I run into more and more buyers who think they don’t need a real estate professional when buying or building a new home. Not true! Here are just some of the reasons why agent representation is key when buying a new home:
- A real estate agent works solely for the buyer and looks after his or her best interests.
- Sometimes an agent has knowledge of negotiable items that a buyer may be unaware of. The agent’s negotiating skills can often save a buyer money, time, and headaches.
- Sometimes builders advertise specials specifically to the real estate community. If you’re not working with an agent, you may never know about certain builder incentives that can save you money.
- Builders use their own individual contracts. There is no standard builder contract for the new construction industry. Agents are knowledgeable about real estate contract language and can help buyers avoid any potential pitfalls.
- Rather than physically going from builder to builder, an agent can gather information on builders and communities and provide it to the buyer ahead of time. This will help you narrow your search in a more efficient way.
- Most importantly, the vast majority of new home builders will not offer buyers a price reduction based on whether or not they are represented by a real estate agent.
When you purchase a new home, the builder pays the agent’s fee. The buyers get helpful representation at no cost to them. This is a no-brainer. If you’re thinking of buying or building a new home, contact a local real estate professional first. We’re here to help.
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Source: http://www.thebranchteam.com/wordpress/2011/03/05/why-using-a-realtor-is-key-when-buying-new/
Tom Branch and Gina Branch, The Branch Team with RE/MAX Dallas Suburbs, service the greater North Dallas suburbs including Dallas, Plano, Allen, McKinney, Frisco, Lewisville, and Carrollton. While Gina concentrates on traditional listings and buyer/tenant representation, Tom specializes in assisting distressed homeowners to avoid foreclosure. Tom and Gina have published two books (Achieving Rock Star Status and The Field Guide to Short Sales) and are available for speaking engagements in the greater Dallas - Fort Worth Metroplex. Subscribe to The Branch Team Blog.
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Tom, already hit the suggest button. Great reasons why no one should go it alone, it is always to have a professional in the corner with you.
Hi Tom
You are right. Buyers are of the impression that the developer or builder will take care of them. Not really, because they have to protect their interest and thats their prerogative. Further, buyers may not be aware that some developers may be here today and gone tomorrow, so with some builders.
So, the best a buyer needs to do is obtain the services of a Real Estate Agent and the service is free.
Tom: I've written about this same subject many times....and represented many new home buyers. I used to work for a new home builder so I know all of the reasons to use a buyers agent!!!
Great blog post! Thank you for sharing your thoughts with us!
Tom, I think #6 is probably the biggest misconception, that they'll "save" money without an agent. We've interviewed for listings that bought new without an agent, and other than a short sale, there was nothing that could be done for them because they'd overpaid so badly. Having an agent that can tell you whether or not you're getting a good deal is critical.
They think they can buy a better deal with a builder.
Simply put it this way:
When you go to court, if you knew the other party is well represented (builer's salesperson is there to represent the builder), will you go into trial with no representation (if you had no expertise, experience) in that field?
While I never like to compare us to attorneys, all I'm doing is to bring up the fact that there is professionalism, expertise and experience in every field.
Why would you go into a transaction blindly?
Tom,
So very true most certainly #4 since the builders contracts are skewed in their favor. Usually the larger builders have their in house attorneys draw these things up.
Tom... I think the main reason is because so much can be found on the internet.. secondly, they can hire an attorney to do the rest... but a buyer doesn't understand that it won't cost them a dime when using a realtor, who would be the best for the job.. not the internet, not their dad who has bought houses before.. etc, etc. And you make an excelletn case when even buying a new home. Sure, they have the builders person there... but whose best interest is going to be served, the builder or the buyer? Good post here.