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Why would I want to use a Realtor when purchasing a new home?

The salesperson in the model home said that they would help me with everything.

That second sentence is a partial answer to the question.  The remainder of the answer rests in the fact that the model home salesperson is employed by the builder, and thus is obligated to work for the absolute best interests of the builder. Every home purchase involves a Buyer and a Seller.  As you are aware, the Buyer tries to buy for the lowest possible price, and the Seller tries to sell for the highest possible price.  The Buyers and Sellers involved in most residential resale transactions are represented by Realtors who are skilled not only in negotiating the best prices for their clients, but also are skilled in the highly regulated contractual elements of real estate transactions.

Surprisingly, very few purchasers of new homes use the services of a Realtor.  This surprises me because a Realtor who has experience dealing with new home builders might be able to unlock benefits for their New Home Buyer Clients that unrepresented buyers are never offered.

Remember, in an unrepresented transaction, the builder establishes the terms of the sale, the builder carefully controls the sale, and the builder’s employees, including the salesperson, are looking out for the best interests of the builder.  Nobody is representing the homebuyer.

In a Realtor represented transaction, the Realtor will negotiate options that can be added, sometimes at very significant discount.  The Realtor will arrange for periodic inspections of the construction process, and insure that corrections are made on any discovered defects.  The Realtor may also be able to accelerate the building process as well.

Won’t the price be lower if I don’t have a Realtor?

In a word, NO.  Builders build in a Realtor fee into the price of the home, regardless of whether or not a Realtor is involved.  If no Realtor is involved, the advantage and extra profit goes to the builder.  If a Realtor is involved, the advantage goes to the buyer.

 

Builders have generally made it difficult for home buyers to get Realtor representation.  They have established a specific protocol to enable this representation.  If you walk into a model home, the salesperson will ask you to register.  Once you have registered, without a Realtor, they will typically not allow you to obtain Realtor representation.  The solution to this is to always visit a new model home with a Realtor.  However, this isn’t always a practical approach.  A more practical approach is to have a supply of your Realtor’s business cards in hand when visiting the model for the first time, and inform the salesperson that you are represented by a Realtor and present the Realtor’s business card.

If you wish Realtor representation I will provide you with a supply of my business cards so that you can inform the salesperson and register as being represented.

In a Realtor represented transaction, a good Realtor works to protect the best interests of his client.

Contact me.  Fill out the form below, or call me at 720-277-9001.