Buying a home in 2023 – Consider the New Home Advantage
If you have been considering making a move, it may be wise to consider the New Home Advantage.
WHAT IS THE NEW HOME ADVANTAGE
In 2020-2022, we saw a huge surge of home buyers, but we had a shortage of resale homes available to purchase. Due to that fact, many home buyers chose to purchase a brand-new home immediately after the pandemic started. However, builders were struggling to keep up with the demand. There were waiting lists with many builders in many different markets across America.
Fast-forward to mid-2022 when the housing market hit the brakes after the Federal Reserve Bank raised the interest rates in an effort to control inflation. Builders were still building as many homes as fast as they could to keep up with the demand we had been seeing. However, the demand abruptly stopped (or at least dropped significantly). As we moved into 2023, we have seen many builders offering plenty of opportunities for a home buyer to purchase one of these spec-homes that is already completed or nearing completion.
DO I NEED A REALTOR WHEN BUYING A BRAND-NEW HOME?
While some people may advise you not to hire an agent, it’s never in your best interest to be unrepresented as a buyer when the seller is a professional home seller. Home builders know the trends, the market, and they are going to look out for their own bottom line. However, when you hire a REALTOR to represent you, that agent has a fiduciary responsibility to you. That means that your agent’s job is to look out for your best interest and to protect you from a professional seller that is trying to make the most money on the sale.
HERE ARE A 8 REASONS YOU NEED AN AGENT ON YOUR SIDE
· The sales representative in the model home is looking out for the builder’s best interest, not the buyer.
· Buyers will need multiple inspections during the construction process. The builder’s salesperson will likely not disclose this or assist with setting these up – but your REALTOR will.
· Your agent will be with you when important phases of the construction are complete and can attend builder walk-throughs with you.
· A REALTOR will supply you with the recent comparable sales in the area and help you understand how these might affect the pricing of the new home you want to buy.
· Your agent will help you negotiate the best possible deal on potential upgrades, financing incentives, and discounts.
· The builder’s salesperson will appreciate having someone involved on the buyer’s side who understand new construction as they will help facilitate the transaction more smoothly.
· Your agent can advise on choosing the best homesite with the highest resale potential.
· A REALTOR can help you analyze the new home absorption rate which will indicate how much negotiating room you may have.
WON’T I SAVE MONEY WITHOUT AN AGENT?
The short answer is No. Some buyers believe they will save money by not having a REALTOR, but this is typically not true. The builder won’t discount the price of a home any more than absolutely necessary because they don’t want to impact the appraised values of the subsequent sales in the neighborhood. A good REALTOR can help you determine the best ways to negotiate to get you the maximum value while maintaining the integrity of the comparable sales. Additionally, the builder has a marketing budget that includes commissions payable to agents who represent home buyers. The myth that you can automatically save the commission when buying without an agent is simply that – a myth.
OK – I’M READY TO BUY A NEW HOME
Congratulations! If you are moving within the North Texas area, including across the Dallas-Fort Worth Metroplex, give our office a call. Our agents are happy to help answer any questions that you have. We will provide you with information about new construction neighborhoods, builders, and floor plans. We can assist you with the entire process. You deserve to have someone represent your best interests when buying with the New Construction Advantage.
About the Author
Melissa Hailey is a successful real estate broker in Texas. She is also a certified real estate instructor and the CEO for Agent Advantage Coaching and Training, as well as a Certified Coach for Workman Success Systems. Her passion for helping REALTORS build their real estate business is evident in all that she does. The more agents she can help, the more consumers she can impact in a positive way through home ownership. Connect with her on LinkedIn @melissahaileyrealtor