Do I Need a Realtor If I’m Buying A New Home From A Builder?
– September 15, 2013 10:34 pm
Yes, Yes,… Did I say YES!?
New construction is plentiful in our area once again and you may be considering buying a newly built home. New construction has plenty of advantages, but many buyers make the false assumption that they can save money by not using a Realtor when purchasing a new home. This is a huge misconception!
Too often buyers assume that the builder’s rep is the only person that can 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 and legally there can be no discounts passed on to you if you don’t use a Realtor. There is no savings or rebates. But when you use a Realtor, you are the employer and they represent and work for you.
Buyers may not know that the commission for buyer representation is legally part of the purchase price. If you are not using your own Realtor, the builder simply receives an extra 3% from your purchase. Basically, it’s free for you to use the services of a Realtor. Free!
Buyers also may not know that the builder is not required to have a licensed agent working for them, and many don’t. The Builders agent or sales rep looks out for the BUILDERS best interests. Sometimes the best interests are the same for buyer and builder, but just as many times they are NOT.
Hopefully you’re seeing the value in using your Realtor.
Your Realtor understands the ins and outs of home buying process and can work on your behalf to negotiate a better deal, get upgrades, or whatever is in your best buying interest. Most people wouldn’t consider buying an existing home without a Realtor to represent them. Therefore, why consider going through the even more stressful and complicated process of building a home without someone on your side? In most cases, you are committing to something that doesn’t even exist yet.
Here’s a helpful list – follow these “to dos” when working with a builder to have the best experience.
– Have a plan for your purchasing experience
– Hire a Realtor to help smoothly implement and navigate you plan
– Don’t sign anything until you’ve worked out every detail
– Get a home inspection every time
– Don’t agree to use the builder’s lender right away
– Research the builder for their product reviews and service reputation
– Research city plans to see what your community will look like in the future.
….Oh yeah… Hire a Realtor.