Pros and Cons of Using a Realtor For New Construction
Having a Realtor For New Construction is Smart!
Do I need a real estate agent when buying a new home? Inquiring minds want to know.
The pros of using a Realtor for new construction far outweigh the cons. It’s not even close.
Buying a house without a Realtor can be financial suicide, whether it is a new construction or a resale.
It can seem so easy when you decide to take the leap and buy a new construction home – a property you get to customize and be the first to live in it.
You are the one calling the shots, and there is no risk of winding up in a home with many problems caused by previous owners.
Unfortunately, if you go forward blindly into your home purchase, you will not be the first to discover that buying new construction is not as straightforward or as trouble-free as you imagined.
How Does a Realtor Get Paid on New Construction?
Like most other real estate transactions, a realtor will be paid for new construction. Typically, a builder will offer to pay a buyer’s agent half the commission, just like in a resale home.
Sometimes buyers will think if they go directly to the builder or the person manning the sales office, they will save half the commission. This is not the case.
There will be no benefit in going directly to the builder. They will not discount or give you a rebate because you didn’t come with your Realtor.
Keep in mind the person working in the sales office represents the builder. They don’t represent buyers. So it is commonplace for builders to pay Realtors a commission for new construction.
What Happens When You Visit New Construction Without a Realtor?
Over my thirty-seven years of selling real estate, many potential buyers have asked me what happens when I visit new construction without a Realtor.
The answer is you could be out of luck. Once you sign into a builder’s sales office without a Realtor, they may not allow you to have one.
The Realtor may not be able to receive a commission, and you may be out of luck having a buyer’s agent represent your best interests.
Unfortunately, sometimes nothing is posted anywhere at the builder’s sales center that tells you this. It may be posted in multiple listing services (MLS), but only Realtors will see it. That doesn’t do you much good.
Don’t sign your name or provide other contact information when you visit a new construction development. Instead, speak with your Realtor for new construction.
Go back and tour the home with your agent present. Having your real estate agent take over will be the wisest thing you can do.
Pros of Using a Realtor
Realtors can help you choose the right builder.
It does not cost you anything – the builder pays the commission.
Your Realtor can help you get appropriate financing.
You have a fiduciary looking out for your best interests.
Your real estate agent will be negotiating on your behalf.
They can help you decide on the right lot.
Realtors have experience choosing the best upgrades for return on investment.
Your Realtor can recommend a professional home inspector.
You’ll continue to have representation after closing.
Cons of Using a Realtor
None unless you choose the wrong one.
We recently closed a new construction transaction where we represented our clients. Once we came into the picture and created a working relationship with the builder’s agent/salesperson, we were able to $87,000 in concessions in addition to selecting a quick move-in home to gain another $37,000 move-in credit.
It is clear that bringing an experienced realtor, (us) into a new build purchase to work for you creates an advantage you won’t have on your own.
We would absolutely love to help you and your family when you decide on this type of move.
Warmly, Dean
——————–
Dean & Crystal Souza
Realtor | Broker Associate
Century 21 RE Alliance – Souza Team
homes@souzateam.com
510-881-1761/916-805-8668
DRE 00967442 | 01448392
Focused on the Success of Your Move
