Home Price Appreciation Forecast Questions continue to come up about where home prices will head throughout the rest of this year, as well as where they may be going over the few years.
Top 2 Points To Purchasing New Construction
This blog has 2 important lessons: when out looking at new construction mention to the sale reps you are working with a realtor. That way if you return to purchase a property they will allow you to have representation. The second, having someone negotiate for you can earn you big rewards.
I recently had a call from one of my past clients. He had been out looking at property and had decided it was time to buy after taking a break from homeownership for a few years. He had been to a particular condo that he liked. When he was touring properties he always mentioned to the sales representatives that he was working with an Realtor and my name. This is very important when you want to return to the property with a Real Estate Agent to help you. I went to preview the product and meet the sales representatives.
The following weekend my client and I returned to tour the unit together. We had an appointment to meet with the sales rep and discuss an offer to purchase. The initial meeting did not go well. Actually, it lasted only 10 minutes. We arrived, were touring the unit with a sales rep and he informed us the prices had increased over the weekend. WELL, my client walked out of the building. I later called and spoke with the sales manager, explained we wanted to put in an offer, not full price. The sales manager listened to our offer and went to the builder. She came back a few days later with a counter offer. We went back and forth a few times, as is normal in a negotiation. We were able to come to mutually satisfactory terms and are closing later this week.
How working with a professional can help. Realtors know that Builders of new homes do not like to decrease the sales price. It hurts future sales in the community and can upset previous buyers. Since I knew this we negotiated in ways other than the sales price. We went for closing cost assistance, parking, storage, allowance for decor and HOA fees. In the end we were able to get a 2.5% closing cost credit, a subsidy for decor items, a storage locker and a year of free condo dues.
A long time ago, I also purchased a new construction property. I was not represented by a real estate agent. I walked in and paid full price for the unit. I did not get any seller assistance and no goodies. I thought the sales rep, they were so nice, was working in my best interest. I know different now. The sales rep works for the builder, representing the builders best interest, not the buyer.
If you are out looking at new construction, know you can use a Realtor. It does not cost you anything and as professionals we know the intricacies of negotiations of this type. Let me know if I can help you!!
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