The short answer is “Absolutely, yes.” Many people have the notion that using their own Realtor® to buy a new construction home will increase their cost—it doesn’t. By relying on the builder’s Realtor for all your new construction advice, you’re missing out on having someone represent your best interests. While the builder’s Realtor may seem very helpful, he or she is representing the builder at all times, not you. Below are all the significant reasons to choose your own agent when negotiating all elements of a new construction home.

You Need Buyer Representation

You need an expert looking out for your best interest in the purchase, just as you would want your own buyer’s agent to represent you with a resale home. The builder’s Realtor always has the builder’s best interest in mind, not yours. An independent agent advocates on your behalf. Your own buyer’s agent will help get the most value for the least amount of money and make the real estate transaction as easy and frustration-free as possible.

You Don’t Pay More: How Agent Commission is Handled

The builder is the seller and pays for Realtor commission, just as any resale seller would. Here’s why you don’t save money by not using your own agent. The builder’s price has already accounted for a commission percentage for at least two Realtors involved, just as any seller of a resale home does. Builders rely on outside agents to bring people to see their homes. The caveat is that most builders require you to register your own agent’s name the very first time you come in person to make inquiries about new construction. If you elect not to use your own agent, the full commission goes to the builder’s agent and you didn’t even have someone negotiating on your behalf.

The Model Home Isn’t What You’re Getting for the Listed Price

Of course you’re wowed by the gorgeous interior of the model home. It’s meant to entice you with many beautiful upgrades. The problem is that instead of the base price of $390,000 being advertised, the model would have cost you $490,000 with all the top tier upgrades. A Realtor representing your interests will ensure you’re aware of what’s included in the base price, what’s extra, and how much the extras cost.

Your Agent will Negotiate Best on Your Behalf

While you may be a very good negotiator, your own Realtor is removed from the emotional connection. He’ll let you know what is and isn’t negotiable for a builder, which varies widely among them. Some builders negotiate on fees and closing costs. Some will negotiate on free upgrades, but not price. You need a Realtor to help navigate the waters.

Everything Gets Put in Writing and Your Agent Reviews the Contract

Your own agent will ensure that everything you were promised in negotiations or interior design conversations is put in writing. If specific points you spoke about with the builder’s agent aren’t diligently recorded in the contract, you’ll have little recourse to make the builder comply after signing. Your own agent should never let this happen. Also, your agent will help you review the purchase contract on other points, like hidden fees, HOA costs, and nuances of home contracts where you live. Never sign a new construction contract without your agent’s review.

Don’t Skip an Inspection

A builder’s agent is unlikely to suggest you hire an inspector, but it’s still an important part of the process. It may seem strange to ask for an inspection on a home that’s never been lived in. But builders can make mistakes that will cost you down the road. Don’t assume a builder’s home warranty will cover everything. Your own agent will help you set up an inspection and go over any findings that require builder correction.

The Builder Offers Financing, But Is It Your Best Rate?

Even a small increase in an interest rate can impact you heavily in monthly payments. Your agent can help find the lender that gives you the best mortgage rate for your individual circumstance. Maybe it’s the builder’s financing and maybe it’s not.

If you’re thinking about new construction, don’t go it alone. Take time to find a Realtor who’s dealt with local builders and who explains his role in the process. And remember, register your agent’s name with the builder the very first time you inquire about their new communities.

Platinum Service Realty