Buying a New Home When You Have a REALTOR® Minnesota

Home buyers who are shopping for a resale home generally know a REALTOR® can help them find and purchase a property that will meet their needs. But if you’ve decided to purchase a new-built home you may be wondering if you can still benefit from the assistance of a REALTOR®. Here’s help.  

Registration
If you’re thinking of using a REALTOR® to buy a new home, probably the most important thing to understand is that new home builders require you and your REALTOR® to register during your first visit to the new-home development. This registration is important because builders are very reluctant to compensate REALTORS® who become involved in a transaction after the buyer has visited the property. Therefore, your REALTOR® should accompany you on your first visit to any new-home development that you’re interested in. Being registered with a REALTOR® on your first visit doesn’t mean you can’t return freely to the development without the REALTOR® for subsequent visits and discussions with the builder. You can.

Education
You probably chose your REALTOR® early in the home buying process to tap their knowledge early rather than searching on your own. A REALTOR® who is familiar with the housing market and the home-buying process can educate you about homeownership, provide information about the local community and support your decision to buy a home.

Support
Many new-home builders are hesitant to negotiate new home sales prices, so using a REALTOR® won’t necessarily help on that front. Your REALTOR® can, however, help you understand the basic terms of your agreement with the builder and help to ensure you’re comfortable with the transaction.

Referrals
Remember that a REALTOR® shouldn’t provide legal advice unless he or she is also a qualified attorney. Nor should a REALTOR® offer an expert’s opinion about the quality of construction of a new-built home, unless he or she is also a building contractor or has similar expertise. What a REALTOR® can do is recommend an attorney, home inspector or other experts you may want to consult about your home purchase. Keep in mind that new home builders can provide these type of referrals as well.

Commission
If you decide to buy a new-built home, the builder likely will pay the REALTOR’s® commission just as a private seller would. The commission is a marketing expense for the builder, so you shouldn’t have to pay a higher price for your home if you use a REALTOR®.

Bonus
Some builders are so eager to entice REALTORS® into their development that they offer a bonus or other incentive in addition to a commission based on the sales price of the home. It’s a good idea to ask whether any such inducements have been offered. Again, the bonus or incentive shouldn’t affect the price of the home you want to buy.