Do I Need A Realtor ® When Buying A Home From A Buillder

Dated: 03/27/2015

Views: 994

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Well, the answer is YES. As a Realtor I feel it is extremely important and this is why... 

Most individuals think they don't need a Realtor when purchasing from a builder because they can  simply find the builder, drive to the model, negotiate the deal and move in!  This is simply not true. You ask why? Let me ask you.... whose best interest do you think the builder is looking out for? That's right, the builder is looking out for their own best interest, not the buyers. 

My job as a Realtor is to represent the buyer’s best interest and help them through the transaction with the least degree of hassle and frustration. And our goal is to get the buyer the most value for the least money. I’ve heard many a buyer say they don’t need an agent before a transaction, but I’ve never had a represented buyer say to me at the conclusion that they were sorry they had me at their side representing them. The least important part of our job is driving the buyers around to look at houses (although it is important); our real value comes later in negotiating and working through the process on behalf of our client.

Representation.  The builder representative at the model home may look and sound like a real estate agent there to help you. However, the builder rep is a salesperson for the builder, and as such represents the builder’s best interest. I love the analogy I heard recently that when a buyer deals directly with that rep (saving the builder the buyer’s agent commission) it’s like the buyer paying for the builder to not represent them. Real estate agents and Realtors are licensed professionals bound by law and professional ethics while builder reps are not constrained by those requirements.

Negotiation.  Sure the buyer can negotiate effectively. Buyer negotiations can be effective, as long as the buyer knows what incentives are typical and customary, how to compare alternative financing, who pays for what (title costs, appraisals, inspections, additional warranties, surveys, closing costs, etc.), what upgrades cost and how to apply builder concessions, and many other issues. Realtors make it look so easy by asking questions that the buyer doesn’t know to ask.

Inspections. This is a big one. As a buyer’s Realtor, I insist that my client always get a home inspection. The number and severity of new home defects often rival resale home problems. The builder rep is not likely to make any such demands of the buyer. This issue alone justifies our involvement in the transaction. Buyers will often think that the new home warranty will take care of all their problems. That is simply not the case. Here is a real world example. On new, high end property, my inspector flagged a number of items including the incorrect installation of the air conditioner systems located in the attic. The builder argued that everything was in order. After our insistence of a problem the HVAC contractor admitted the error and repaired the problem. Turns out the mounting brackets used to dampen the vibration were installed upside down, thereby focusing the vibration to the structure rather than reducing the vibration. That family might have lived in the home a lifetime with unnecessary noise and vibration were it not for the inspector.

Buyer Agent Cost. That typical 3 percent commission comes from somewhere right? Nobody charges the buyer the commission; the seller pays it. Reputable and honest builders absorb this cost as part of their expense base. There are occasional builders that skew prices to compensate, but this is considered to be both unfair and unethical. In fact today, many builders are paying bonuses and incentives to agents above the standard commission structure. As Realtors we are very often sought after components of the real estate transaction.

The Sequence. This can become a bit tricky. Builders can become resistant to buyers who show up at the builder site and let them think they are unrepresented by a Realtor. The best process is to either shop with your Realtor or at least immediately inform the buyer’s rep that you are working with an agent and that you are represented. Maybe offer the agent’s card or at least name and company as you ‘register’ with the builder. This insures that the agent is ‘in the loop’. It is strongly recommended that you do not do the paperwork or contract without your agent being present to review and advise.

This is a brief overview of what comes up in a new build transaction as there is much more to it then this. However, I hope this helps buyers understand the importance of having a Realtor like myself looking  out for their best interest in a new build transaction. 


Denver CO Real EstateJennifer Gaines REALTOR® specializes in matching people to homes and professional resale services in Aurora, Parker, Centennial and surrounding areas. While helping you find the home of your dreams or sell your home for top dollar, you’ll experience the ultimate customer service experience. Get the Gaines Advantage today and call or text me: Jennifer Gaines303-906-8218   google.com/+JenniferGainesAdvantage

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Jennifer Gaines

Welcome to my resourceful web site! I hope you enjoy all the features offered here. I am a native Colorado and have lived in S.E. Aurora for the past 15 years. I love all of the variety and the p....

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