clients:
- $1000 Home Depot Gift card at Closing *
- or Free Leasing at Closing for Investor Clients*
- Free Lawyers Review of Agreement of purchase & sale
- Free Mortgage Pre-Approvals at Best interest, terms & conditions* (oac)