If you’re considering buying a new construction home and will be working with the builder’s agent instead of your own real estate agent, you’re doing yourself a disservice. It seems obvious, but it needs to be stated that you’re being “represented” by the seller’s agent when you buy a new construction property without your own agent. In fact, the seller’s agent has a legal responsibility to serve the seller’s best interest. The builder has a team of experts in their corner.
You’ll need a real estate agent in your corner, too, to represent you and keep your best interests at heart. Your real estate agent will help you negotiate the best deal for your home. Because things don’t always go according to plan when homes are being built, your real estate agent can alert you to potential problems and help you work on resolutions.
So, why do so many people choose to make possibly the biggest purchase of their lives without the guidance of their own real estate agent? Some automatically assume that they’ll save money by not using an agent. They think that the builder will increase the cost of the home if they work with their own agent. The truth is that most builders already include the buyer’s agent commission in the home price. Some builders do offer incentives for using the seller’s agent. In either case, you really need to ask yourself if the savings are worth it. If you continue the new construction process with your own agent, are you prepared to handle everything that could go wrong? More importantly, can you afford these mishaps?
As an alternative, you could hire an attorney to review your contracts while you work with the builder. But, the attorney’s fees could ultimately cost you more than the money that you’re saving by not using your own real estate agent.
In the end, it’s best to just forgo the builder’s representation and hire a real estate agent. As a buyer, you typically don’t pay the agent’s commission. The seller does. With a real estate agent at your disposal, you won’t have to worry about the fees adding up while you’re consulting with a real estate attorney (although real estate attorneys are required real estate transactions in certain areas). Having a real estate agent on your side will provide you with peace of mind throughout the new home construction process.