When you’re looking for your dream home, the available houses on the market might fall short of your expectations. Alternatively, if you successfully locate your dream home, you could easily enter a bidding war with another interested party. The best way to avoid these stressors is through a new home build. By building your own dream home, you get to choose the design that appeals to you and avoid dealing with other people’s resale home damages. To ensure that your new home build in Colorado runs smoothly, working with a realtor is essential. Licensed realtors can serve as your knowledgeable support system throughout the building process.
Expertise
New home builds can be stressful. There’s a lot of information that someone needs to know when beginning their home build journey, and the average homeowner might not be familiar with all these moving parts. Realtors are knowledgeable about what’s required for a new build and can walk you through the entire process. This includes understanding the rules and regulations for home builds in your ideal neighborhood. Additionally, working with a realtor for a new build can ensure that you truly understand the upgrades offered to you and help you fit your custom design into your budget. Each upgrade comes with its own price tag, and it’s easy to get carried away in the showroom. Builders often showcase the options that add to the price of the build, and having an expert realtor to support you will save you in the long run.
Representation
When a company is building a new home, there is often a builder’s representative on-site. However, this representative has the company’s best interest at heart – not the buyer’s. This means that people commissioning the build don’t have someone on-site to ensure their goals are being met. That’s where a licensed realtor comes in. Realtors can enter the building site to act as your advocate and represent you. Agents have greater expertise in new builds and can make sure that everything runs smoothly. Most home builders will even pay your chosen real estate agent to represent you during your new home build. It’s important to note that your agent should accompany you to your builder’s meetings – especially the first one. If not, your builder can refuse to pay your realtor at the end of the build.
Free Services
It is a common misconception that when looking to build a new home in Colorado, you must pay your chosen realtor. However, this is not the case. Rather, the real estate agent is paid directly by the builder, not your pocket. Your chosen builder will account for the realtor’s commission in the cost of your new home sale. This means that if you don’t opt for a realtor, you cannot often subtract the realtor’s commission cost from the purchase price. Thus, if you don’t choose to use a realtor, that money goes directly to the builder. It pays to hire a realtor to act as your advocate and work directly with your builder. Realtors can help you save money in the long run, and if you’re paying for it within the sale price regardless, it’s best to get more for your money.
Choosing the Right Building Company
Not all home builders are the same. Some have better reputations and a higher skill set that better match a buyer’s goals. For example, if you’re looking for a specific home style like a Tudor, your agent can help you locate a qualified company that has experience with this specific style of home build. Realtors often know the builders in your area and can help choose the best one for the job. Agents should be familiar with both the quality and reputation of the work that their local companies offer. They can also find other homes that your prospective builder has built in similar communities to show you how the homes age over time. Once you choose your desired builder, your realtor will help set up a timeline for completion and manage any critical deadlines that are set.
Managing Your Money
Building a new home can be expensive. It helps to have a realtor in your corner who can help manage and prioritize your budget. Buyers may be easily tempted with wish-list upgrades which could increase the sale cost by thousands of dollars. By working with a licensed realtor, you can discuss your priorities with them prior to signing a contract with a builder to ensure that the included features correspond to your budget. This could mean scanning for both structural and design-based selections. If your builder is pushing something out of your budget, your realtor will be there to back you up with your decisions. Lastly, realtors can help locate and dispute any hidden costs in the builder’s contract which helps the seller save money in the long run.
Paperwork Support
The paperwork associated with a new home build differs from resale homes. Thus, if you’ve signed on a resale home before and are confident that you understand how to navigate the paperwork, the same might not be true for a new home build. Paperwork necessary for new home builds is often centered around setting expectations and developing a timeline of completion for the buyer. Without these completed knowledgeably, the buyer could run into issues with expectations throughout the build. Additionally, the builder will often provide paperwork that assures the buyer properly secures their financing so they can close on the sale when the home build is completed. Hiring a realtor to help you understand the paperwork associated with a new home build can save you stress and future liability.
Sale Negotiations and Disputes
Contracts written by the builder tend to favor the builder. This means that the buyer must understand all the listed terms and language within the contract. Realtors can ensure that the buyer knows their risks and liabilities detailed within the contract. If there is a disagreement among those terms, a realtor will help work out all the disputes before the buyer signs the contract. This helps the buyer avoid unintended consequences of their new home build. Realtors can also help negotiate the price of the build. Then, when all parties agree on the terms of the new home build, the buyer signs the contract, and the project can begin.
Hire an Agent for your New Home Build in Colorado
When looking to build a new home, hiring a Colorado realtor can make sure your build runs smoothly. Contracting a new home build is a unique process when compared to purchasing a resale home. It comes with new terms and requirements which are not easily navigated without expert knowledge. Chris and Melissa Lombardo, a Colorado-based real estate team, can ensure that your dream home is built to your standards and within a timeline that works best for you. Contact us today to discuss how we can help you with your new home build journey!