We're going now to dive into a topic that seems biased. This is because we're going talk about why you should use a buyer agent to help with new home construction. You might think we are biased because we are agents. We are business people, to be honest. Prime is a company. However, to be honest, we have enough business to make it work. We want your business. We promise that we will serve you well and you'll be impressed and continue to use us. We want to share the knowledge. We want you to feel confident after you watch this series, regardless of whether you hire us or hire someone you know. Sometimes, people make mistakes by walking into a sales office and signing the dotted line without fully understanding the complexities. What makes you believe a buyer agent should be used when building a new home? We have been both on the buyer and seller sides. Both the buyer and the builder have been represented by us. In many ways, working with us gives you an unfair advantage, as we have seen the process from both sides.
First, you don't have to pay anything for us to use any other registrant. It is a false belief that using us costs money. Because you know that our commissions are paid by the builder, it doesn't. Our service is free to you. This is number 1. The builder does not represent your best interests and neither does the person who works in the model home. They will provide the minimum customer service and represent your best interests. They may not be licensed and provide no customer service or comply with ethical standards. A fiduciary obligation is what you are supposed to do. Agents asking you to sign a buyer rep agreement are not just trying to get you into a contract. This agreement is to protect you as it makes the agent accountable for what they promise to do. Fiduciary duties are the same as a lawyer or doctor. They have to protect your interests and represent your best interests legally. You would be signing up to the model as a customer if you walked in. This is where the real action begins. Are you receiving professional service as you make one of the largest investments of your lifetime? A buyer agent is a great option for new home construction. The new home contract for a new building is very complex. There are usually 35 to 60 pages, sometimes even more. For condos, it will be 200 pages. These deals should be reviewed by someone who has dealt with them before. You will always go to your lawyer but you want to find a new home representative who has some experience with contractual matters. Tarion compliance is an important topic. Many people don't know their rights under Tarion. We pride ourselves in that. Let's return to market comps. The area, education in the local area, schools and parks, as well as amenities. Access to all our trade partners is a bonus. A deck is as important as a fence. We mentioned earlier how difficult it was to arrange trades. We work closely with these trade partners, and we give them the number. They'll also give us great pricing. It's a win/win situation. We do volume and it's almost the same conversation when we talk about mortgage brokers. Although your bank may tell you "We give you the staff rate", if you work with a mortgage broker who does 100 million volume per year, you will likely get a better rate because they are trying to purchase that person's company. Leverage is what we are all about. Regardless of whether you use us or don't, leverage is where you're not emotionally saying "I must have this house", and the builder gets you to sign any contract at any price. Understanding the market and what you can find out is key to having someone do the work for your. This is basically what we are talking about. It's time to throw a party. A personal stylist is essential. A plumber is essential. A roofer is needed. We have a large database of trades. Contact us. What do you think consumers can do to interact with buyer representatives or negotiate with builders to reach a favorable position? Many people believe that the builder is just a license to print money once you build houses. It's just like any other business. There are both hard and soft costs. Construction costs are on the rise, which we know. We have to assess the pricing on a case by case basis. This is why you should go with an expert. We are familiar with the costs of these upgrades. Builder A versus builder B. The hard costs are almost the same. The hard costs are the same. You'll be surprised at how difficult it can be to get trades to come to your house to do any home renovations. The builder tends to have them on a more restricted leash. I say to people that he might be able to do it cheaper but it is still worth your time trying to find someone. And you only get what you pay for. What's your time worth? It's not a good idea to learn new skills while trying to manage a family, run a business, and enjoy the freedom of having your own home. The process can be frustrating for many people. We created a few proprietary systems within Prime that can help you navigate the process. This series will continue over the next few months. We'll give you more insight into what we see and allow you to get your feet on the ground in the neighborhoods, and possibly meet some of the builders.
Sometimes, people make mistakes by walking into a sales office and signing the dotted line without fully understanding the complexities.
What makes you believe a buyer agent should be used when building a new home?
We have represented both the buyer and the builder. Both the builder as well as the buyer have been represented by us. In many ways, working with us gives you an advantage as we have seen the process from both sides. First, you don't have to pay any extra money to use us. It is a false belief that using us costs money. Because you know that our commissions are paid by the builder, it doesn't. Our service is free to you. This is number one.
The builder may not be in your best interests, nor does the person who is building the home. They will provide the minimum customer service and represent your best interests. They may not be licensed and will not provide customer service or comply with ethical standards.
Let's take a moment to discuss that. A fiduciary obligation is what you are required to perform. Agents asking you to sign a buyer rep agreement are not just trying to get you into a contract. This is to protect you as it holds the agent responsible for the service they promise to provide. Fiduciary duty is similar to a lawyer's or doctor's duty. They have to protect your interests legally and represent them above their own.
We are referring to the fact that a listing agreement signed by the builder would mean they have a fiduciary obligation and look out for the best interest of the builder. You would be signing up to the model as a customer if you walked in. This is where the real problem lies. Are you receiving professional service while you make one of the largest investments of your entire life?
A buyer agent is also a benefit in new home construction. The new home contract for a new building is very complex. There are usually 35 to 60 pages, sometimes even more. For condos, it will be 200 pages. These deals should be reviewed by someone who has dealt with them before. You will always go to your lawyer but you want to find a new home representative who has some experience with contractual matters. Tarion compliance is an important topic. Many people don't know what their rights are under Tarion.
We pride ourselves in comparing builder A to builder B. Let's return to market comps. The area, education in the local area, schools and parks, as well as amenities. Access to all our trade partners is a bonus. A deck is as important as a fence. We mentioned earlier how difficult it was to arrange trades. We work closely with these trade partners, and we give them the number. They'll also give us great pricing. It's really a win-win situation.
It's volume and we do it, so it's almost the same conversation when talking about mortgage brokers. Although your bank may tell you "We give you the staff rate", if you work with a mortgage broker who does 100 million volume per year, you will likely get a better rate because they are trying to purchase that person's company. Leverage is what we are all about. Regardless of whether you use us or don't, leverage is where you don't go into the situation feeling like you have to own this house. The builder will get you to sign any contract at any price you want. Understanding the market and what you can find out is key to having someone do the work for your. This is basically what we are talking about.
The last part of this is that we are all about our clients for life. We tell people after we close, "We're available for literally anything." It's time to throw a party. A personal stylist is essential. A plumber is essential. A roofer is needed. We have a large database of trades.
This is where we add value to builders. We take off the slack and communicate with clients. If it doesn't stop them building the properties, then we want to make sure that they are happy. What do you think consumers can do to interact with buyer representatives or negotiate with builders in order to reach a favorable outcome?
Many people think the builder is just someone who builds houses. Once you begin building homes, the license to print money will be granted. It's just like any other business. There are both hard and soft costs. Construction costs are on the rise, which we know. We have to assess the pricing on a case by case basis. This is why you should go with an expert. We are familiar with the costs of these upgrades. Builder A versus builder B. The hard costs are almost the same. We can, however, evaluate the cost of these upgrades.
People tend to underestimate their ability to find trades that will do the work. You'll be surprised at how difficult it can be to get trades to come to your house if you have ever attempted to have home renovations done. The builder tends to have them on a more restricted leash. I say to people that he could do it cheaper but good luck finding someone.
You get what you pay for at the end. What's your time worth? It's not a good idea to learn new skills while trying to manage a business, have a family, and enjoy the freedom of having everything you want. The process can be frustrating for many people. Prime has a few proprietary systems that will help you navigate the process.
This great resource will help you get started in real estate investing.
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