Buying New Construction? Why You Need Your Own Real Estate Agent to Represent You

Dated: February 14 2019

Views: 245

An obvious way to find a new construction home is to go to the newly developing subdivision and walk through the model during the hours it is open.  But you may want to know that by doing so, you could jeopardize your chance to have a Realtor represent you as a buyer in the transaction if you ever decide to purchase a home in that development.  The reason for this is unclear because there are some Builders who do cooperate with Realtors.  But there are still Builders out there who will not allow your Realtor to be part of the transaction if you previously entered the model and perhaps even signed in with the Builder’s representative.  In fact, there are Builders’ reps who, if they have even seen you in the model before and may not have gotten your name or contact information, still will not allow your Realtor to later be part of the transaction.  It becomes worse if you spend any time with the Builder or their representatives, even if you are just asking questions and gathering brochures. The Builder may “claim” you as his customer and your Realtor, who would have been representing you, will not be able to look out for your best interests or negotiate on your behalf.  Even if you have a signed Buyers Agency Agreement with your Realtor, this is not enforceable with Builders.

So, what should you do?  If you want legal representation in a new construction transaction, you must have your Realtor accompany you anytime you want to see model homes, or want to have a meeting with a Builder or their representative.  If you choose not to have representation, know that the Builder’s rep may be friendly and helpful to you, but he/she works for and represents the Builder.  Their goal is not to get you the best deal on the home, or have a few extras included with your new build. 

Only your Realtor who represents you would be there to negotiate, to read the fine print in the Builders contract and to see the process through to the end.  So you might assume if you are not using the services of your own Realtor that the Builder will give you a discounted price on the home.  That does not happen though.  If the Builder does not have to pay a real estate commission, he/she keeps the extra profit.

But what if you decide to buy new construction without your own Realtor?  Can you do that?  Of course, but ask yourself, how do I benefit? Why would I want to..??

Blog author image

Linda Fennell

Never before has it been as important to work with a knowledgeable Realtor during your real estate transaction. Today's housing industry is more complex, and requires the guidance of an educated prof....

Latest Blog Posts

Home for Sale - 5868 Orchard St - Awesome Lake House

Your search stops here! This well cared for North Dease Lake House has all the modern conveniences but still provides the "up north" feeling! Over 60 feet of sandy frontage on this quiet, yet fun,

Read More

Home for Sale - 31265 Iroquois Dr - Completely Renovated

Completely renovated North Warren ranch! Home backs to ITC property so no neighbors behind you and a large yard to garden, have a pool, etc. New roof (2018), New Pella & windows throughout &

Read More

Duplex for Lease - 20 Ensley St - 2 Bdrm Duplex

2 bedroom duplex recently was refreshed with a fresh coat of paint and thorough cleaning... this home exudes charm and cleanliness. Enjoy the proximity to village conveniences such as Scripters,

Read More

Home for Sale - 2668 Silverside - Lakeside Sanctuary

Welcome to your lakeside sanctuary! Nestled on the serene shores of the private, all sports Silver Lake, this exquisite property offers the perfect blend of luxury, comfort, and natural beauty. Step

Read More