Must-haves when buying from builder

Flickr photo by sciondriver.

Q: I am a first-time homebuyer in the New York metro area. I am considering purchasing a new condo in one of the boroughs, where most of what I am looking at is new construction. If I am buying a new-construction condo, is there any real need or benefit to having a Realtor represent me?

A: Short answer? Yes. Now for the longer answer.

Mindset Management

Here's a hypothetical. You're a novice poker player -- in fact, you've never played a game before in life. And you're playing in the World Series Olympiad Playoffs (yes, I'm aware of my sports metaphor butchery) against The Greatest Poker Player of All Time, or at least a champion player who does this all day long, and makes millions every year doing it.

And the stakes are high -- you're betting your house, and a big chunk of cash (think: downpayment money) on the outcome of the game.

But here's the catch: Your opponent, the guy across the table, is willing to pay for you to have another experienced poker player sit on your side of the table and advise you on how to protect your stakes, play by play.

Now, of course, we'd all like to think that the relationship between builder and buyer is less adversarial than that between opponents in a poker game. And in an ideal world it is -- I know a bunch of builders, and many of them have a deep-seated drive to make their homes' owners happy. But, as you might have figured out by now, this is not an ideal world.

Let's get clear on one thing: You will be represented by someone. Some person will necessarily be the go-between that communicates your wants and needs to the builder. It might be an agent or employee of the builder, who is paid by the builder -- at least in part -- to upsell you and to get things done in the builder's best interests.

Or, it could be someone who works for you, who has a legal and ethical and moral mandate to zealously advocate for your best interests, not the builder's. You get to choose: representation by design or representation by default. And the bonus is that, most of the time, if you play by the rules, the builder will pay for you to have a representative you choose, by design, to be your advocate. ...CONTINUED

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