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Should I use a Realtor if I'm Buying from a Home Builder?

“If I’m buying a new house directly from the builder, why do I need a Realtor?” Well, according to Houston Realtor® Patrick Welsh, an unrepresented buyer can be at a real disadvantage by deciding not to use an experienced real estate professional.

“As a Realtor, many people think I’m just trying to salvage a commission by recommending that a buyer retain my services for a purchase from a builder. All too often buyers think that they don’t need a Realtor to represent them since they can find the builder all by themselves, drive right up, negotiate the deal and move in!

My job is to represent the buyer’s best interest and help them through the transaction with the least degree of hassle and frustration. And our goal is to get the buyer the most value for the least money. I’ve heard many a buyer say they don’t need an agent before a transaction, but I’ve never had a represented buyer say to me at the conclusion that they were sorry they had me at their side representing them. The least important part of our job is driving the buyers around to look at houses (although it is important); our real value comes later in negotiating and working through the process on behalf of our client.

Representation. The builder representative at the model home may look and sound like a real estate agent there to help you. However, the builder rep is a salesperson for the builder, and as such represents the builder’s best interest. I love the analogy I heard recently that when a buyer deals directly with that rep (saving the builder the buyer’s agent commission) it’s like the buyer paying for the builder to not represent them. Real estate agents and Realtors are licensed professionals bound by law and professional ethics while builder reps are not constrained by those requirements.

Negotiation. Sure the buyer can negotiate effectively. Buyer negotiations can be effective, as long as the buyer knows what incentives are typical and customary, how to compare alternative financing, who pays for what (title costs, appraisals, inspections, additional warranties, surveys, closing costs, etc.), what upgrades cost and how to apply builder concessions, and many other issues. Realtors make it look so easy by asking questions that the buyer doesn’t know to ask.

Inspections. This is a big one. As a buyer’s Realtor, I insist that my client always get a home inspection. The number and severity of new home defects often rival resale home problems. The builder rep is not likely to make any such demands of the buyer. This issue alone justifies our involvement in the transaction. Buyers will often think that the new home warranty will take care of all their problems. That is simply not the case. Here is a real world example. On new, high end property, my inspector flagged a number of items including the incorrect installation of the air conditioner systems located in the attic. The builder argued that everything was in order. After our insistence of a problem the HVAC contractor admitted the error and repaired the problem. Turns out the mounting brackets used to dampen the vibration were installed upside down, thereby focusing the vibration to the structure rather than reducing the vibration. That family might have lived in the home a lifetime with unnecessary noise and vibration were it not for the inspector.

Buyer Agent Cost. That typical 3 percent commission comes from somewhere right? Nobody charges the buyer the commission; the seller pays it. Reputable and honest builders absorb this cost as part of their expense base. There are occasional builders that skew prices to compensate, but this is considered to be both unfair and unethical. In fact today, many builders are paying bonuses and incentives to agents above the standard commission structure. As Realtors we are very often sought after components of the real estate transaction.

The Sequence. This can become a bit tricky. Builders can become resistant to buyers who show up at the builder site and let them think they are unrepresented by a Realtor. The best process is to either shop with your Realtor or at least immediately inform the buyer’s rep that you are working with an agent and that you are represented. Maybe offer the agent’s card or at least name and company as you ‘register’ with the builder. This insures that the agent is ‘in the loop’. It is strongly recommended that you do not do the paperwork or contract without your agent being present to review and advise.

My comments here are not meant to encompass all of the benefits of having a Realtor represent a buyer, nor all the buyer issues that could arise. This is just a brief overview, and there is much more to it. However, I hope this serves as a short course for buyers to give them cause to consider what is in their best interest.”

Source: realtor.com

Phone(972) 333-0301

Emaillisa@lisabiddle.com

Fax(972) 382-5017

Address Lisa Biddle
Lisa Biddle Realty Group - KW N Country
604 W White Street B
Anna, TX 75409

New Construction October 25, 2021
28
Listed
127
Avg. DOM
$444.20
Avg. $ / Sq.Ft.
$972,395
Med. List Price
28 Properties
Page 1 of 3
$579,000
Subdivision: Dallas Land & Loan 02
2
Beds
3
Baths
2,075
Sq.Ft.
2019
Year Built
11
Days on Site
14691204
MLS
Welcome to Urban Living at its finest at 429 W 9th St.  This is a rare find in the heart of Bishop Arts, where you are buying into one of Dallas' hottest neighborhoods!  This soft contemporary unit...
$949,990
Subdivision: Hollyhock Ph 3
4
Beds
3F21/2
Baths
4,059
Sq.Ft.
2019
Year Built
12
Days on Site
14687092
MLS
Built by MI Homes. West facing model home at Hollyhock is now available in Frisco ISD! The amenity rich community backs to the new PGA golf course. The Dickinson floorplan features 4 spacious...
$549,990
Subdivision: Ventana
4
Beds
3
Baths
3,388
Sq.Ft.
2018
Year Built
14
Days on Site
14689175
MLS
MLS# 14689175 - Built by TriPointe Homes - Ready Now! ~ This elegant former model home provides a flowing layout that is sure to impress. It’s beautiful, curved staircase is the perfect complement...
2
Beds
2F11/2
Baths
1,527
Sq.Ft.
2018
Year Built
17
Days on Site
14687714
MLS
Spectacular views of Dallas from your private, vast terrace with fireplace available only at Bleu Ciel. This 33-story modern yet elegant building was designed by french architect Jean-Michel Wilmotte...
2
Beds
2F11/2
Baths
2,429
Sq.Ft.
2019
Year Built
35
Days on Site
14675489
MLS
The Corvalla is a three-story luxury development of single-story residences located in the Stonebriar neighborhood of Frisco. Characterized by resort-inspired living, The Corvalla offers high-end...
$995,770
Subdivision: Westlake Entrada
3
Beds
3F11/2
Baths
2,038
Sq.Ft.
2018
Year Built
39
Days on Site
14672425
MLS
RARE FIND! Live the dream in Westlake's Entrada with this new construction 3 bedrooms, 3.5 bathroom home offering 2,038 Sq. Ft. Enjoy luxury finishes and design throughout this 3-story floorplan with...
$469,900
Subdivision: Rockwall Downes
3
Beds
3
Baths
2,618
Sq.Ft.
2018
Year Built
48
Days on Site
14663925
MLS
Ask about our MEGAsale promotion of 6 months mortgage on us. Megatel Homes will credit the first 6 months of your new mortgage payment. See your community sales consultant for full details. This home...
Option Contract
204 Michelle Street Aubrey, TX 76227
$349,900
Subdivision: Highmeadow Village Ph X
3
Beds
2
Baths
1,915
Sq.Ft.
2019
Year Built
53
Days on Site
14661725
MLS
LOOKING FOR MOVE IN READY NEW CONSTRUCTION-HERE IT IS! ~HIGH QUALITY~BEAUTIFUL~CASTLEROCK COMMUNITIES MODEL HOME ~2 YEAR WARRANTY CONVEYS. Loaded with amazing upgrades & options on an OVER SIZED...
$596,726
Subdivision: Canyon Falls
3
Beds
2F11/2
Baths
2,957
Sq.Ft.
2019
Year Built
56
Days on Site
14661411
MLS
Don't miss your chance to own this American Legend MODEL home located on an over-sized corner lot. This single story open floor plan is perfect for entertaining. Large kitchen open to the family...
$799,000
Subdivision: Webster & Woods
4
Beds
2F11/2
Baths
2,978
Sq.Ft.
2018
Year Built
56
Days on Site
14660428
MLS
Welcome to this beautiful contemporary modern Inwood Village like new home, featuring soaring ceilings, open and bright floorplan with cascading windows that allow for natural light. Home boasts of 4...
$1,349,000
Subdivision: Montgomery Farm Estates 90's Regency
4
Beds
4F21/2
Baths
4,860
Sq.Ft.
2018
Year Built
60
Days on Site
14658883
MLS
MLS#14658883 ~ Darling Collection by Taylor Morrison ~ The 8010 C Model Home is ready now through our model home leaseback program! This home exemplifies open-concept living and is perfect for...
Contingent
425 W 9th Street #101 Dallas, TX 75208
$570,000
Condo: Bishop & 9Th
3
Beds
3
Baths
2,075
Sq.Ft.
2019
Year Built
62
Days on Site
14656163
MLS
Situated right in the heart of Bishop Arts with close proximity to local restaurants, shopping, Downtown Dallas and Hospitals. This home has a spacious living and dining area on the second floor...
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NTREIS data last updated October 25, 2021.