The following article appeared in the September 25, 2008 issue of the EMC community newspapers. President Heather Skuce is using the President's Pen column offered to the Ottawa Real Estate Board by EMC to provide information to the public about the real estate market and to showcase the benefits of working with a member.
Generally speaking, there are three ways to buy a home. You can purchase the land and build it yourself; you can purchase a newly built home from a builder; or you can purchase a resale home from another homeowner. In Ottawa, most homeowners buy from the builder or buy resale. When looking for a resale home, buyers benefit from working with a REALTOR® to help find their dream property using the MLS® system, arrange and attend showings, assist in writing up an offer, negotiate on their behalf with the seller’s representative, and help to answer any questions that might arise during the entire process from viewing to closing. What buyers may not be aware of is that a REALTOR® can also represent them when purchasing a newly built home from a builder. In fact, it’s a great idea to do so.
Many REALTORS® have experience working with new home builders and can offer you advice on everything from lot selection to upgrades, and even which builder to choose. REALTORS® spend their lives immersed in the housing market and, as such, are perfectly equipped to help you select a reliable builder with a great track record to construct your next home.
Even though picking the house model is the part buyers look forward to the most, don’t discount the importance of lot selection. An experienced REALTOR® can help you determine how to choose your lot from the ones on offer. Depending on the future plans for development in the area, as well as your own family’s future plans (kids? dogs? a pool?) the size and location of the lot you choose can be vital to your enjoyment of your new home.
Once you’ve got the land chosen and you’ve moved onto the fun part of selecting your house model, the builder hands you the menu titled “optional upgrades” and those hardwood floors are looking pretty darned good. Are they worth getting? Surely they’ll add value to the home? It’s in the builder’s best interest to sell you as many upgrades as you’ll buy, but the money you’ll spend on upgrades doesn’t all translate into a higher resale value later on. A REALTOR® can offer you, the buyer, expert advice about which upgrades add the most value to a home (bathrooms and kitchens are the biggies) and which should be selected for the pleasure they will offer you on a daily basis, without the expectation that they will net you a higher sale price in the future.
Also, don’t forget that the sales representative you deal with during your purchase process is there to represent the company that builds the homes; your REALTOR® is there to represent you. He or she can negotiate on your behalf, assist with paperwork and get the answers to any sticky questions you may have. Working with a REALTOR® as your buyer representative may not even cost you a penny – many builders have agreements to cooperate with REALTORS®, meaning that the builder pays your REALTOR® a commission in return for your business. No matter whether you’re buying your first home or your seventh, a REALTOR® can be a valuable resource during your dealings with a builder.
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