Asymmetric information is defined as information failure, where one party to an economic transaction possesses greater material knowledge than the other party. In today’s real estate market, consumers are overloaded with information. The ability to dissect, organize, and apply that information in your favor in a transaction amounting to hundreds of thousands of dollars will give you that extra edge to ensure your interest and money are being looked after. Information is key. A good real estate professional will ensure that when you engage the builder, you will not experience asymmetry.
In Ave Maria Town, consumers can choose to buy a home from Pulte Homes, CC Homes, or an existing homeowner on the resale market. The common problem people face when going unrepresented with the builder is that they cannot distinguish the builders representations from the real estate market as a whole. The builder’s sales associate can only sell their builder’s product. From a sales standpoint, they do not want you to consider any other option. Their perspective is understandably slanted. A successful, knowledgeable agent will be able to navigate you through the sales process to ensure you are able to weigh what your options are against what the builder is telling you.
It is not necessarily the case that your objectives will align with the builder’s product you are considering. It may be the case that you are more interested in making sure that your home has structural upgrades for the long term, like a pool or large overhead lanai. In some cases, there might be a resale on the market ripe for your consideration that is priced significantly less. While the Builder’s associate will not provide you with that information, your successful agent representing your interests will. Similarly, your expectations may not necessarily be managed appropriately without the advice and guidance of your agent. You may fall in love with a look of a model home, but not fully realize that the model home with it’s upgrades might be priced $200,000 over the home’s sticker price. In such cases, it would probably be best
that you visit some available resales – both to see what the home can look like without all the bells and whistles, and to determine whether you find it in your best interest to build new or to perhaps consider a resale where you might gain some windfall on those same upgrades. It is contrary to the Builder’s interest for you to be armed with this information, but it is not about the builder – it is about you, and making sure you have all the necessary information before you to ensure you make an informed decision.
There are also certain tricks of the trade too to help you out during the process. Pulte Homes and CC Homes build good homes, but they are human and make mistakes. My customers have seen the Builder perform, in some instances, shoddy workmanship. When you are buying something that amounts to hundreds of thousands of dollars, this is unacceptable and I assist my customers in making sure it is corrected. One time the Builder built my customer’s home backwards- the flipped version of what they contracted for. While I cannot pull a rabbit out of a hat, I was their to ensure that my customers were fully equipped with the information necessary to weigh their options and proceed accordingly. Always get a home inspection. It will pay for itself every time. Paying cash? Put your money down with Pulte and they will accord you 2% interest during the build time to apply towards your closing costs. Make sure the builder’s lender gives you a rate that matches their competitors. The list goes on.
A common misperception is that people will save money going unrepresented with the Builder. This is simply not the case. Your agent’s fee is priced into the sticker price of the new construction home. It will not cost you a penny more and a good agent will help you find savings in the process. Real estate transactions are the big time- tens of thousands of dollars can be left on the table at any time. For example, I know of one person who bought a home unrepresented who had buyers regret when afterwards she found out she could have bought the same house in Del Webb Bellera for $20,000 less. Had she used a knowledgeable agent that was looking out for her, she would likely have avoided making that mistake.
The Builders are sharp, fast, and heavy hitting. Asymmetrical Information- make sure it is not something you, a family member or a friend face when engaging them!