Do you need a Realtor if youre purchasing a new home?

Hi Heather,

I would absolutely recommend using a realtor during your negotiation with a Builder for new construction. I've personally worked with a lot of different Builders with Buyer clients of mine (and on the flip side, sold homes in which the Seller purchased new construction going directly through the Builder and lost money on the sell). A couple of things to consider:
1) Is the neighborhood a brand new development, an extension of a newer/recent development, or a neighborhood where the Builder is nearing completion and there are a mix of resale and new construction? The answer to this is extremely important when looking at list price and formulating a purchase price, considering most importantly, the appraisal!! As the owner of a residential appraisal company, we work frequently with new home communities. Many times they have access to comps/sales that aren't disclosed in the MLS. This is so important when looking at what price you want to be at in the neighborhood.
2) Builders aren't necessarily selling what they used to sell a couple of years ago. There are more inventory/spec homes on the market than there were before and typically there is more room to negotiate on these.
3) Is your purchase contingent on selling your current home? This makes a difference and you'll want to be informed of the specifics of the Builder's contingency contract.
4) You should be advised how the earnest money works on new construction, the new construction/Builder contract, inspection period, working with the Builder's Lender, etc. Builders are not going to divulge all this information. The sales associate is simply looking to get you contracted on a house and push their in house lender.

Please feel free to reach out with further questions. I'm always happy to help. I'd gladly share my experience I have with various Builders and my thoughts on the communities you are interested in.

Darby Grimmett / KW / darby@darbygrimmett.com / 936-827-9217

Hi Heather,
Great question... I'd answer "no" if you have bought and sold multiple homes and feel confident you understand the process and how to effectively negotiate.

If you are a new purchaser with limited experience... I'd defiantly tell you to find a solid Realtor. You want someone who actively works in the area your considering. That person should offer you input on things like... what makes one lot more desirable than another. Will I back to commercial or a water utility area? How long should I plan to live in the new home to build equity? What improvements are less expensive to do after I purchase the home? When you select those beautiful upgrades... you'll be paying a premium for them. Often using after market trades to do the work will save you considerable money. Best of success in your home buying quest... Debra ;)

Hi Heather. YES!!! I had a client contact me wanting to purchase new, had the builder, location and floor plan all picked out. After a little research, I found out the builder in the last 3 months had sold the same floor plan 4 times and all were $20,000 LESS than what he was about to pay. We ended up looking at a few 1-3 year old resale homes and also visited other builders that advertised a higher price range that what this buyer wanted to pay. I knew they would come down to the price this buyer needed, and whalaa! He purchased a better, bigger new construction home at a lower price. I worked with my client from contract, to selections, to multiple inspections, lender and insurance to final closing. And bonus...the builder paid my commissions so it was a FREE service to the Buyer. Let us know how we can help you find your next home. Mark McNitt, Bernstein Realty. 832-567-4357

Builders depend on realtors to bring them buyers, thus their sales price has the realtor commission already built in. The benefit of having a realtor represent you in a new construction or inventory home is the same benefit of having a realtor represent you in a resale purchase. The realtor is the expert and knows what to ask for to get you the best deal. Not using a realtor will not get you a lower sales price. Often times you will end up paying more and miss out on incentives/upgrades your realtor would know to ask for.

You can go without a realtor. there is no obligation. In a market like Houston where more than 90% of the properties are on HAR's MLS system, you will complicate your life a bit trying to see properties. The value a realtor adds:
1) He represents you and has access to non public data to help you make the best purchase/sell decision.
2) He has access to standard contracts and forms that are made to be fair to the consumer.
3) He should have some knowledge about real estate to guide you to the right house and save you time.

Many buyers assume that the builder’s rep will help them with the purchase of their new home. They also assume that working with the internal representation will result in getting a better deal on their purchase.

However, the builder’s rep is working for the builder..not for you! Their success relies on getting the best deal for the builder, who is their employer. There legally can be no discounts passed on to you if you don’t use a Realtor, there is no savings.

And when you use a Realtor, you are the employer!

It doesn't hurt to use one of us realtors it doesn't cost you anything the builder pays the realtor, we don't do much but it's good to have us look and listen over everything so in case you have questions. Some buyers don't use one cause they assume they will get charged or pay more for a home but it's not MOST builders I work around like for us to help buyers cause we help them sell there homes faster. Sometimes I say be Leary when someone says to not use one.

It's to your benefit to have a realtor to represent you. The builder will only look out for their bottom line. Whereas your realtor looks after "your" bottom line. It cost you nothing out of pocket to have a representative for yourself.

Absolutely. I am selling a house in the 400 range that my clients bought and did not use a Realtor. The builder over charged them so much and added so many fees that they can not see their home they have to live in it for two more years in order to break even. Also the builders Realtor is not your Realtor remember that and you will go far. It cost buyers $0.00 to have someone represent them and to make sure they are 1000% taken care of. Also check out the reviews from past clients when looking for a Realtor, it will help reassure you that he person you hire will not abandon you and will see everything through and be there afterwards. All Houston and aurrounding area Realtors have verified and reliable reviews on Har.com if your look hem up under find a professional or click on their name. Also there are reviews on where they have sold homes. Good luck, hope this helps, if you have anymore questions let me know.

From my experience working as a builder the answer is no you don't "have to" have a realtor... But the better question is why would you not want one?? The builder won't give you a discount for not using one, and you don't pay your Realtor, the builder does... So going without a Realtor, you are doing nothing but putting yourself at a disadvantage, and will not be able to truly feel confident that you got the best value.

But no... You don't have to have a Realtor to buy a new home from a builder.