Buying New Construction: Why do I need a Realtor(R)

If you are interested in buying a new construction, the builder's agent will be ready to help you with the process. But make no mistake: You need your own Realtor® from the get-go. Even if it seems like plug and play to sign up with the builder's on-site agent, you're going to want someone representing your side of the deal.

What is a builder's agent?

When you buy a new construction, the home's builder is considered the seller, and the agent representing the builder is called the builder's agent.

REALTORS(R) For Buyer's : Are They Free and What Are They?

The builder’s agent will always have the builder's best interest in mind. It is their fiduciary duty.

Why you should hire your own real estate agent

It's a good idea to have your Realtor® accompany you on your first visit to the new construction. Why? Some builders might refuse to pay your agent a commission if you don’t register the agent the first time you visit the home on a new construction site simply because they don't want to have to answer to someone who has more real estate knowledge than a buyer. It makes their job harder when they have to answer to a Realtor® on your behalf.

Going into any transaction without your representation, new construction or resale, is like going to court and having the prosecuting attorney defend you on your behalf. It is a conflict of interest.

Your Realtor's® job is to help you get the most value for your money, with the least hassle and frustration.

When buying new construction, here’s what your real estate agent will help you with that you might miss out on if you stick with the builder’s agent:

• Negotiating extras: Want upgraded counters or appliances in that new home? Your Realtor® can help you with all those extra perks, amenities, and upgrades. We can often negotiate with the builder on things like paint color or even the style of garage door, especially if the housing development is in the beginning stages.
• Recommending financing: A builder typically will have a “preferred” lender that it will try to steer you to, but your Realtor® can help make sure that you’re getting the mortgage that works best for your situation. Shopping around is always wise, and you don’t want the builder’s agent pressuring you into using their suggested professional unless it’s right for you.
• Overseeing a home inspection: Tempted to forgo a home inspection in new construction? Don’t do it. The number and severity of new-home defects often rival resale home problems. I have a very good friend who is currently in a law suit with a well named high end builder they purchased from before we met because of a mold issue. They have been uprooted from their home and now live in a an apartment until the law suit is over. This has been on going for two years now. Ventilation, misuse of the wrong products, and a.c. mechanics when installed are to blame among other things. The builder’s agent is unlikely to push for or offer up an inspection, so it's up to you and your real estate agent to make it happen.
• Keeping an eye on the stages of construction:  Most buyers don't have the time to check up on their home while it is being built or while it is in make ready due to schoo, work, kids, etc. Your Realtor® will have the time to stop by 'unannounced' to make sure everything is being done according to your specific expectations.

How the builder's agent can help you

All that said, the builder's agent can be a valuable resource for learning about your potential new home.

They are knowledgeable about the construction and available amenities, as well as the housing development and general community vibe. You can rely on the builder's agent for background information—just don’t make this individual your sole point of contact on the buying and selling process.

Everyone wants to walk away from buying a home—whether it be a new construction or not—with peace of mind. Having a real estate agent in your corner will help facilitate that.

If you are in the market to purchase a new builder home or are ready to build, please give me a call contact me now