Every week, we ask a real estate professional for their Short List, a collection of tips and recommendations on an essential topic in real estate. This week, we talked with John Holz, an agent with Keller Williams Realty Boston-Metro and a 24-year veteran of the construction industry, about the six things agent should know about new construction.
6. Check and make sure that the broker commission will be paid by the builder/seller. If not, that should be negotiated before hand or with the offer in writing, and brought to your client’s attention. Otherwise, you may end up working for free.
5. Choosing to buy a new construction home can be tricky if the home is not already built. If your client is viewing a model and then choosing a home to be built for them, make sure they understand what is included in the basic package, and what charges could arise when choosing upgrades. This could prevent any disappointment in the end.
4. To make sure your client is fully protected, you should be using a standard real estate contract, not one provided by the builder. A contract provided by the builder’s agent could be in favor of the builder and leave your client in an awkward position later down the road.
3. Determine what is included in the home warranty and how long the term of the warranty is for. It would be wise to have the client look it over with their attorney.
2. Though the home is brand new, you should still recommend a home inspection, because there are builders and subcontractors who may cut corners or made mistakes in their work. If anything, it would give peace of mind.
1. Make sure your client is aware of what condition the actual property is going to be left in. Rough Grade, No Grade, Grass, Sod, Etc. Not knowing until the end can be a shocker, realizing you now have a lot of work to do just to prepare for grass or such.
John Holz is an agent with Keller Williams Realty Boston-Metro and a 24-year veteran of the construction industry. For 13 years, John owned his own home improvement company (Holz Home Improvements Inc.), and he has worked with many builders, contractors and investors.