Do I Need an Agent When Buying New Construction?

Here’s why you need a buyer’s agent when buying a new construction home.

Are you interested in buying a new construction home but don’t think you need a real estate agent to help you? Many buyers think they can get a better deal when buying new construction if they represent themselves because they’ll save a few thousand dollars on commission.

Buyer’s agent’s commissions are built into the price of the home, so if you don’t get an agent, you’re paying for something you’re not getting. Most builders do not discount houses when there’s no buyer’s agent involved. Builders greatly depend on Realtors to sell their homes, and if agents found out a builder was discounting their houses to unrepresented buyers, they’d avoid that builder. The builder’s agent can be a good resource during the process, but don’t forget that they represent the builder and will prioritize their interests over yours.

With a buyer’s agent in your corner, you have an expert on your side throughout the building process, which includes decoding the new construction paperwork. Their purchase contracts are not standard and often geared toward the builder. Your Realtor will examine the contract and bring up any issues directly with the builder. Without representation, you could agree to some unfavorable terms without knowing it such as building delays, awful payment schedules, changes to the work, and more.

“Without representation, you could agree to some unfavorable terms without knowing it.”

Buyer’s agents can also assist with finding you the right mortgage. Builder representatives love to push buyers toward their in-house lenders, which can lead to less-than-ideal loan terms. Buying new construction can be an expensive, complicated process, so the experience of a knowledgeable buyer’s agent can be priceless.

Here’s a great perk for you: If you choose Carolina’s Choice to represent you in a new construction purchase, we’ll pay you to let us work for you. We’ll only keep $4,000 of the buyer’s agent’s commission and rebate the rest back to you at closing. For example, if you purchased a $500,000 home, we would rebate you over $8,000. Think about what that could buy for your new house! You’ll receive extra money and the peace of mind that you’re represented correctly throughout the transaction.

If you’re interested in learning more about us paying you for representing you or anything else concerning new construction, give us a call or send an email. We’d love to speak with you.

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