After six years in the doldrums, new home sales and starts are finally moving from a jog to a sprint.
There is a pent-up demand for new homes for sure. The absence of new home product has made the demand even greater.
So what’s the draw of new construction – which usually runs about 10 to 15 percent more than an existing home of similar size and features?
- Great options. Builders are building what today’s buying public wants – in design, amenities, energy efficiency and technology.
- Peace of mind. New construction comes with guarantees and warranties.
- Time to sell. Buying new construction gives buyers more time to get their home ready for sale to command top value.
It’s no surprise that new construction has clear advantages. In fact, 41 percent of home buyers prefer new construction if it’s available, according to a Harris poll. An additional 38 percent have no preference between new construction and existing homes.
But I’m always surprised when someone asks “Do I need a Realtor® when working with a builder? Won’t I save money by going solo?”
The answer is YES – you need a Realtor – and NO, you won’t save money if you go it alone. Here’s why.
- The price is the same with or without a Realtor. The price of the home you are building has a marketing fee built into the price. Appraisers and vendors require a one-price home for comps. There’s no discount for buying without a Realtor.
- You need professional representation more than ever when building. There are many, many moving parts – that if not handled well – can be very costly.
- Expertise is critical. Good plans, specs and contracts are a must. Your Realtor provides expertise and advocacy in these areas.
- The timing of the sale of your existing home is huge when buying new construction. You need the resources of a Realtor to make this happen.
- Plan for the future. Your Allen Tate Realtor can help you understand the current trends in design, so your home will be marketable in the future.
- Location, location, location. The best home design in the world on the wrong lot will have huge ramifications.
- Re-double your efforts. An extra set of eyes and ears to understand the process is huge.
Building a home is exciting, but you get to see many mistakes along the way. It’s much different than walking into a home with every feature and detail completed.
Your Allen Tate Realtor will hold your hand, help set expectations, negotiate on your behalf – and help you enjoy the ride along the way to new home ownership.
President and Chief Operating Officer, Allen Tate Company