Developers in South Florida continue to build new and exciting projects, mostly in the waterfront condominium category. Understanding the differences between the various projects and the developers behind them is a full time job. Buyers of new construction can be overwhelmed by beautiful sales offices and impressive marketing materials, making it difficult to determine which project is truly right for them. Many buyers believe they do not need their own broker for purchasing new construction, but nothing could be further from the truth. Consider these points and make sure you have a local broker and new construction specialist on your side who understands the marketplace and is looking out for your best interests.
- Developers employ other real estate brokers and salaried salespeople who represent them and look out for the developer’s best interest. It is important for you to have someone looking out for your best interest too. Besides, on-site salespeople love working with buyer brokers because we we handle a lot of the buyer questions and issues before visiting the site. They depend on us to bring our buyers to their projects and many of them move from one project to the next, so relationships are key to their livelihood.
- Inventory and list prices are constantly changing. You need someone in the local market who can track these changes and report to you in a timely manner. We have relationships with salespeople at many of the projects who like to keep us happy and “in the loop”. In addition, we do proactive calls to each sales center for regular updates.
- There is no reason not to have an experienced buyer agent on your side. If you buy new construction without an agent don’t expect the builder to reduce the price by our commission. Developers do not like low comparable sales in the public record and most refuse to negotiate. However, you may be able to get other incentives from the developer and it is our job to find out what incentives are possible and negotiate those for you.
- Developers offer generous commissions and incentives to buyer brokers, and in some cases these fees can be almost double what we earn on resale properties. While this may deter some brokers from presenting alternative opportunities, we believe it is our job to make sure you understand everything that is available in our marketplace. Considering resale opportunities before buying that new condo should be part of your plan.
- For out of town buyers it is especially important to have someone on the ground in the local market. We are out in the field driving by all the local projects on a regular basis and can report back to you with any relevant updates. Once you make a purchase we will keep an eye on the project, and your unit, and provide you with constant construction updates.
- While we always recommend that you have the developer’s purchase contract reviewed by an attorney, we can be your first set of eyes on the contract and point out potential issues for you. While contract changes are rarely approved by developers and their attorneys, we can sometimes suggest alternative solutions to issues you may have with the developer’s contract.
- Once you are under contract on a particular unit it is our job to stay on top of all deadlines, account for escrow deposits, arrange for inspections (yes, we recommend an inspection prior to closing) and reviewing all paperwork and documents related to your transaction. If you plan to finance your transaction we can provide a list of recommended mortgage companies for you to interview.