One avenue many buyers are turning to is new construction, but get ready for a little sticker shock. Land prices, material prices, labor prices are up across the board and buyers of new construction often get stuck at closing for significant costs that traditionally are paid by the seller here in Palm Beach County. New construction is an option, but it’s not an inexpensive one.
As we tell anyone looking for real estate services of any kind, get educated, interview brokers, ask questions and make informed decisions. Taking that little bit of time to be informed is imperative if you are looking to be represented at the very highest levels while still getting the best value.
The money involved in new construction is big, as are the commissions offered by the builders. Consider that, as of today, the median price of all single-family homes sold to date this year in the Northern Palm Beaches is $565,000. If you just look at those homes built in 2020 that number soars to over a million dollars. Real estate brokers make more on news construction as the numbers are much higher.
Paradise Sharks has always looked at the real estate transaction a little different than most brokers. We look at the time we need to spend on a particular transaction and what we need to charge that particular client and provide them the service they deserve. Historically, with new home construction, we typically spend far less time on a transaction as there are far fewer details to deal with. Instead of showing a buyer homes in a larger geographic area, many times you visit a single neighborhood and look at models and lot locations. Negotiating prices with many larger developers is not something that is typically done as they work with list prices and reducing them for a single buyer sets a bad precedent. Most developers insist on writing their own contracts, many provide great financial benefits for dealing with their lender, there typically is not an inspection to deal with, there are typically fewer issues, far less behind the scenes work and minimal drama to deal with. It’s far easier on the broker representing the buyer on these sales in the majority of cases.
It makes sense that if it’s easier, if it takes less time for the broker there should be a benefit to the buyer. There may be to buyers who ask questions and interview brokers. Many new construction communities still offer 3% co-broke commissions that have been virtually disappearing in the resale market in the Jupiter area. While we are seeing that shift as well, there usually still is more money on the table for real estate brokers in the new home communities.
Paradise Sharks believes in giving back. We don’t have to send large franchise fees off to faraway lands, we don’t have a broker at the closing table taking a cut of our commissions, we are different and we love to give back, so we do. In new construction communities we typically give 50% of our commission back to to our clients at closing as our little way of saying thank you.
But, as we also say, there are two sides to value and you don’t want to just look at the money as you really do not want to overlook service and market knowledge. Especially in new construction. We have worked in new home communities and know the ropes. Buyers need to be represented. They need to know why that western facing lot will affect their future value, they need to understand the builder’s contract, the new construction process and why that agent working in the sales office is not working for them.
So, to save lots of money on Jupiter new construction, or new construction anywhere in the Northern Palm Beaches, just pick up the phone, interview brokers and find out what they are going to do for you. If you ask Paradise Sharks, you’ll hear how we will take you to the showroom, or showrooms, that may fit your needs, we will make sure you are aware of things the builder's representative may not tell you and most likely you will not only make an informed decision but you’ll also get a great credit at closing. We have given client’s credits at closing in excess of $20,000 on new construction and we’d love to save you money as well. If we can ever be of assistance just let us know at;
email@example.com or 561.308.0175.