Why hire a real estate agent if you’re purchasing new construction

In today’s real estate market, Triangle residents and those starting to flock to Raleigh-Durham are seeing new construction make a return. New construction is a great opportunity for buyers looking for move-in ready opportunities throughout the region. These homes offer numerous benefits, such as modern amenities, warranties, and the appeal of being pristine and untouched. However, that doesn’t mean hiccups won’t occur along the way if you purchase a new home in the Triangle.

Sherri Felton, is the New Construction Manager with The Jim Allen Group. As an experienced agent who represents buyers through the construction process. Here are the reasons she recommends you hire an agent if you’re considering buying new.

When purchasing new construction, one of the first reasons Felton said you need a real estate agent is to ensure you have an advocate throughout the purchase of the home.

“If they’re purchasing new, the Realtor® that they hire will work for them,” she said. “If you deal directly with the builder or the builder’s agent, they are not there to represent the buyer. They are there for the seller, so it always helps.”

An on-site agent works for the builder. That means their goal is to help buyers close on a home for their employer. They are experts on the community and the builder’s homes, as well as the construction process. While they are working to ensure a buyer has a great experience, buyers still need someone to help them along the way.

“No matter what kind of transaction you have, new or resale, you need a Realtor®,” Felton said. “You want somebody on your side to be able to talk with the other agent and to understand the lingo and be able to tell you what is going on and to help you out.”

Building a home isn’t a straightforward task. “There are 100 little things in between writing that contract and getting it to close that have to happen—and have to happen correctly—in order to get you to your closing date on time and for things to go smoothly,” Felton said. “You want to have somebody that knows the market and can guide you and help you understand the new construction process.”

Regardless of whether you’re purchasing a custom-built home or choosing from standing inventory, Felton said it’s important that an agent steps in to make recommendations for the buyer’s best interests.

“Your Realtor® will guide you on the inspections and the repairs,” she said. Contrary to what some believe, Felton explained a new construction home may have issues that need to be caught before move-in to ensure repairs are made before it becomes the buyer’s problem down the road. She always recommends buyers have inspections done, even on new construction. “It may not be a big report, but it’s important to catch items when they can be repaired, before they might cause a situation.”

She also said real estate agents need to be involved from the beginning for custom built homes. “If a buyer is able to purchase a presale home, which includes meeting with the builder, choosing their home plan and picking all of the finishes, Realtors® need to be involved from the very beginning,” she said. “The Realtors® need to attend all of the meetings to help guide the process, and answer questions. It is also important that the Realtor® knows what communication their clients have had with the builder. Having a Realtor® on your side can help speed up the process and get issues resolved faster.”

Agents have an insider pulse on the market. They have knowledge about new construction and communities, the parts of the Triangle that are growing in popularity, and even what’s about to become available across the market. That means they also have insights into what homes are readily available, and what locations can’t keep up with demand.

“I like to prepare the buyers up front,” Felton said. She pointed to the COVID-19-related real estate market and said buyers were well informed of housing and labor shortages, as well as materials shortages that caused issues with timelines. “Most of the time, the buyers have been pretty understanding.”

However, many of the issues Felton mentioned in a current market have to do with land shortages, delays caused by city approvals, and other similar situations that are still out of a builder’s hands. “We have the information,” she said, and added that a buyer’s agent will make educated recommendations for buyers, providing them with the proper insights to find the right home for their needs.

A Realtor® can help a potential buyer better understand the market, even as it stands today. As the market has begun to normalize, Felton said it’s still a great time to buy—especially new construction.

“Go ahead and purchase the house you want right now,” she said. “If you’re renting, you’re not getting any equity. If you buy—even at a six percent interest rate—if you can afford it, even for a year, you can always refinance when the rates come back down.”

Felton explained that newer buyers don’t have the experience to know the ins and outs of refinancing, and higher rates seem to scare them off from finding a home.

“There are loan products out there that can help first time homebuyers,” she added. It’s a good idea to get in touch with a trusted lender like Towne Mortgage of the Carolinas to discuss options, and your Realtor is there to help you find the right solutions for your needs.

One of the biggest misconceptions about new construction is that if you don’t use an agent, the builder will give you a deal on the home.

“There’s no commission deduction if you don’t use a Realtor®,” Felton said. “The seller pays the commission, and they don’t get a break in the price because they don’t use a Realtor®.”

In fact, because the seller pays the commission, that means the buyer doesn’t have to worry about paying a Realtor® out of pocket for those services. “You might as well have somebody on your side to protect you and your interests if you’re buying a house, and guide you along the way,” she said.

There’s no reason to avoid working with an agent when you’re purchasing new construction. Felton added, “The biggest reason to use a Realtor® is you want somebody there to represent you—to be on your side.” It’s the smart thing to do to protect your investment.

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