Should I Use An Agent On A New Construction Home?
Just yesterday, another real estate agent asked me to sell her in-laws on why they should use a licensed real estate to represent them on the purchase of a new construction home. Here’s what I told her….
The idea of using real estate agent to buy new construction does not pop into everyone’s heads. It’s just not on their radar. Like buying a new car – one can walk blindly into the dealership (and likely over pay) or one can use a broker who knows how the game is played secure you a fair deal. The broker gets paid by the dealership (not you). Everybody wins.
Save Money By Not Using An Agent? It’s The Complete Opposite!
What you need to get out of your head is that you’ll save money by not using an agent. I think that it’s the complete opposite. I have yet to meet a builder who discounts the base price of a home (or their options/upgrades) if they do not have to pay a real estate agency commission. Nor have I seen the builder’s salespeople get paid more if the buyer does not have an agent. Most builders include real estate commissions in their base pricing and see you not having one as a margin bonus and the potential to upsell.
A Real Estate Agent With New Construction Experience Is Worth her/his Weight In Gold.
A real estate agent with new construction experience is worth her/his weight in gold. The builder’s representative works for the builder – Not you! Though you can expect to receive fair and honest treatment, you may not get full disclosure. Some builder’s use licensed real estate agents to sell their homes. Many do not. Ask yourself why not.
In good markets, builder’s discount very little. There’s no need. So, I add little value there. When the market is not so hot, my ability to negotiate is much stronger. No duh, right? However, as an agent who has been involved with close to 200 new construction/renovation sales, I educate my clients on construction quality, lot selection, and smart upgrade selections. I help them decide on one builder verses another. I keep an eye on the building process and communicate with the builder when need be. I’m there for the construction meetings and walk throughs and advocate for my clients along the way. What might be acceptable to the builder may not be acceptable to us.
“Like buying a new car – one can walk blindly into the dealership (and likely over pay) or one can use a broker who knows how the game is played secure you a fair deal. The broker gets paid by the dealership (not you). Everybody wins.”
So, if all of this is FREE to you, why wouldn’t you use a real estate agent to buy your new home?
Let’s take this one step further by suggesting that it’s a no brainer to use an experienced licensed real estate agent for any home purchase. Again, it costs you nothing and could save you thousands of dollars and truck loads of regret.
If the Seller is represented, you’re at a distinct disadvantage not being represented. You’re supposed to get fair and honest treatment. That’s it. It’s like defending yourself in court and going up against a seasoned prosecuting attorney. How’s that going to work out for you?
Bottom line – the odds of you saving money or having your best interests protected when you are not represented by a, experienced licensed real estate agent are slim – at best. There are too many things that can come up during the transaction make aligning yourself with an experienced licensed real estate agent one of the smartest decisions you’ll make during the home buying process.