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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

Email[email protected]

Address Lisa Biddle
Lisa Biddle Realty Group - KW86
312 N Powell Pkwy
Anna, TX 75409

New Construction March 23, 2019
3755
Listed
108
Avg. DOM
$175.01
Avg. $ / Sq.Ft.
$425,000
Med. List Price
3755 Properties Found. Showing 1-12
Sort By:
18055 Bruno Road
Justin, TX 76247
18055 Bruno Road Justin, TX 76247
1 of 27
$449,900
Subdivision: Riggs Place
BEDS
4
BATHS
3
SQ.FT.
2,975
BUILT
2019
ON SITE
1Day
MLS
14048711
New home built by TMG Construction. Enjoy country living in the city! 4 bed, 3 and half bath with no HOA and spacious 1 acre lot. Stone front exterior, covered front and back porch. Hand scraped wood...
4868 Paddock Trail
Carrollton, TX 75010
4868 Paddock Trail Carrollton, TX 75010
1 of 9
$386,000
Subdivision: Reserve on Parker Townhomes
BEDS
3
BATHS
2
SQ.FT.
2,253
BUILT
2019
ON SITE
1Day
MLS
14049464
CB JENI HOMES TRINITY floor plan. --Model Home Finish-- This floor plan is one of our buyers favorite, featuring over 2250 sq. ft, 3 bedrooms, 2.5 bath, loft & huge open concept living & dining...
5247 Miller Avenue
Dallas, TX 75206
Open House
5247 Miller Avenue Dallas, TX 75206
1 of 36
$1,199,000
Subdivision: Vivkery Park
BEDS
4
BATHS
4
SQ.FT.
3,960
BUILT
2019
ON SITE
1Day
MLS
14036928
This classy custom craftsman new build is in the sweet spot of the very up and comin conservation district neighborhood of Vickery Place. 5247 Miller Ave is perfectly located adjacent to Uptown north...
1605 Carnation Street
Celina, TX 75009
1605 Carnation Street Celina, TX 75009
1 of 3
$363,514
Subdivision: Lilyana
BEDS
4
BATHS
3
SQ.FT.
2,272
BUILT
2019
ON SITE
1Day
MLS
14049526
MLS# 14049526 - Built by Highland Homes - September completion! ~ Beautiful 4 bedroom 3 full bath with study on an interior lot. Separate walk in shower, separate garden tub in master. Bay window in...
1609 Carnation Street
Celina, TX 75078
1609 Carnation Street Celina, TX 75078
1 of 7
$355,564
Subdivision: Lilyana
BEDS
4
BATHS
3
SQ.FT.
2,211
BUILT
2019
ON SITE
1Day
MLS
14049534
MLS# 14049534 - Built by Highland Homes - September completion! ~ 1 Story, 4 Bedrooms, Study, Formal Dining Area on an interior lot. Separate walk-in shower-garden tub in master bath, bay window in...
1526 Snowdrop Drive
Celina, TX 75078
1526 Snowdrop Drive Celina, TX 75078
1 of 9
$370,321
Subdivision: Lilyana
BEDS
4
BATHS
3
SQ.FT.
2,252
BUILT
2019
ON SITE
1Day
MLS
14049538
MLS# 14049538 - Built by Highland Homes - September completion! ~ This beautiful single story home is on a corner lot! Soaring 11 foot ceilings and 8 foot doors. 4 bedrooms and 3 full baths. Walk in...
1522 Snowdrop Drive
Celina, TX 75078
1522 Snowdrop Drive Celina, TX 75078
1 of 9
$402,776
Subdivision: Lilyana
BEDS
4
BATHS
3
SQ.FT.
2,593
BUILT
2019
ON SITE
1Day
MLS
14049541
MLS# 14049541 - Built by Highland Homes - September completion! ~ 2 Story, 4 Bedrooms, 3 baths, Formal Dining. Interior lot, separate shower-garden tub in master bath, bay window in master bedroom....
13300 Riverhill Road
Frisco, TX 75033
13300 Riverhill Road Frisco, TX 75033
1 of 2
$791,429
Subdivision: Newman Village
BEDS
5
BATHS
5
SQ.FT.
4,507
BUILT
2019
ON SITE
1Day
MLS
14049558
MLS# 14049558 - Built by Darling Homes - August completion! ~ Beautiful 2 story home - study, formal dining ,gourmet kitchen with island open to breakfast and family room with corner fireplace,...
726 Shenandoah Drive
Cedar Hill, TX 75104
726 Shenandoah Drive Cedar Hill, TX 75104
 
$550,000
Subdivision: Shenandoah
BEDS
4
BATHS
2
SQ.FT.
4,000
BUILT
2019
ON SITE
1Day
MLS
14049571
This immaculate, professionally-designed 2-story private community home invites comfort, and exudes modern elegance. The 4 bedrooms, 2.5 bath, Game room, Media room includes a stylish finishes...
13331 Santa Isabel Drive
Frisco, TX 75033
13331 Santa Isabel Drive Frisco, TX 75033
 
$841,305
Subdivision: Newman Village
BEDS
4
BATHS
4
SQ.FT.
4,080
BUILT
2019
ON SITE
1Day
MLS
14049581
MLS# 14049581 - Built by Darling Homes - July completion! ~ Stunning 2 Story home - Courtyard leads to front entry, family room opens to eat in kitchen and hearth room with fireplace, study, master...
4108 Interurban Road
Lancaster, TX 75134
4108 Interurban Road Lancaster, TX 75134
1 of 25
$210,000
Subdivision: Taylor Brothers
BEDS
4
BATHS
2
SQ.FT.
1,936
BUILT
2018
ON SITE
1Day
MLS
14049600
Beautiful new home!! everything you need in this beauty. Large lot, 4 bedrooms 2 baths, large living room, dining room, 2 car garage, separate tub and shower, double vanity in master, wood burning...
3986 Attu Drive
Frisco, TX 75033
3986 Attu Drive Frisco, TX 75033
1 of 2
$701,945
Subdivision: Newman Village
BEDS
3
BATHS
3
SQ.FT.
3,192
BUILT
2019
ON SITE
1Day
MLS
14049633
MLS# 14049633 - Built by Darling Homes - August completion! ~ Stunning 1 Story Home - Gourmet kitchen with island open to dining area and family room with fireplace, study, media room, master suite,...
Information is deemed reliable, but is not guaranteed accurate by the MLS or NTREIS. The information being provided is for the consumer's personal, non-commercial use, and may not be reproduced, redistributed or used for any purpose other than to identify prospective properties consumers may be interested in purchasing. Real estate listings held by brokerage firms other than Lisa Biddle Realty Group - KW86 are marked with the NTREIS IDX logo and information about them includes the name of the listing brokerage.

NTREIS data last updated 3/23/2019.