Why New Construction Negotiations Require a Realtor’s Savvy

August 6, 2019


One of the many reasons to use a real estate agent to buy a home is their negotiating expertise. But when buying new construction, buyers can be tempted to purchase straight through the builder’s agent (an on-site agent operating on behalf of the builder).


It’s not uncommon for a buyer to say, “I work in sales! I know how to negotiate.” Negotiating skills are valuable in virtually every industry, so many buyers assume their own skills can seal a great deal. But good Realtors have honed negotiating techniques that are specific not just to the industry but also to all builders and will benefit you big time at the closing table.


Here are five ways a Realtor’s negotiating savvy will benefit you when buying new construction:


1.) Your agent is objective in their approach. This is one of your life’s biggest investments, both financially and emotionally. Falling in love with a potential home can easily weaken your resolve in negotiations because your heart is invested. Your Realtor is not. He or she is able to approach negotiations from a pragmatic, dollars-and-sense perspective to benefit you in the end.


2.) Your agent knows what you see is NOT always what you get. It is easy for buyers to get dazzled by a builder’s model home, which is built out with top tier upgrades and flashy extras. Your agent knows this isn’t what you are buying, and they are there to help you stay focused on what you are actually negotiating for.


3.) Your agent can better bargain for upgrades. Beyond the price of the home, builders offer upgrades in flooring, appliances, plumbing, lighting, cabinetry and plenty of little extras. A knowledgeable agent is well versed in these upgrades and can work them into negotiations.


4.) Your agent knows the market. If you’re an experienced negotiator, you know the importance of doing your homework. I am continuously researching the market and local builders to learn about their offerings, pricing structures and other details that I use to better position my customers in negotiations.


5.)Your agent is well versed in builder’s contracts. All negotiations center on a contract of some sort. Builders have their own contracts written to benefit their interests (it’s business after all!) and a good agent knows exactly what to look for in the fine print.


New construction is a great option for buyers who want a brand new home with contemporary designs, energy efficient appliances and customizable features. But negotiating for that new home is a different story.


I am a Certified Negotiation Expert and have strong relationships with many local builders. Contact me today to learn about new construction in the area at mbarzaga@davidsonrealtyinc.comor (904) 501-1830.

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