So, in this time of plenty, would you really need the help of a Realtor to buy one? It’s a fun question that we’d like to answer this Wednesday.
Okay, first and foremost, you’ll need to know the main difference between a newly constructed Edmonton home and an already existing one.
We suggest you read Romana King’s MoneySense article “The top 10 mistakes new home buyers make”.
An excerpt: “Almost one third of all homes sold in Canada each year are brand new
Buying direct from the builder means you can customize your dream home to your exact tastes. It means higher energy efficiency ratings than older homes, and often higher quality building materials.”
Being aware of the distinction between those two types of home could save you thousands of dollars.
WHO DOES A REALTOR WORK FOR?
When purchasing a brand new home, almost always, an agent will represent the developer, and that agent has the legal obligation to work for the sole interest of the developer.
Sole interest? That’s to get the most excellent sales price and terms on the contract for the builder!
There’s only one of two things that will happen if and when you work with a seller’s agent; you either get a “Dual Agency” or be categorized as an “Unrepresented Buyer”.
- Dual Agency: The agent will represent both you and the seller.
- Unrepresented Buyer: The agent will again work for the sole interest of the developer.
If you get a “Dual Agency”, you still would not be 100% secured. Remember, the agent you’re specifically talking with most probably have a long and good relationship with the developer.
Would you really know where he’s a loyalty stand? If you were the agent, where would your interest be? The person you just met or the developer you’ve been working with for years?
You decide whom the Realtor would really work for.
WILL YOU CUT COST BY NOT USING A REALTOR?
NO. You will not.
Real estate developers are smart (and they should be, if they want to stay long in this business). If they cut sales prices for you, this will set precedence for other buyers after you. If you get a hefty discount, they’ll demand something similar. The developers have already thought of a way to counter this risk. Even before construction takes place, they have already set a budget. For example, if the construction value of a brand new home is $500,000, they’ll add up $50,000 so it can be their buffer. Same thing goes with the commission of agents. The commission that should have been paid to your Realtor (if you availed of one) is already included in the main budget. Since you did not get one, the seller’s agent or the developer will keep the cash $$$.
Realtor’s are market experts. They work day-in and day-out helping clients buy and sell homes. A reliable Realtor will have the set of skills to aid you in finding the perfect brand new home--he or she will possess the tools and market insight to execute this.
A real estate developer on the hand is out to make money. If you don’t know what you’re doing, the developer(s) will have a field day.
Is a Realtor a requirement in purchasing a brand new Edmonton home? Yes (If you value your money).
For more from Team Leading Edge, follow the team on Twitter at @teamleadingedge, subscribe via this RSS feed. Make sure to subscribe to Team Leading Edge daily newsletter on the Edmonton Real Estate market.
Note: Remember, you can access all our available Homes For Sale in Edmonton through our Edmonton MLS Listings page.
Subscribe and get the daily news, updates and latest trends in Edmonton real estate.