The topic I want to lean into this month is… why you would want to hire a Realtor when buying a new construction home. Unfortunately, I have seen and heard of people walking into a builder’s office completely unrepresented, meaning they do not have a realtor. Some may think that they will get a deal by going directly to the builder or maybe they think a realtor isn’t necessary because they can see the model home through the builder’s sales representative. Let’s break down why you would want to hire a realtor EVEN when you are buying new construction.
When you arrive without a real estate professional to represent you, the price of the home does NOT change. For the people in the back, the builder is going to charge you the SAME PRICE, which is the market rate, regardless of having a realtor or not. What this means is that bringing a realtor to represent your best interests during this process is at absolutely no cost to you. Remember it is the builder that pays a commission fee to your realtor. If you do not bring a real estate broker or Realtor, the builder will simply keep the commission.
**Note, there are some exceptions to this rule when it comes to smaller builders or fully custom builds, where the builder does not offer a buyer’s agent commission. In this case, it is up to you to discuss with your agent and negotiate with them how they will be compensated, if at all.
The builder will have their own sales representative that may or may not be a licensed. They have the builder’s best interest in mind and is not going to go out of their way to provide you with counsel. It is their job to highlight why their product is the best. Depending on their level of experience and education, they may not be familiar with important laws and regulations that could impact you. If you come to the builder with representation, your real estate agent will help you distinguish between what the builder’s sales rep is trained to tell you versus what actually happens before, during, and after construction.
Regarding new build inspections, the city and county will conduct code inspections at different stages of construction. However, it is advantageous to have a third-party licensed inspection as well. The builder is not required and will often not keep you posted on when you can order your own inspection. Your real estate agent will work with the builder to navigate this process for you. If issues are identified, your realtor works with the builder to address them prior to closing. This will save you a lot of time, energy, and money later on.
Previous new-build clients have told me stories of neighbors who were unrepresented at the time of purchase. They experienced a miscommunication regarding timelines of construction, expectations of quality, and even issues with their loan. Your agent will be able to take a look at the market conditions, and past experiences with multiple builders, and lenders, and ask the right questions to help you set proper expectations. This can be incredibly important as you are often timing other important logistics such as movers, ending a previous lease, selling your previous home, etc.
Finally, you may have an agent representing you, but you are thinking you may not want to inconvenience them on a weekend when you are out shopping for new construction homes. This has happened to me. PLEASE NOTE that your agent, especially me, wants to earn their fee and make sure you get the best possible terms! They want to be there with you to ask the important questions, set expectations, and hold the builder accountable before, during, and after construction. The builder will not pay your agent if they do not see them with you.
This Forbes article, Steps To Buying A New Construction Home, agrees. Come prepared, come represented!
