New Home Construction: With or Without an Agent?…That is the Question!

New Home Construction: With or Without an Agent?…That is the Question!

There are many varied opinions in all markets as to whether or not a buyer should work with a licensed real estate agent when purchasing a new home.  And you’ll find a lot of misconceptions and inaccurate information if you surf the Internet for your answers!  But here are some important points for you to consider when trying to formulate your own opinion to this controversy:

If the builder is representing both you and themselves, whose best interest do you think will take first position, you or the builder’s?  The salesperson works for and represents the builder, and although the builder does want you to have a positive experience, shouldn’t you also have independent representation?

The builders will use their own, standardized contract template, filled with pages of legal and construction language and detail.  Once you get to the contract-writing step, reading through all of this information is time consuming and you may or may not understand much of it.  Having a licensed real estate professional by your side who can review what you’re signing and help explain anything as it pertains to you and your rights as the buyer.  This includes the builder’s CC&R’s and the public report.  They are your exclusive advocate!

Your agent can give you objective professional advice and insight during all phases of the process by attending scheduled walk-through’s and inspections.

While the sales representative will always give the appearance that sales prices are non-negotiable, an experienced agent can use recent and historical sales data to aid in the negotiation.  This data is not always available during new construction, and the builders will not provide this information when evaluating the price you are paying.

An agent may have a good turn-down lender recommendation if the builder’s preferred lender cannot get your qualified or if their loan charges seem to be exorbitant.

It is a common misconception that builders save money when the buyer is not represented by an agent, and subsequently will pass that savings along to the buyer.  Most buyers have already worked a sales commission into their cost model, but if there is not an outside real estate agent being paid, the builder will just absorb the savings themselves.  The onsite agent is not given this savings, and the buyer is not given a discount for this savings.  Another misconception is that onsite sales agents are coached to “discourage” buyers from using an agent – the onsite agents appreciate the relationship between buyer and their agent, and although the onsite agent does take control of the transaction, they will work in cooperation with another agent, merely out of respect for the client – the buyer.

Your agent can help you with choices for options and upgrades, additional electrical placements (i.e. – 220 in the garage, Christmas light outlets, ceiling fan placements, etc.).  The agent can keep a copy of these placements on the floor plan for your future reference, especially at walk-thru inspections. 

Having outside representation costs the buyer NOTHING!  The builder pays your agent for not only bringing you to the community, but for also being a selling advocate in order to complete the sale.  A successful real estate agent will recognize the value of working alongside the builder’s agent to bring the sale to a successful close – a win-win for everyone involved!

 It almost goes without saying that every buyer can benefit by working with a licensed real estate agent to not only locate the new home of their dreams, but also help to secure the best price and assist in making the entire transaction more enjoyable and smooth along the way!

If you have any additional questions about buying a new construction home please feel free to give us a call, 1-844-I-SELL-ATL and let's talk about how we can get you into the new home you want and deserve. 

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