Why It’s Important to Use a Realtor When Purchasing a New Build
Buying a new build home can be an exciting journey. However, many buyers make the mistake of thinking they don't need a real estate agent when purchasing directly from a builder. Here's why it's essential to work with an experienced real estate agent, even for new constructions.
1. Builder’s Sales Representative Works for the Builder
The builder employs the sales representative at the construction site, meaning their loyalty lies with the builder’s interests. Their goal is to sell homes at the highest price possible, so having your own agent ensures that someone is advocating for your best interests.
2. Expert Negotiation and Guidance
Even though new homes often have set prices, an agent can help you negotiate additional upgrades, incentives, or closing costs. Agents understand market trends and can advise on when to push for a better deal or when the builder’s offer is competitive.
3. Insight into the Market and Neighborhood
Agents are knowledgeable about the local real estate market and future neighborhood developments, which helps determine whether the price is fair and whether the area will appreciate over time. They can also advise on which upgrades or features will add resale value.
4. Understanding the Legal and Paperwork
The contract for a new build can be complex. Agents are familiar with these legal documents and can ensure you understand the terms, timelines, and contingencies, helping to avoid costly mistakes. They also coordinate inspections and appraisals to ensure you get the best value.
5. It’s Usually Free for Buyers
In most cases, the builder pays the Buyer’s Agent (BA) compensation, not you*. This means you get expert advice and representation at no additional cost.
Using a real estate agent when buying a new build offers protection, valuable market knowledge, and negotiating power—all of which can make a significant difference in your home-buying experience.
*Not all builders offer BA compensation. Please talk to your Real Estate Agent and check your Buyer's Broker's Compensation Agreement and Exclusive Right-to-Buy Listing Contract for details. As with any Agent compensation, BA compensation is negotiable.