What You Will Learn In This Episode:

Are you in the market for a new home purchase? Kimberly Suedmeyer is my favorite realtor in the world. She is hard working, polite and always professional. She will be the best person to choose to have the highest probability of getting the home you want. She specializes in covering all of Central Florida. Right now, Central Florida is booming with new home construction. One thing that buyers need to be aware of is that just because the home is new construction, they need to be careful before walking into the model home office. When driving by a new construction home development, it might be enticing to just stop in and have a conversation with the office manager in that bright, shiny model home, but think again. Before you do anything, listen to this podcast where Kimberly will walk you through ten reasons that it will benefit you as the buyer and cost you nothing to have a real estate agent in your corner when looking to purchase new home construction.

Items Mentioned In The Podcast:

Top Ten Advantages of Hiring a Realtor Before Purchasing New Construction (FULL PRINTABLE LIST HERE)
-by Kimberly Suedmeyer (The Real Estate Collection)

1.    Realtor Representation is a FREE service to Buyers
•    Builder pays commission—this expense is built into Builder’s overall marketing budget
•    Builders desire Realtor business—they offer many incentives to Realtors on top of commission
•    Buyer does not get a better “deal” if not using a Realtor
•    Buyer’s price does not increase if using a Realtor

2.    A Realtor represents & protects the Buyer
•    Builder Sales Agent works for the Builder—NOT for the Buyer
•    Builder Sales Agents looks out for Builders best interest—NOT the Buyer’s
•    Realtor has fiduciary responsibility to Buyer
•    Guidance to Buyer & review of all docs being signed throughout entire process (contract, financing, construction, inspections, closing)
•    Ensuring verbal promises are put in writing by the sales agent
•    Maintaining smoothness & consistency  when sales agents change at the community

3.    A Buyer can possibly SAVE or GAIN money through their Realtor
•    Some Realtors often provide a “gift” toward Buyer’s closings costs from the commission and/or share additional bonuses provided above the average 3% commission—these gifts are above and beyond what the Buyer is already receiving from the Builder
(I personally share any incentives, above the 3% commission, 50/50 with my Buyers)
•    Realtors have better experience into negotiating the price and/or promos for buyers
•    Sharing knowledge of market trends and which options & upgrades would be better suited to purchase up front from builder (“best bang for the buck”) vs. adding later

4.    A Realtor can provide valuable insight of different Builders & new home communities
•    Quality/Reputation/Issues with various builders
•    Type of Warranties offered
•    Energy efficiency products & practices
•    Which offer better upgrades as standards
•    Types of Promotions being offered
•    Community differences

5.    Realtor’s review of Builder’s sales contract
•    Know what you are signing!  The Builder’s Sales Agent rarely reviews the contract in its entirety
•    New Home Builder contracts are different from the standard contracts used in resale homes (not the FAR/BAR contract) and are unique for each Builder & community
•    Builder contracts are written in favor of the Builder
•    Realtors can often obtain the contract to review in advance of Buyer signing
•    Explaining in further detail how specific Builder requirements in regards to timeframes & deadlines, appraisal, financing, etc.

6.    Realtor’s experience in negotiations
•    When and how to negotiate price, options, promotions and/or terms
•    Negotiating leverage with Spec/Inventory homes & end of fiscal year

7.    Realtor’s experience in negotiating a home sale contingency (if applicable)
•    Knowing the realistic time frame for listing Buyer’s current home
•    Knowing the realistic time frame for selling Buyer’s current home
•    Clauses to understand & to be cautious about before agreeing

8.    Realtor’s guidance of the financing process
•    Builder/Seller passes on ALL closing costs to Buyer (unlike resale transactions)
•    Using Builder’s preferred lender entitles Buyers to promotions
•    Sometimes outside lenders can beat the Builder’s promos & save Buyer money
•    Realtors can be liaisons & help Buyer understand Lender’s lingo, policies, requirements, figures, etc.
•    Review of Lender’s fees & accuracy

9.    Realtor’s guidance through private home inspection & Builder’s inspections
•    Explaining why a private home inspection is imperative
•    Recommending appropriate home inspectors
•    Coordinating a private home inspection with builder & attending inspection
•    Accompanying Buyers to Builder’s inspections
•    Knowledge of items to “look for” before signing off on Construction Supervisor’s final walk-through list
•    Ensuring home is being delivered in a reasonable manner
•    Putting pressure on Construction Supervisor during final walk-through

10.    Realtor can be used as the “Bad Guy” if needed (Good Cop/Bad Cop)
•    Realtor can be liaison throughout process if issues arise
•    If needed, Buyer can maintain positive relations with sales rep while Realtor puts pressure on builder to “perform” and “make good” on promises
•    Realtor can be the “squeaky wheel”  & stay on top of Builder’s sales agent and/or construction supervisor

There are ZERO disadvantages!
YOU are the only one who loses when you do not have representation!

~It is crucial to hire an experienced Realtor who has knowledge with the new construction
~It is always best for the Realtor to accompany you on the first visit to the Builder community
~If you are visiting a community on your own, it is imperative that you register your Realtor in writing up front

Kimberly’s first podcast episode with Cory on buying or selling a home – LISTEN HERE!

Keep in touch with Kimberly:

Kimberly Suedmeyer’s website – www.SuedmeyerTeam.com

The Real Estate Collection – http://www.therealestatecollection.net

Cory Warren
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Cory Warren

Cory is a husband, father of three and vegan triathlete. His blog, Real IronDAD, is a lifestyle blog about food, family and fun that helps passionate people, mostly parents, who have over-scheduled, busy lives maintain a healthy balance of plant-based nutrition, fitness and overall wellness.
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