Expert: Karyn Foley - 4/2/2009

Question
We are looking at building a new house, and we have been engaged with a builder (who is represented by realtors) designing a floor plan.  Before starting on the plans, we told the builder what our budget was, and he claims to be watching this.

That said, do you recommend we have a realtor?  We have thought it to be in our favor as he/she would know the housing market and what the "Going price" is.  Also, is it possible the house price would go up if we did hire an agent at this time?  The agent representing the builder indicated this may happen.  

Answer
Dear Rick:
 It is always a good idea to be represented by a party who acts as your advocate!  I do not have a copy of your contract, but how can you do something without specific costs or final price - at least an estimate.  YOu chance having the price go considerably higher before you are even finished.  If you are buying in a particular development, there would be prices listed for all the homes and lots, and only extra upgrades would be added to your price.  It is taking a financial chance.  I would rather see you deal with a real estate attorney than an agent at this point. Without legal assistance and contract addendums protecting you, you might end up laying out advance money you might never see again.  Take an hour and have a conference with a real estate attorney to get your best options so you know what direction to take.
 I wish you good luck, and let me know what happens.
Karyn Foley