New Home Construction Purchases

It is not beneficial for a home buyer to enter into a new construction contract without an experienced real estate agent and subject themselves to having no representation. The advantages of using a skilled buyer’s broker are many. The fact that having buyer agent representation is often FREE cannot be repeated often enough. A buyer’s agent can help the purchaser to save money by assisting in everything from contract negotiations to upgrade selections.

Remember that the onsite builder’s agent represents the builder/developer. There is a listing contract in place that specifies the agent’s duties and the commission paid by the builder. When an unrepresented buyer contracts a home, the commission agreed upon does not change, it simply reflects the listing broker (site agent) receiving both sides of the commission.

The site agent is legally bound to represent the best interests of the builder, not the home buyer. They are expected to work for the best interest of their client, the builder/developer. This is consistent throughout the course of the build; the builder is their client, the buyer is their customer.

Most new home agents welcome experienced buyer agents. A few reasons include:

• Site agents want to sell homes, not handle every aspect of the buyer’s transaction for months after the contract.
• Site agents find it much easier to deal with another agent as opposed to directly with a buyer.
• Buyer agents often handle questions and potential issues long before the site agent is called.
• Site agents depend on agents in the field to sell homes – nothing is better than word of mouth advertising for a builder. And when it’s a good or bad experience, agents talk.
• An experienced buyer’s agent knows how to present requests and negotiate. Many builders are inflexible, but a good agent can work with the site agent to get things done that might not normally happen.
• An experienced buyer’s agent knows how to read and explain a new construction contract. While the site agent can, they will not offer options for things that become sticking points.
• A buyer’s agent will be there even after the home closes. It is routine for issues to arise during the first year of a new home.
• An experienced buyer’s agent will have suggestions and advice along the way, including options, inspections, mortgages, construction issues, etc.
• An experienced buyer’s agent will be able to analyze the data and trends in the area and offer advice.

Buying and building a home is an exciting venture. Just as with any life changing event, success can be most easily found with the guidance of those experienced in the specific arena. When that guidance and direction is available at no cost, why not take advantage of that opportunity?