I already own a lot through my family that I want to build a home on. Do I need to involve a realtor to start the home building process? I plan to live in the home after its built, so do I need a realtor at all?
Not at all.
Realtors are more like lawyers; their function is to facilitate the transaction of real estate, which is purchasing and selling, and to protect that process.
The only time a realtor is involved in a new construction build is for that function of buy and sell, such as with a development.
Now yes, many infringe on legal boundaries and like to promote certain builders and remodelers, and there are some bad seeds out there using their position to con persons into directions they need not go. i
To build a home, one needs a builder, and be certain to go through homes they have built, never hire site unseen.
No you don’t have to. But, you need one to find the location that you want to build the house on.
It’s an investment and you need to find the best deal out there. For that, a realtor can be a big help with making the right move.
No. You just need to hire an architect to create a set of plans.
Hi Mary,
I am a general contractor and a real estate agent in California - this question is right up my alley. Of course I am in CA and you are in Georgia so the laws in our states may vary, but they shouldn’t vary too drastically.
You do not need a realtor to build your home. However, in the process of designing your home, a realtor could help you in engineering the values of certain aspects of the home - ie designing the home to fit in with the neighborhood. A realtor should be able to tell you what value a bathroom, breakfast nook, or den would hold in comparison with the other homes in the neighborhood. This is all in relation to resale value. An example of designing a home incorrectly for a neighborhood would be building a mansion in a neighborhood of single story tract homes. While the cost of construction would be high, the resale value would probably not be there as a potential buyer for the neighborhood would not afford the mansion. The builder of the home would not reap the rewards of building an expensive home.
What you will need is a designer for your home. Depending on the size of the home (in CA it is based on height) you may need a licensed architect. A licensed engineer will probably also need to be involved. When searching for designer, I would be looking for a licensed architect that specializes in custom single family homes and has an eye for value engineering (where to spend and where to save). You may be able to find a firm that has structural engineering in house or can take care of that aspect for you. The less people involved in the design the better in my opinion because you will have fewer misunderstandings/confusions.
You want a design firm that will draw your house from the site plan through the finish material specifications. A general contractor will be more efficient if he/she has detailed plans. Like anything else, a good job starts with good prep work.
One other thing to discuss with your potential designers and general contractors is who will be taking care of the regulatory issues like the planning and building departments.
To get back to your original question, your time and money is better spent on designers than realtors when building a new home. Hope this helps!
Mary,
Hi, great question. The answer is no, you do not need a realtor to build a custom home. Actually, depending on where you live, you do not need a contractor. In some areas an owner is allowed to build his/her own home. In the area where I reside, one can build their own home just as long as they are building the home to live in, but I would check first before proceeding down that road. But hiring a contractor is the safest and easiest route to take for an owner who does not have the knowledge or the time.
According to zillow.com:
[ https://www.zillow.com/advice-thread/Why-do-I-need-a-realtor-to-build-a-costum-home/439100/ ]
Sunnyview, a longtime member of the forums at Zillow, said: “if you are building a custom home from scratch with your own architect, you do not really need an agent beyond maybe helping you find a lot to build on. However, if you are talking about buying a semi-custom home from an existing development from a builder, then I would not let the builder’s agent represent you. You are better off getting your own agent and a good RE attorney to review the contract.”