{"id":1678,"date":"2018-05-24T15:15:58","date_gmt":"2018-05-24T15:15:58","guid":{"rendered":"https:\/\/www.trepryor.com\/blog\/?p=1678"},"modified":"2023-09-08T15:35:51","modified_gmt":"2023-09-08T15:35:51","slug":"need-realtor-when-building-a-house","status":"publish","type":"post","link":"https:\/\/trepryor.com\/blog\/need-realtor-when-building-a-house\/","title":{"rendered":"Do I Need a Realtor When I’m Building a House?"},"content":{"rendered":"\n

Real estate can be a tricky thing. There aren’t any classes about it in most schools but it’s something most Americans are interested in. In fact, 84% of Americans see homeownership as a good investment<\/a> even though the percentage of ownership has been declining since 2005. So how is building a house different than buying an existing home?<\/p>\n\n\n\n

\"Photo<\/a>
A great deal goes into building a house. There are hundreds of moving parts and plenty of ways for the builder to take advantage of the home buyer.<\/figcaption><\/figure>\n\n\n\n\n\n\n\n

When something is as big as “buying a house” you don’t want to mess it up. There are a good number of snags that could really haunt you for years to come.<\/p>\n\n\n\n

What about building a house? Isn’t that more straightforward? After all, the builder is going to make it brand new<\/em>. What could go wrong?<\/p>\n\n\n\n

Well, what if I said, “It costs you nothing<\/strong> to have a Realtor.” Yes, that’s true. Whether you’re buying an existing home or building a house, buyers never pay commissions. Those are paid by the seller or the builder.  It’s just the way it is.<\/p>\n\n\n\n

Can’t I just trust the builder?<\/h2>\n\n\n
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\"Photo<\/a>
Dreaming about building your dream house?<\/figcaption><\/figure>\n<\/div>\n\n\n

Sometimes people get confused when it comes to new construction. They just drive up to the model home and start working with the representative there. That person could be a real estate agent or simply a sales rep. They think, “Hey, it’s easy. I’ll just tell them what I want and they’ll build it.”<\/p>\n\n\n\n

Not so fast kemosabe<\/a>.<\/p>\n\n\n\n

How do you know that the builder will have your best interests at heart? After all, there are only 1,000,000 different ingredients in a new house. (I might be exaggerating… OK, I definitely am.) How do you know the home is being built correctly? What about what’s behind the walls? Or, up in the attic?<\/p>\n\n\n\n

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There are a large number of ways that a builder can cut corners to save themselves money.<\/p>\n<\/blockquote>\n\n\n\n

And most of these ways are not<\/em> easily seen by the untrained eye. Don’t put yourself in this position. The last thing you want is to be the main character is another money pit horror story.<\/p>\n\n\n\n

Don’t risk it. Bring a Realtor to represent you. Most builders welcome buyers with their representation. The ones that don’t… you wouldn’t want to have them build your dream home.<\/p>\n\n\n\n

Bad home builders vs good home builders.<\/h2>\n\n\n
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\"Photo<\/a>
The job of the sales rep is to sell you.<\/figcaption><\/figure>\n<\/div>\n\n\n

How many home builders are there in a city the size of Louisville, Kentucky? The Builders Industry Association of Greater Louisville has close to 160 members who are home builders. But there are many more than that.<\/p>\n\n\n\n

How do you separate the good ones from the bad?<\/p>\n\n\n\n

First and foremost, you should speak with an experienced Realtor<\/a>. Find one that knows the market and has been a full-time agent for many years. It’s impossible to work in a city and not hear the stories… both good and bad, about what is taking place.<\/p>\n\n\n\n

If I could, I would publish a list of Louisville’s Best Home Builders right here. I’d even publish a list of the bad ones too. But my lawyer has told me it’s not a good idea. *wink*<\/p>\n\n\n\n

But if you’re in the market please call me. I have solid recommendations, as well as, strict warnings. I would love for everyone to have a wonderful building experience but that’s simply not feasible. So, let me help you as best I can.<\/p>\n\n\n\n

Determining the best price when building a house.<\/h2>\n\n\n\n

I wrote a piece for Louisville Homes Blog last year. In this article, I outlined the only possible path to saving money by not<\/strong> having a Realtor.  See what you think of this.<\/p>\n\n\n\n

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  1. Take your Realtor to the builder with you.<\/li>\n\n\n\n
  2. Pick out your favorite lot.<\/li>\n\n\n\n
  3. Select the house plan that best fits you.<\/li>\n\n\n\n
  4. Make any floor-plan changes.<\/li>\n\n\n\n
  5. Make all of your finish selections. (And don\u2019t change anything after.)<\/li>\n\n\n\n
  6. Get the bottom line price<\/strong> for the home then leave it to \u201cthink about it.\u201d<\/li>\n\n\n\n
  7. Return the next day without<\/em> your Realtor and tell the builder to take the Realtor\u2019s commission out of the price and start building the home.<\/li>\n<\/ol>\n\n\n
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    \"Photo<\/a>
    There’s foundation, framing, roofing, insulation, electrical, plumbing, and drywall before we even start to talk about flooring and fixtures.<\/figcaption><\/figure>\n<\/div>\n\n\n

    Is this something you’d feel comfortable doing? If so, please don’t call me. I don’t want clients like you. Hopefully, you’re a decent person who sees the dishonesty in this approach.<\/p>\n\n\n\n

    The idea of double pricing<\/strong> isn’t new, nor is it valid. The Bureau of Consumer Protection<\/a> is part of the Federal Trade Commission (FTC). This bureau wants consumers to have expert representation when making complex or expensive buying decisions. If a company (builder) is offering an incentive for you to not have that expert representation then they are running afoul of the FTC.  They also won’t be in business very long.<\/p>\n\n\n\n

    What’s new in Louisville new construction?<\/h2>\n\n\n\n

    The best thing for you to do is call me<\/a> with your specific criteria for a new home. Or, let’s meet over coffee. I’m buying!<\/p>\n\n\n\n

    Let me know what’s important to you and I can provide the best options that fit your situation.  If you’d like to browse some listings online, here are some links by county.<\/p>\n\n\n\n