Got 'New Dev' Dreams?
BUYING NEW CONSTRUCTION
Why Buying New Construction Is Different Than Buying 'Re-Sale'
Are you dreaming of owning a brand new, never-lived-in, newly-built home, or maybe a luxury condominium in an urban high rise building? We can help! But it's important that you reach out to us BEFORE you call that sales office.
You CAN and SHOULD have your own representation when you work with a developer Seller. Bay Area Local Real Estate Agents have represented many Buyers who have purchased 'new dev' properties, especially in SF or in the East Bay. You can ask for our Exclusive New Development Buyer's Guide, below.
Typically, new construction projects built by developers list their offerings in phases, via a website and an on-site sales office, with salaried agents who work for the developer. Buyers might begin on-line by looking at the project's marketing website; the next step is to visit the sales office; if possible, you'll tour the actual site or building and maybe a 'model' unit that has been staged (and probably decked out with all of the available amenities). The developer's salesperson provides details on available inventory, floorplans, amenities, finishes, upgrade costs and asking prices.
What many Buyers don't realize, however, that - just like a resale purchase - it is in your best interest to have your own representation. Those agents who staff the sales office are working for the Seller. As a Buyer, there is nothing stopping you from bringing in your own Buyer's Agent who will act specifically on your behalf. Why wouldn't you want someone who is looking out for you, working for you instead of directly for the developer?
If you have your own representation, you might just get a better deal when it comes to adding upgrades and finishes. Chances are that your Buyer's Agent who is helping you is already familiar with what incentives that sales office has been offering to other Buyers. Think about this - developers don't advertise all of their inventory; in fact, they advertise just enough to get potential Buyers in the door. Usually, they have many, if not hundreds, of upcoming offerings in that subdivision or building. The asking prices depend on where they are in their Phases: is it Phase One, with a lot more inventory to come, or has the project already almost sold out and the have 'close-out' offerings? Are they offering incentives to Buyers in the form of credits, finishes, appliances, pre-paid HOA dues, etc. in order to move some inventory?
Our Bay Area Local Agents are typically already familiar with the new dev project or building, because once the sales office opens up, those developers offer sneak preview tours to the agent community and provide us with pricing details, floorplans, and inside information such as perks, incentives, amenities, information on future release dates for upcoming Phases, etc.
This means that the chances are high that as your local resource, we've already visited the site, seen the model units, know which floorplans are the most desirable and also know how motivated those developers are to sell their inventory at any given time. Some of the information that we might be able to tell you that the sales office may not tell you include price discounts, perks, upgrades, credits or other incentives such as pre-paid HOA dues, free parking, etc. that the sales office is not publicly advertising.
Bay Area Local Real Estate has created an entire New Development Buyer's Guide that has detailed information on what to expect when you decide to buy brand-new construction.
Some of the topics that are in our New Dev Buyer's Guide include: