Why You need a Real Estate Agent to purchase a New Construction Home

When buying a home, especially when dealing with large homebuilders like Lennar Homes or D.R. Horton, hiring a real estate agent to represent you can offer several advantages and protections. While these builders typically have in-house sales agents or representatives at their model homes, it’s essential to recognize that these individuals work for the builder, not for you as the buyer. Here’s why having your a real estate agent like the Dennis Scherer Team is important when purchasing a home from companies like Lennar or D.R. Horton:

1. Representation and Advocacy

• Builder’s Agents Represent the Builder: The builder's representatives are there to protect and promote the builder’s interests, not yours. A real estate agent representing you acts as your advocate, ensuring that your best interests are protected throughout the transaction.
• Negotiation Assistance: Even with large builders, there may be room for negotiation, whether it’s on price, upgrades, closing costs, warranties, or other concessions. A skilled buyer’s agent understands the market dynamics and builder practices, which can put you in a better position for negotiating favorable terms.

2. Understanding Builder Contracts

• Complexity of Builder Contracts: Builder contracts are often different from standard real estate contracts and are typically written to heavily favor the builder. A seasoned real estate agent can help you understand the terms, spot red flags, and advise you before you sign anything binding.
• Reviewing Incentives: Builders often offer various incentives, such as closing cost assistance or free upgrades, but these deals may come with strings attached (e.g., using their preferred lender). Your agent can help you evaluate if these incentives truly benefit you.

3. Guidance Through the Process

• Experience With New Construction: Buying a new construction home has significant differences compared to purchasing a resale home. Your agent can guide you through essential steps like reviewing floor plans, understanding home warranties, selecting upgrades within your budget, and navigating construction delays.
• Regular Check-Ins: Your agent may visit the site during construction to ensure that the work is progressing as expected and that any issues are identified early.

4. Market Knowledge

• Local Market Insight: Your agent knows the local real estate market and can help you compare the builder's homes to other resale or new construction options in the area. Builders often price their homes to compete, so an agent can help you determine whether you're getting a fair deal.
• Avoid Overpaying: Without an agent, it can be harder to assess whether a builder’s price or incentive package is competitive compared to similar homes in the area.

5. Inspection Advocacy

• Third-Party Inspections: Builders may assure you that the home will undergo their own quality checks, but these inspections are done by contractors paid by the builder. A buyer’s agent can recommend hiring an independent home inspector to identify issues, even with newly constructed homes.
• Defect Resolution: If problems are discovered during an inspection or walk-through, your agent can help ensure that the builder promptly addresses them.

6. Assistance With Financing Options

• Educating You About Mortgage Options: Large builders, like Lennar and D.R. Horton, may push you to use their in-house lending services or affiliates. While this can sometimes lead to incentives like reduced closing costs, these lending options may not always be the best available. Your agent can help you compare the builder’s financing offer with third-party options and determine which makes the most financial sense.
• Understanding the Fine Print: An agent can ensure you understand any financing stipulations or contingencies tied to your closing.

7. No Extra Cost to You

• The Builder Typically Pays the Agent’s Commission: In many cases, the builder pays the buyer’s agent’s commission as part of their marketing budget, meaning you get professional representation at no additional cost.

8. Avoiding Pressure Sales Tactics

• Protection From High-Pressure Sales: Builders’ on-site sales agents can sometimes be aggressive in pushing upgrades, incentives, or contracts, creating pressure to sign quickly. A buyer’s agent acts as a buffer and helps ensure you don’t rush into decisions you might regret later.

9. Long-Term Investment Perspective

• Resale Value and Future Considerations: A good real estate agent helps you consider the long-term factors that could impact your home’s resale value, such as location within the community, proximity to amenities, quality of construction, and market trends.

10. Navigating Construction and Closing Delays

• Keeping the Timeline on Track: New construction homes are often subject to delays based on weather, supply chain issues, or other factors. Your agent can help you manage expectations and work with the builder if there are delays that might affect your closing or living arrangements.

Conclusion: Protect Yourself

While D.R. Horton Homes and Lennar are reputable and established builders, the home-buying process can be complex and intimidating. Having a knowledgeable real estate agent in your corner gives you peace of mind, ensures you make informed decisions, and helps you avoid costly mistakes or overlooked details during the transaction. Even when buying new construction, having an expert like the Dennis Scherer Team on your side is always a smart idea!