Why Hire an Agent When Buying New Construction?

Many home buyers mistakenly treat shopping for a new construction home like shopping for a new car. You follow the signs posted around town or visit the builder’s website to see what they have on the lot (literally), and then head over to see the product in person. Taking a tour of the model home is similar to test driving a car, and if you like the ride you start talking numbers. And, like with a new car, you could have a custom home built to order, but that would be much more expensive, or you can settle for what’s already been produced. Like buying a new car, when it comes time to talk finances you’re usually at a disadvantage in the negotiation. Homebuilding is even less transparent about what the builder paid to manufacture the home, or what they’re willing to make.

So how do buyers get the best deal on a new construction home and enter the process armed with information? Like 89% of home buyers did in 2019, use a Realtor! According to the National Association of Realtors 2019 Profile of Home Buyers and Sellers, homebuyers overwhelmingly choose to work with a Realtor and 87% found their Realtor to be a very useful information source. Why would a home buyer abandon that resource just because they’re buying from a builder?

Usually, it’s ignorance of the home builder’s policies, or it’s a lack of planning. You just wander in and get swept up in the moment.

Many people assume they can’t bring their own Realtor to a builder showroom, but in reality, Realtors work with builders all the time. Builder representatives know Realtors are the direct link to great buyers and they are happy to compensate us for bringing a buyer. The catch is the buyer has to bring a Realtor in at the first visit. Otherwise, there can be conflict over who really is responsible for attracting the buyer.

Three Things Your Realtor Can Do, But a Builder’s Rep Can’t

Represent Your Interests

A builder’s representative is exactly that. They are employed by the builder to sell the builder’s homes. They owe you, the public honesty and fairness, but they have a fiduciary responsibility only to the builder. A Realtor knows housing law, can help point out opportunities, and can help hold the builder to the written agreement.

Show You More Homes

A builder’s representative is knowledgeable about one product, the one they’re trying to sell. If you want to look at re-sale homes or new homes by other builders, only your Realtor can help with that.

Negotiate With Knowledge

A builder’s representative works in one development full-time. They are not out shopping with their own buyer clients, taking the pulse of the re-sale market and other builders’ communities regularly. Your Realtor is more likely to know when there is an opening to negotiate, whether that be on price, terms, or additional inclusions. Does that mean you’ll get a deal? Maybe not, depending on the market pace for that product, but if there’s a deal to be had, your Realtor is likely to know.

So if you’re considering buying a new construction home, DO work with a Realtor throughout the journey. There’s no cost to you, and you deserve someone representing your interests throughout the deal.