Obviously I’m biased…but hear me out. If you are in the process of looking
for a new house and you find yourself wandering into show homes on the
weekend…stop what you’re doing immediately and consult your
The main reason is quite simple really. THEY DON’T WORK FOR YOU!
Look, I have been in plenty of show homes in my day and most of the sales
staff are amazing, and they are a great resource for neighbourhood
information, they usually know the neighbourhood better than the people
who live there. However, at the end of the day they are an employee of a
company and they are being told what to do by the higher ups. This does
not mean they are looking to screw you over…quite the opposite, most
sales staff also get paid on commission so they want to help you, but like I
said they only have so much control over what they can and cannot do.
It doesn’t cost you any more money to have your REALTOR® involved.
This one is a bit of a hot topic, in my experience, some new home sales
staff will tell people that our commission simply gets added to the price of
the home, so they shouldn’t involve us. Not true, even if they say that…they
don’t have the ultimate deciding power…their manager or owner of the
company does. What really happens is that the sales person receives less
of a fee if a REALTOR® is involved.
The price of that brand new home may not reflect true market value. Home
builders have very tight profit margins…especially with the low Canadian
dollar these days. If they are selling a home at $450,000 that might be
because that’s what they need out of it to turn a profit…not necessarily
what its worth. It’s always a great idea to look at other homes in the area
that may be a year or two old to give that brand new home some context.
Whatever the price is…add $30,000. Now this is a bit of a general
statement but if you are buying a typical 2000+ square foot 2 storey home
and the landscaping, fencing, deck, window coverings, and appliances are
not included in the sale (which is very common) then you are looking at
$30,000 in additional cash out of pocket to complete it. Remember, not built
into the mortgage payment…cold hard cash out of pocket. Take that into
account when deciding to buy new or used.
Please understand that this is not meant to diminish or degrade new home
sales staff. I have several amazing relationships with builders; this is simply
meant to remind you that you should consult a professional who has your
best interests at heart. That is truly what this job is all about. I give advice
and make sure you are protected. I personally have been through the home
building process twice so I can also relate on a personal level and perhaps
share my experience with you. A brand new home is really amazing, and
when you find the right one, it can be very rewarding when you move in. Or
it could be a nightmare, and a massive stress in your life for the next
year…let me help you have the former experience.