Recently, I completed the National Association of REALTORS® (NAR) New-Home Construction and Buyer Representation training course at the Greater Chattanooga Association of REALTORS® (GCAR). Which is a fancy way of saying: I spent all day learning how to best represent my clients who are buying a new construction home. Though I have represented these clients before, I did feel this was an area of real estate that was much more on-the-job learning than I’d have liked. I’m the type of person who likes to feel completely prepared and knowledgeable before entering a situation and it turns out the real estate courses to become an agent just don’t cover everything! So, when the opportunity for this course came about, I absolutely jumped at the opportunity. The below questions and answers highlight a small snapshot of what I found important to share from this course!
Q & A from a buyer’s perspective:
Q: I thought builders had their own agents, why do I need another agent?
A: Builders sure do have their own sales people, who may or may not be licensed real estate agents. These agents represent the seller/builder and the builder’s interests. You need an agent (me!) who represents you and YOUR interests.
Q: Who pays the buyer’s real estate agent commission?
A: The builder typically pays the buyer’s agent commission.
Q: What will my buyer’s agent do?
A: hold on, this is a long one…
- research subdivisions and builders
- educate the buyer on developments, builders, subdivisions, construction, and the new-home purchase process
- shape realistic expectations of markets and preferences
- help the buyer define needs and preferences
- schedule visits to model homes and appointment with sales representatives
- accompany buyers on initial visits to model homes and register them as clients
- observe registration and showing policies
- help buyers evaluate houses, lots, subdivisions, and locations
- prompt buyers to ask important questions
- advise on the cost-benefit and resale value of upgrades and options
- help the buyer negotiate various terms
- review and explain transaction documents
- monitor construction process
- create and maintain a paper trail
- remind the buyer to schedule inspections at critical construction phases and provide a list of inspectors
- accompany the buyer on the final walk-through and call attention to items for the builder’s punch list of items for completion or correction
- accompany the buyer to closing
remind the buyer to do a follow-up walk-through before the warranty expires and inform the builder of needed patch ups
If you are thinking about a new construction home, let’s chat. I’d love to represent you as you navigate this exciting journey of buying a new home!