We are often asked why you would need buyer representation when buying new construction, after all, it’s new – what could go wrong?!  Well, there are lots of pitfalls to lookout for, and below are just a few of the items that regularly come up.

1) The seller’s agent, or the builder, represents the builder and their interests – not yours.  They may be very nice to work with and all may seem fine, but if something goes awry, you need someone on your side to work through the problems.  People often do not realize that the builder or seller’s agent is “not on their side”.

2)  A qualified buyer agent will get to know your needs and plan out a strategic home acquisition plan that best suits your needs.  Oftentimes buyers without agents will dart here and there looking for a deal without knowledge of what options are available to them.  The buyer may settle for a listing that is not the best possible solution to their needs.

3) An experienced buyer’s agent can provide you professional advice and insight during each step of the construction process, knowing what questions to ask every step of the way on contract, financing, appraisal, construction, selection, inspections, walk-through, closing and warranty issues.

4) While the seller’s agent will give the appearance that sale prices are non-negotiable, an experienced agent knows where they can work the deal. The price may not be negotiable, but there may be many options that are, for example, builder vs. bank financing, additional features and additions to the plan, may be negotiated upfront.  A good agent will listen to the builder for where they have “room” to negotiate – and often it is not on price, as the sale price will be the basis for other future deals in the development.

5) A buyer’s agent costs you nothing as the builder allocates a sales commission to be paid to a buyer’s agent, as most consumers are represented for the above reasons. Most builders utilize buyer agents and the Multiple Listing System (MLS) with their listings – this allows them the best exposure to the market and thus more demand for their product – which maximizes their sales and profit.  When a buyer does not use a buyer’s agent, the builder either pays their sales representative a higher commission or pockets the savings. Which does nothing of benefit for you.

6) Why not use a professional who has years of experience and knowledge and put them to work for you? It would be comparable to trying to be your own attorney in court. Not usually the wisest choice.

 

CASE STUDY

Matt Schofield’s parents first called Andy Piper regarding new construction in Washtenaw County to find out about building a home and options, for their son and daughter-in-law. Andy referred them to Karolynn knowing she could best assist them, given her background knowledge of builders and working with buyers in new construction.

The Schofields interviewed Karolynn over the phone, asking a lot of questions. Once they felt comfortable, they recommended Karolynn’s real estate services to their son, Matt.

When Karolynn met Matt and Lesley, they admitted they really didn’t know where they wanted to be. Saline, Ann Arbor, Novi, Northville were the many options. She worked with them on finding a builder who would provide a home meeting their needs by location, price and style. They did a lot of research, comparison-shopped together, narrowed down their options based on Karolynn’s input, and ended up purchasing in Lohr Woods of Saline.

They needed someone who could compare the difference between builders by model, style and pricing to meeting the buyers’ needs. At the same time, they didn’t want to wait the typical 10+ months on new construction homes, so they were also adding the spec homes to their searches as well. With Karolynn’s experience, knowledge and gumption, she navigated what would normally have been a stressful, time-consuming process and made it a seamless, smooth ride into home ownership.

Cole Taylor Mortgage, a longtime collaborator of Karolynn’s, came in to provide financing for Matt and Lesley.  They also refinanced their previous home with Cole Taylor to get the interest rates down as well.  Patrick Sortor and Tom McLinden of Cole Taylor worked tirelessly for this client and were able to work on getting the funds released to the builder the day of closing, rather than waiting the typical three days of new construction funds to be transferred.

“We recently made the decision to relocate to better accommodate our growing family, and ultimately chose to build from ground up. Working with Karolynn as our buyer’s agent with a new construction home was instrumental as she focused on our specific needs, rather than just working with a sales person from a single development. Her knowledge of all our options enabled us to see different communities, builders and styles of homes to pick the one that was best for us. She was really focused on our needs throughout the process and helped us make the best decision for our family.”

Matt and Lesley Schofield

 

The Schofields’ experience of having a knowledgeable buyer’s agent by their side left them with the home they were looking for, headache-free. When making one of the largest financial purchases in your lifetime, for some the largest ever, don’t you want the best representation on your side, looking out for your best interests?