Written by Tammie White, Principal Broker/Owner of Franklin Homes Realty LLC
Franklin Homes Realty LLC is often contacted by buyers who are looking to purchase a new construction home in Westhaven. As a matter of fact, our Westhaven page is the most visited page on our website.
The question always comes up whether it is advantageous to use a buyer's agent when buying new construction homes in Westhaven. There are many reasons why you should have your own agent during any home purchase but the primary reason is to have someone who represents your interest and protects you as a buyer. This is likely the most expensive purchase you will ever make. You want to make sure you have adequate protection and a buyer's agent provides that.
For most buyers, they are more concerned about their bottomline than they are about representation. If it doesn't hit them in their pocketbook, they don't really care about having their own agent.
With this in mind, Franklin Homes Realty LLC decided to do a little research. Since January 1, 2014, a total of 71 new construction homes sold in Westhaven. Of that 71 homes, 59 or 83% of buyers had representation through a buyer's agent. That leaves just 12 buyers who were unrepresented and used a Westhaven Realty on-site agent.
We were surprised at what we found and we're sure you will be too.
Buyers who were represented and used their own buyer's agent:
- Closed sales 1/1/14 to present: 59
- Average list price: $536,277
- Average sold price: $544,650
- Median home price: $544,000
- Average sales price to list price ratio: 101.6%
- Average days on market: 113
- Average size of home: 2,895 sq. ft.
- Average per square foot price: $188
Buyers who were unrepresented and used the Westhaven Realty on-site agent:
- Closed sales 1/1/14 to present: 12
- Average list price: $556,860
- Average sold price: $596,451
- Median home price: $532,239
- Average sales price to list price ratio: 107.1%
- Average days on market: 118
- Average size of home: 2,948
- Average per square foot price: $202
What do these numbers tell us about represented buyers vs. unrepresented buyers?
The sales price to list price ratio is 5.7% LOWER for those buyers who are using a buyer's agent. If we take that 5.7% and multiply it by the median home price of $544,000, that is a savings of $31,000. How can that be? Are represented buyers really saving $31,000?
There are two possible explanations for this based upon the data provided:
1. The represented buyers have been able to negotiate a better price on their home purchase.
2. The unrepresented buyers are adding significant upgrades to their homes.
Since the average square footage of the homes purchased are very similar, it's easy to see that the unrepresented buyers aren't getting more square footage for their price. However, they are spending $14 more per square foot for their houses. We don't know what accounts for this additional cost. Did they spend that on upgrades or did they negotiate poorly?
What should you take away from this analysis?
1. Using a buyer's agent costs you absolutely nothing. Their commission is paid by Westhaven Realty. They have already included the buyer's agent fee into their base price. With 83% of their sales coming from agents this year, it's easy to see why they do that and based upon the numbers, buyers with representation fared better on price.
2. Using a buyer's agent may save you 5.7%. Now, that doesn't necessarily mean you're going to get a $544,000 for $31,000 less but you may not spend $31,000 more on that house.
Based upon this analysis, there is absolute proof there is an advantage to using a buyer's agent when purchasing Westhaven new construction homes.
There are a couple of things you should know about Westhaven Realty. Your buyer's agent MUST BE PRESENT at your first visit to the community. They WILL NOT ALLOW you to come back with a buyer's agent later to negotiate a better price for you. Be sure to contact your buyer's agent prior to visiting Westhaven the first time. It will actually save you money by doing so.
Franklin Homes Realty LLC is the obvious choice as a buyer's agent for a Westhaven new construction home purchase in Franklin TN. We have worked closely with other Westhaven buyers and are very familiar with the floor plans available. For a complete list of the available Westhaven new construction homes,
Call Franklin Homes Realty LLC at (615) 495-0752!
About Tammie White, Franklin TN REALTOR®
Tammie White is a REALTOR® and Principal Broker/Owner of Franklin Homes Realty LLC in Franklin TN. Tammie works with relocation buyers looking to purchase a home in Franklin and the surrounding Williamson County area. She understands the way buyers search for homes making her an invaluable asset to Franklin home sellers. Tammie's website, www.FranklinHomesRealty.com, has become the premiere search tool for buyers relocating to Franklin TN. She has been writing a real estate blog since 2009 and quoted in various publications including the LA Times, Skype.com, The Tennessean and Williamson Source.