Do I really need to use a Realtor to buy a new home?

New Construction

Recently I was working with a buyer who had bought about seven or eight homes in his lifetime. He was interested in new construction homes for sale in Naperville. He asked me, “Why should I use a realtor when building a home? I heard that when I buy a new construction home that the builder will charge me more for the house if I am using a realtor?” Oh, well let me explain…..

• Cost of realtor services are already built into the price of the new home. Although once a concern, for many years now, builders have built in the cost of using realtor services into their home prices. This cost is standard and cannot be adjusted; therefore, if a realtor is not being used you are missing out on someone representing you and your best interests in the purchase even though you are paying for it. The builder or sales representative does not represent you or look after your best interests as a realtor would; they are looking after the interests of the builder (as they were hired to do).
• A Realtor can pull area comps. A realtor will ensure that the home you are buying or building compares in value to other properties in the area and that you are not overpaying for the property. This is especially important when adding upgrades/features to the property! A realtor will make you aware if you are pricing the home out of the area norm. These are factors you need to be aware of, whether or not they impact your decisions about adding the upgrades/features. A realtor will give you an idea of how the property will compare to other homes.
• Upgrades/features that are expected in the area. Regardless of where you are building your new home, future buyers will have an expectation of the features and upgrades that should be included in your home based on other homes in the area. Buyer expectations of upgrades/features vary quite drastically based on where the property is located, even within the same town. For instance, buyers looking at homes for sale in Plainfield are not all expecting the same upgrades and features. A buyer’s expectation of upgrades in on the north side of Plainfield is very different than the expectations on the south side of Plainfield. A buyer in one area may expect granite counters and full basements whereas in a different area a buyer expects laminate counters and any type of basement, not just a full basement. A Realtor will help convey to you what the area norm is.
• Estimation of future real estate taxes. One of the big issues we have heard in the down market is that buyers bought a new construction home and didn’t expect the taxes to be as high as they are. Since the property is taxed as unimproved land until someone purchases it, the tax bill is drastically lower until a buyer purchases it. Then one year later the buyer (new owner) gets the tax bill and is typically shocked by the amount of the tax bill. Now the sales representative/builder will give you a percent to estimate for the tax bill; however, they do not pull area comps to compare what the tax bill could possibly be with your desired tax exemptions. (i.e. Homeowner, senior tax exemptions). Remember, the sales representative/builder does NOT represent you…they represent the builder/seller.
• Services are free to you, the buyer. As always, our buyer representation services are free of charge to you, the buyer.

Although these items and many other realtor services, are important when buying new construction, it is critical to work with a Realtor who understands how to represent buyers with new construction. Not all Realtors know the same things or have the same specialties.

Now going back to my Naperville buyer who was wondering why I should represent him in his new construction purchase, he bought a new construction home and is thrilled with his new home. He feels good about his upgrades/features, the price he spent, and what his taxes are going to be in the future.

If you are looking to purchase a home, call Bowers Realty Group today at 630-712-1921 to have one of our trained realtors represent you with your new construction purchase.