Why hiring your own real estate agent has its advantages when buying New Construction

When shopping for a home, the attraction of new construction is undeniable. A brand new pristine home with new appliances and finishes all tailored to fit your individuality. A home you won’t have to worry about remodeling or making upgrades to for years to come.
Buying new construction seems simple, right? Pick out the floor plan, choose the perfect lot, and watch it go up. No sellers to deal with, no unexpected repairs that take place during inspection and, no drawn-out negotiations. Right? Not so fast. In any real estate transaction, it’s important to have a professional on your side, even if the process seems straightforward.

Even though a friendly sales representative will greet you with a smile the moment you enter the sales center…they work for the builder.  Bring your own agent with you starting with your first visit — in fact, many builders require your agent to register with them from the very beginning in order for them to be involved in the process and receive their commission.

What is a Seller’s Agent?
Real estate agents working at new construction sales offices represent the Seller and only the Seller.  As a Seller’s agent, they owe certain fiduciary duties to act solely in the best interests of the Seller (the Builder) to the exclusion of all other interests. For that reason, they may not be forthright about getting you that best deal… since they are representing their client only.

What is a Buyer’s Agent?
Real estate agents working with Buyers represent only the Buyer.  Buyer’s agents owe certain fiduciary duties to act solely in the best interests of their clients. 

Why should a Buyer have their own real estate agent?
When buying new construction, here’s how an agent can help: 

1. Help with finding a reputable builder. Your agent can rely on their own experience and that of their colleagues to help you find a builder you can trust. Help you determine the quality of the workmanship? What kind of warranty do they offer? What’s their track record of resolving issues? Getting a clear understanding in the beginning can alleviate serious headaches down the road.
2. Help with reviewing the contract.  Even if you’ve purchased a home before, the contract for new construction is a whole different animal, and an experienced agent can help you make sure you understand everything, from floor plans to earnest money requirements, deadlines for requesting changes, and timelines for completion. It’s crucial to have a third party who represents your interests in the transaction. A good agent can add the proper addendums to protect you if something falls through.
3. Suggest smart upgrade choices.  Builders will offer you endless options for finishes and upgrades, and it’s easy to get overwhelmed. A seasoned real estate agent can recommend the upgrades that will get you the most for your money in resale value, suggest finishes that might be cheaper to do on your own, and help you avoid over-improving, which can jeopardize your appraisal before closing.
4. Help with negotiating extras.  Want upgraded counters or appliances in that new home? Your agent can help you with all those extra perks, amenities, and upgrades.  Agents can often negotiate with the builder on things like paint color or even the style of garage door, especially if the housing development is in the beginning stages. Buyers’ agents know the areas where you’ll find the most wiggle room when it comes to negotiations. Builders are trying to keep their sales price up so that the next buyers see the higher closing price. 
5. Recommending financing.  A builder typically will have a “preferred” lender that it will try to steer you to, but your real estate agent can help make sure that you’re getting the mortgage that works best for your situation. I recommend shopping around so you don’t want the builder’s agent pressuring you into using their suggested professional unless it’s in your best interest.
6. Assisting and overseeing home inspections.  You may be tempted to forgo a home inspection in new construction.  Don’t do it.  The number of new-home defects often equal or exceed resale home problems. The builder’s agent is unlikely to push for an inspection, so it’s up to you and your real estate agent to make it happen.

How the Builder’s Agent can help
The Seller’s Agent can be a valuable resource for learning about your potential new home.  They are knowledgeable about the construction and available amenities, as well as the housing development and general community vibe.  You can rely on the builder’s agent for background information—just don’t make this individual your sole point of contact on the buying and selling process.

Who pays for the Buyer Agent?
Buyer agent representation is typically free when building a home.  Site agents want to sell homes, not handle every aspect for the buyer.  They find it much easier to deal with another agent as opposed to dealing only with the buyer throughout the process.  A buyer’s agent can handle many of the questions and potential issues long before the site agent is called. 

How to Proceed?
Everyone wants to walk away from buying a home with peace of mind.  Have your agent accompany you on your first visit to the new construction site. With a professional you trust by your side, you’ll rest easy knowing someone is there to protect your money, your time, and your new home.

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