Morgan: 4 new-homebuying myths debunked

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Dayv Morgan [File photo]

The real estate market in Maricopa is as hot as it’s been in more than a decade. To land the home you want, you need to have a strong knowledge of the market and move fast. It is especially important to work with a Realtor when looking to buy in a “seller’s” market like we have today.

A Realtor can advise you of local market conditions, pull records on comparable sales (“comps”) in the area to see how prices are trending, and provide you with expert knowledge of the local community.

It is wise to take your Realtor along when you begin looking at new homes as builders typically will not allow you to have an agent once you completed a registration form.

4 NEW-HOMEBUYING MYTHS

1. I will have to pay a commission if I am represented by a Realtor.

That is not the case. It is cost-free to use your own agent. Your agent’s commission is paid by the seller or builder.

2. I can get a lower price by not using a Realtor.

Sellers will not lower their asking price because a buyer purchases without an agent. In fact, the opposite can be true, as sellers or their agents see a buyer without a Realtor representing them and look for ways to take advantage. Your Realtor will provide expertise and services such as researching how long a home has been on the market and helping you negotiate the best possible price, allowances or concessions. Your Realtor may help you get additional upgrades, such as appliances or landscape packages.

3. It is not necessary to have a Realtor when you buy a brand-new home.

The sales agents at the model homes are employees for the builder. They represent the builder’s interests, not yours. A local agent can point out things about the community, its location and details such as HOA fees, amenities offered, the home’s orientation and exposure to the sun or proximity to the train tracks, road noise, and other factors only an agent with knowledge of the local community has.

4. It’s a brand-new home. It’s perfect!

When I moved to Maricopa in 2006, it was a housing boom and a strong seller’s market, very much like it is today. When I decided to buy a new home, I was at the mercy of the builder and had to agree to all their terms. Waiving a home inspection was one of the requirements. The sales representative convinced me  everything would be fine because the home came with a builder’s warranty. Twelve months later, the builder was bankrupt, corporate offices were closed, and any possibility of making a warranty claim was gone.

Fortunately for my family, the house had no structural issues, and we dodged that bullet. But I have heard countless stories of home inspectors finding major problems such as missing insulation in walls or attics, disconnected A/C ducts and missing roof tiles. Even national builders and licensed contractors can make mistakes, so it is important not to assume there will be issues.

Anything installed incorrectly, if not caught during the warranty period, could end up costing you hundreds or even thousands of dollars when it’s time for you to sell. The average home inspection costs only about $400 and it’s one of best insurance policies you can buy; it’s worth every penny for the peace of mind it will give you.


Dayv Morgan is a Maricopa Realtor and owner of HomeSmart Premier. He is a 15-year resident of the city.
 

This story was first published in the September edition of InMaricopa magazine.