8 Reasons to Use a Buyer’s Agent When Buying New Construction

There are many reasons to utilize a buyer\'s agent.

Many people who purchase in a new construction active adult community mistakenly think it is in their best interest to purchase directly from the builder without using a buyer’s agent when in fact there are many great reasons why you should use a real estate agent when making a new construction purchase. A buyer’s agent working for YOUR needs can help you find the right home at the lowest price. Here are 8 reasons why you should use a knowledgeable buyer’s agent when purchasing from a builder.

1. The salesman is working for the builder, not you

Guess what, the salesman is looking out for the best interest of their company, not you. Their main goal is to sell you a home at a price that maximizes profit for the company and commission for themselves. A buyer’s agent works for YOU. This means they are obligated to help you find the best home at the best price. A buyer’s agent will never try to “sell” you a home. Rather, they will listen to your needs and help match you with a property that suits you.

2. A professional agent has substantial knowledge and expertise

Realtors spend many hours a day studying properties for sale, monitoring trends, and looking for great deals. They are often experts in a particular community or subdivision. They know more information about the neighborhood you are considering than you could possibly acquire with a few weeks of looking.

3. A Realtor’s expertise is free to you

The builder pays a real estate agent a commission for representing the buyers. Many buyers mistakenly believe they will get a better deal if they do not use a buyer’s agent. They assume that since a builder has to pay the agent a commission, they would be willing to pass those savings on to the buyer if they do not use an agent. This is not true. In fact, builders charge the same price for a house regardless of whether or not you use an agent. The agent’s commission comes out of the builder’s bottom line and in no way affects your purchase price.

4. An agent can help you save money

Purchasing a new construction home from the developer without the use of an agent could actually cost you more money. Because an experienced buyer’s agent is so knowledgeable about the active adult community you are looking at, they know when and where to find the best deals.

Furthermore, they have access to information that shows comparable sales so they will be certain you do not overpay for a home. For example, did you know that a builder is more likely to offer an incentive at the end of a month? Also, builders are more likely to negotiate with you if you purchase an already finished “spec” home. Knowledgeable real estate agents know all of these secrets and more.

5. Why limit yourself to new construction

Most communities that are selling new construction homes also have pre-owned resale homes for sale as well. The salesman working for the builder can only show you the new homes. Why limit yourself to new construction? The resale market sometimes has more choices at better prices. In fact, some people prefer resale homes because they already have window treatments, mature landscaping, and no more on-going construction surrounding the home.

6. Real estate agents are professional negotiators

Real Estate agents know the art of negotiating the best deal. Even when a builder says, “we do not negotiate,” there is often room to wiggle. A professional buyer’s agent knows how to find the builder’s “bottom line.” This crucial knowledge can likely help you save thousands of dollars on the purchase of a new construction home.

7. The home you love might be in a different community

You may not know it, but the home of your dreams might be in a community you didn’t know existed. A knowledgeable buyer’s agent might help you realize that there is a different community that better suits your needs and lifestyle. Agents will help you explore all of your options before you make a final decision.

8. Buyer’s agents will help you understand the contract

When it comes time to sign the contract, a buyer’s agent will help you understand the builder’s contract. Some contracts are over 50 pages long. It is important you have someone there (besides the builder’s salesman) to help you understand the contract and let you know what you are signing.

Can you spot the $207,744 difference between these identical homes?

Financing is the difference!

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