If you’re considering buying a new construction home in the Wilmington area, you may be aware that each community has its own on-site licensed real estate agent that is familiar with the lots, home plans, builder(s), and construction process in that particular neighborhood. They work right along with the builder to make sure contracts are executed on time and all agreements are met. They usually work out of a model home, and provide tours of homes and the neighborhood. So, you may be wondering why you would need to hire another real estate agent if there’s one already provided. Here are a few reasons.
You may be unsure that neighborhood is the one for you…and a buyer’s agent will be familiar with multiple new construction communities in the Wilmington area. They can point you toward communities with different amenities, homeowners associations, and locations that you may not be familiar with; so, you can be sure you’re choosing the right one for you.
The on-site agent works for the seller i.e. the builder. They may be very knowledgeable and ready to give you all the information on the community that you need, but they put the builder’s interests first when it comes to negotiating. It’s important you have someone there who will put YOUR interests first and bring previous experience with new construction to the table, including questions you may not think to ask.
There is a lot of complicated paperwork. Your own buyer’s agent will examine the paperwork to make sure it includes just what you have agreed upon and nothing more. They’ll also know all the forms, insurance, etc. that’s required or recommended in the State of North Carolina, all of which will help protect you in the future. If anything bad was to happen, leading to a conflict or lawsuit, your buyer’s agent could be a fundamental source of information for settling the dispute.
The on-site agent may have a conflict of interest. In most cases, the on-site agent has a special agreement with the builder. They may receive a commission from each sale, a salary for sitting at the model and giving tours, and/or a bonus system as more homes are sold. These are just a few examples, but they are all incentives to work more in the builder’s favor.
While an on-site agent will be very helpful and walk you through picking out any upgrades and colors, a buyer’s agent will be most beneficial during negotiations and the closing process. Their commissions are also (99% of the time in North Carolina) paid by the builder. But it’s important to know that if you’ve already visited a community, signed up on their website, met with the on-site agent, and have just decided to bring on a buyer’s agent, you need to let the buyer’s agent know, because there could be a conflict in commissions. Even just submitting your name on their website could forfeit your right to a buyer’s agent. So, make sure you secure a buyer’s agent before you start looking at new construction homes. It will make things easier for all parties involved.
If you have any questions about buying Wilmington area new construction, just let us know. We cover New Hanover, Pender, and Brunswick Counties. Give us a call at 910.202.2546 or send us a message through our Contact page.