I am often asked:
“Why do I need a buyer’s agent to represent me when I am buying new construction?”
Many buyers believe they should just use the builder’s agent and maybe even save some money by doing so. However, most buyers are surprised to hear these are both untrue.
First, you don’t have to use the site agent. Like any major transaction, you really should have your own representation, someone that is working for you and looking out for your best interest.
As for saving money, the builder will not change the price based on who represents you.
Here are the top three benefits why being represented by your own agent is the right choice when buying new construction.
- Expert Negotiation: Builders would like you to believe that their prices are set with no room for negotiation. While this may be true some of the time, I believe that as we see our local market starting to shift there will be some more room to negotiate on price. An agent could also help negotiate upgrades to be included in the sale.
- Preferred Vendors: Builders usually have a preferred lender that will provide some money towards closing costs if you use them. While this many be tempting, you can often find a better deal and save thousands over the life of your loan. Buyer’s agents have relationships with local lenders that they can refer you to.
- Guidance & Support: The new home building process is complex with lots of moving parts, so it is very beneficial to have someone with experience to help navigate this process. For example, a buyer’s agent can attend your upgrade selection meeting and offer guidance on those upgrades that will be desirable for resale. This helps you to spend your upgrade budget wisely. They will also attend walk throughs as another set of eyes and ears. This has been beneficial to my clients as an agent can point out things that the buyer may not have seen or even looked for.
It is also very important that you have that agent identified (even if they don’t accompany you) on your first visit to the site.
If you have any questions about this topic or any other real estate related topics, don’t hesitate to reach out. I am always here to help you with any of your real estate questions or needs.