YOU MAY BE TEMPTED TO GO WITHOUT A REALTOR — DON’T
New home shopping is an experience unlike any other. Stepping into a beautiful showhome where everything is new and clean and beautiful, without any clutter, it can seem like the perfect fit. Inside, you might be screaming out, “Yes! I am this colour coordinated and organized.” You want a new home. In fact, come to think of it, you need a new home.
After walking through the home dreaming about all the things you love and all the things you would change, you walk back down to the showhome office. “So, what did you think?” the salesperson asks.
You profess your deep love for the home, and then it begins. They can hold that last walkout lot for you for 48 hours with a $500 cheque that they won’t cash, you agree, and then you embark on the long journey of decision-making and paperwork.
Everyone knows that the salesperson works for and represents the builder, but what does that really mean? Who represents you?
Many people embark on this journey alone, trusting in the showhome staff to take good care of them. Some people even opt to save a few bucks using the builder’s lawyer for signing the documents. You are on your own from the beginning to the end, so what if something goes wrong?
Having a realtor along with you when purchasing your property is good for many reasons. To start, they are a neutral party that represents you, the buyer, while the showhome staff represent the builder.
Most builders have cooperative commission structures in place to pay your representative, but have you ever stopped to wonder why this is a good idea?
Over the years I have seen many reasons, here are a few:
NEGOTIATING CONTRACTS
Have you ever actually read through a builder’s contract? They are terribly long and very one-sided, leaving buyers at risk for things like having their house sold to someone who is offering a better price. It has happened before, and occasionally there is a requirement for conditions to be removed before the deadline, or the builder is going to sell to someone else.
REDUCING PRESSURE
In general, people buy what they see in the showhomes. But have you ever wondered if you are getting the best deal? What will your decisions mean for resale? What upgrades add value to the house, and which just cost you money? Having a professional go with you to help you make these decision is paramount.
The sales team will always be working toward upselling, and they don’t care if your add-ons cost you thousands but give you a negative return, they just want to up that price. While not every salesperson chooses their own numbers over integrity, it does happen all too frequently. Your realtor is there to look out for your best interests alone, and will help you navigate through all the sales pressure in making solid home-buying decisions
SCORING A BETTER PRICE
While many showhome salespeople will say that you get a better price without an agent, it’s simply not true. Agents can assist you in negotiations, getting you a better price while still being paid for their efforts by the builder. And remember, that salesperson only makes money if you buy with them. Your agent makes money regardless of who you buy through, and can use their experience to shop around with different builders and negotiate a deal that will leave you smiling.
AFTER POSSESSION
Our office has well over 150 agents and we communicate with other offices regularly, selling our properties and discussing how to best represent our clients. If your builder tries to state things such as “the city isn’t issuing any more permits for grading this year” or you find yourself getting the runaround, if we don’t have the answers we know someone who does, and often leveraging the power of the more than 3,000 real estate agents can get answers.
So before you go looking, sit down with your favourite agent. It helps to bring them along, and they need to register you with the showhome to allow them to represent you. When it is all said and done, you will be glad you did. Heather Faulkner is a realtor with RE/MAX Excellence with more than 13 years of experience. You can follow her on Twitter at @faulknergroup on Facebook, or check out her webpage at www.heathershomes.ca.