Should Buyers Purchasing a New Construction Home Use a Realtor? – by Robin Glasener
Brand spanking new homes! If you’ve been paying attention, they’re popping up all over the place in Northern Colorado, and their allure can certainly be tempting. They are semi-customizable, don’t come with any funky vibes/grunge/grime/, and who doesn’t love that “new home smell”? There are a great many advantages to owning a new home, and perhaps you are considering purchasing one. (do contact me, if you are!).
As a Realtor who has worked as a builder’s agent and who specializes in new construction, I’m often asked whether buyers should hire their own Realtor, or use the builder’s agent/salesperson, when purchasing a new construction home.
The answer is an easy one. Buyers should absolutely, positively hire their own Realtor, and here’s why!
When you, the buyer, hire a Realtor to be your buyer’s agent, that Realtor is working for you and becomes just that. Your representative, advocate, and your trusted business partner. Your confidante. The person who goes to bat for you and has your back. We Realtors are trained professionals in real estate contract law and skilled negotiators who can help get you more of what you want, for the price you want to pay, during your purchase. We can neither share your financial information nor the most you are willing to pay (your cards are kept close to our chests). The very best part? As buyer’s agents, we customarily get paid for our services rendered, by the seller/builder, not you, the buyer, which makes hiring a buyer’s agent quite an affordable option!
A builder’s agent/salesperson will gladly help you with the purchase of their homes, from start to finish, but they represent only the builder and work for the best interests of their employer, the builder, not you, the one getting ready to spend several hundred thousand dollars on their product. I liken it to showing up to court without having hired an attorney, when the other side has (and they’re clearly prepared). Kind of scary, right? By representing the builder, their goals are to get top dollar for the homes and help the builder reach their monthly and annual sales projections.
Buyers sometimes think that working with the builder’s agent/salesperson might save them money, by way of a discount, since the builder, then, isn’t paying out a buyer’s agent. I get it. This seems logical, but, unfortunately, this isn’t the case. Agent commissions are automatically built into the price of the new home, and builders do not like to discount their homes, as it sets a precedence for the rest of the sales in that development. Builders, instead, are more likely to give concessions to buyers, in the way of upgrades and extras, things that the buyer’s agent you’ve hired, will help you navigate – and negotiate!
Other things your buyer’s agent will help you with is recommending financing and determining whether any incentives given by the builder and builder’s lender are the best deals for you. They are experts in the field and can help you to research city and neighborhood plans, as well as the builders and their reputations. An added benefit is that your buyer’s agent can also show and help you purchase any new construction home, by any builder, whereas a builder’s agent/salesperson typically only sell that builder’s homes.
Lastly, should you decide to tour model homes without your Realtor (it’s okay…we know you do it) be sure to tell the builder’s agents/representatives that you’re working with a Realtor and who you’re working with. Many builders will not allow you to use the Realtor you’ve hired to represent you if you don’t do this.
Have a real estate question or need? Call Robin Glasener with Re/Max Nexus 720-352-7376