Realtor’s Guide: Buying from a Builder vs. a Seller

Does this painful conversation feel familiar to you?

nh realtors guide home buyingSeller: “I paid xx dollars for this house in 2006, so that’s what I want to get back for it.” Buyer’s Agent: “Unfortunately, housing prices have dropped substantially since then, and there are also xx dollars in repairs and an upgraded kitchen needed for your home. My buyer is willing to pay xx less than your asking price”. Seller: “I disagree, and the kitchen is just fine the way it is. I’ve been using it for years”. Buyer’s Agent [throwing up hands in despair]: “Well, then I guess we can’t come to an agreement.” {And the search continues….}

The current real estate market is tumultuous, and emotions are high for both sellers and buyers. With the abundance of information available to home buyers, and the media attention focused on the theme of a ‘buyer’s market’, there is a general feeling that they can get every feature and amenity they want, at a reduced rate, and that options are abundant. The reality, as most NH real estate agents understand all too well, is that inventory levels are incredibly low for existing homes, and there aren’t many options available for most buyers.

The upside to this situation is that with new home construction, there is plenty of inventory available in very desirable areas, and many homes can be customized with features and amenities to meet even the most particular buyer’s needs. Working with a developer means that you don’t have to negotiate around the emotional issues faced by buyers whose homes have lost value in the market’s downturn, or who have perhaps invested a substantial amount in remodeling efforts that didn’t result in a higher return on investment. You don’t have to worry about what issues might be hiding in areas where they can’t been seen, or which expensive appliances might be on their last legs. You don’t need to spend weeks or months arguing over repair costs or the timing of a closing.

In general, when closing a real estate deal with a builder as opposed to with an individual seller, your job as a real estate agent is much easier and your client’s options are plentiful. To learn more about the current NH housing market, inventory levels, and the differences between buying from builders vs. sellers, download our complete (and free) Guide to Buying a Home, and pass it along to your clients; they’ll thank you for it!