elitere | Nov. 8, 2022
When building a new home, there’s a ton to consider. If you’ve ever wondered whether you should engage the help of a Realtor when purchasing new construction, below are some of the key reasons as to why.
When you hire a real estate agent, they represent your interests and advocate on your behalf. Real estate representatives in the builder’s sales offices represent the builder’s best interest, not yours.
My home will be finished just like the model home…right?!
Model homes are designed to connect with you on an emotional level-they’re completely done up so you fall in love with the lifestyle that is being presented. The price tag on model homes isn’t the base price being advertised by the builder; it may in fact have hundreds of thousands of dollars in upgrades. Every builder is different with how they price, and the upgrades that they include as standard, so understanding exactly what you’re getting, asking the right questions, and reading all details and fine print are critical. Things such as quartz countertops, ceiling treatments, trim and window casings, window colour, fireplaces, windows, doors, plumbing fixtures, flooring, lighting, landscaping, a driveway, air conditioners, garage door openers, appliances, grass…the list of considerations goes on and on. A Realtor representing your interests will help make sure you’re aware of what’s included in the base price and what’s extra, so that you can budget accordingly and aren’t disappointed in the end.
Quality of Construction
How familiar are you with a builder you might be considering? What is their reputation? What is the quality of their construction? Is this builder registered with Tarion? There are people out there that think they can build, want to build, try to build, but are they a reputable and experienced builder? Ensure you know exactly who you’re dealing with. An experienced agent will be familiar with the builders in your area, their quality of work and can help you to further conduct research/ask the right questions of someone you’re considering. They can also provide recommendations and references to ensure you’re connecting with a credible builder.
Are you paying a lot premium for green space, as an example. What exactly does this green space entail-trees, a park, protected forest, community amenities? Is this green space protected and permanent, or will there be a development behind your home at some point in the future; however, it’s currently being sold as “green space.” Ensure you understand exactly what this terminology means and whether they’re any time constraints affiliated, as this will impact your future home value and potentially property enjoyment.
A real estate agent will help you get the most value for the least amount of money and will help simplify the transaction so that it’s straight forward and stress-free. You might be a great negotiator, but even the best negotiators sometimes need to step aside when purchasing for themselves, as they’ll have an emotional connection to what they’re buying. An experienced Realtor will also know what is/is not negotiable, as it varies by builder. For example, some builders may cover a portion of the closing costs, Tarion warranty registration fees, upgrades, etc. Builders are far more likely to negotiate on fees or upgrades than they are on price. An experienced agent will help guide you through negotiations and ensure you’re getting the most for your money.
Get Everything in Writing
Any concessions or guarantees provided by the builder should be confirmed in writing. Don’t sign any paperwork or contracts without ensuring everything you’ve agreed upon including upgrades, fees, timelines, etc., are incorporated into the contract. If you skip this step, the builder does not necessarily have to deliver what they “verbally” agreed to and it could pose incredibly challenging to have any recourse. An agent will ensure that all the terms agreed upon are included in the contract.
How familiar are you with a real estate contract? Do you know what to look for to ensure you’re receiving all the items you should be receiving? Are you aware of any hidden fees or community fees? A real estate agent is an expert in the industry who is there to provide guidance throughout the transaction. They review real estate contracts regularly and know what to look for to ensure everything is correct, and refer you to lawyers when further due diligence is required. A Realtor knows the nuances of the different contracts and will help review and answer questions pertaining to the contract. It’s strongly recommended that you don’t sign any paperwork or contract without your agent being present to review and advise.
Questions? We’d love love to hear from you!