The act of buying a home is not only costly, but it is also quite complex. In addition, you need to have full and comprehensive grasp of your purchase agreement. The entire purchase process can be extremely complicated when it comes to a pre-construction home. Unfortunately, a lot of first-time home buyers go into this process without fully understanding what is in involved. So, do you need a real estate agent when buying a pre-construction property?
What is a pre-construction property?
More and more home buyers are turning to pre-construction homes, but what exactly are pre-construction homes? In simple terms, a pre-construction home is a house you buy before it is constructed. There are several perks to buying a pre-construction home, but there are also some considerations to take into account. Due to the complexities and the various considerations involved with pre-construction homes, it is advisable to work with an agent.
The pros of pre-construction homes
To start with, pre-construction homes are generally cheaper than resale properties as they are sold at a fixed price. This means that the price of your property is not affected by real estate market fluctuations. To put it another way, you are buying a home in the future at today’s price.
Secondly, pre-construction homes can be personalised and upgraded to suit your tastes. As such, part of the appeal of buying a pre-construction home is the option to pick and choose your own fixtures.
They are new
As the property is new, it will not have any damage as the home is in pristine condition when you move in.
Easier to save up for a down payment
In most instances, the down payment for a pre-construction home is spread over several months. This makes it relatively easier for people to save up for a down payment.
The cons of pre-construction homes
There are various variables that can affect the builder’s ability to deliver your home on time.
Most countries have a sales tax that is charged on any new property purchases. Depending on your country’s sales tax rate, this can be a substantial amount.
In addition to the deposit and purchase price it is common for here to be some hidden costs and fees. These hidden costs can quickly cause the overall price of the pre-construction home to exponentially soar.
Why you need an agent when buying a pre-construction property
1. An agent can help you avoid extra fees
Many home buyers have fallen into the pitfalls of buying pre-construction homes without adequate representation. Without the help of a real estate agent then you will not be fully aware of all the fees involved in the process. Therefore, an agent will take the time to explain all the fees that are involved and help you avoid extra fees.
2. An agent will handle the documentation
One of the things tat you will have to comprehend is that there is a lot of documentation involved in buying a home. This can be particularly overwhelming for first-time home buyers. Your real estate agent will therefore assist you go through the relevant documentation. In addition, your agent will advise on the various processes and steps involved in the property buying process.
3. An agent will have a duty to protect your interests
One of the primary objectives for your real estate agent is to protect your interests and serve you as best as they can. Therefore, your agent will ensure that your pre-construction home is constructed to standard. In addition, your agent will see to it that all legal issues are attended to and everything else is in order.