Why use a REALTOR when buying from a builder?

Think you will save money by buying directly from the builder… Think again!

Most consumers think that when they walk into a new home builder’s office, that sales rep is there to represent them on the purchase. Well, that’s just not true. You see, those sales representatives are employees of the builder and while they owe fairness to all, they get paid by the builder at closing. They work for the builder, not for you (the consumer).

Now, I am not saying there aren’t great New Home Sales Reps out there, because there are. I’m just saying, it is in the consumer’s best interest to be represented by a REALTOR® when buying a new home.

I have represented many buyers when having a new home built and I can say that every situation is unique. All builders work differently from one another, they offer different incentives, package their upgrades differently, etc.

There is a lot to know when buying a new home. You need to find the best suitable lot location, select the best upgrades, finishes & features and make many choices that you’ll be living with for a long time. These are not only for your needs today, but down the road and they affect your wallet.

REALTORS® are in the business daily and can make suggestions that consumers may not otherwise think about, such as placing electrical outlets in spots to cater to your entertaining lifestyle or adjusting the placement of the home to make your backyard as large as possible.

I know I have been able to negotiate:

  • Price
  • Lot Premiums
  • Incentives and Closing Cost Incentives
  • Additional Upgrades
  • Appliances
  • Window Coverings

Do New Home Builders Negotiate?

Another big advantage is we are another set of eyes during the build out. There will likely be several walk-thrus and we can find additional mistakes before it’s too late (or costly) to fix them.

For a recent client’s closing, I was able to negotiate for them to receive an extra slab of concrete in the backyard, cabinets in the laundry room, an extra electrical outlet and the waiving of late closing fees (due to a last minute change in lending).

Some consumers can feel intimidated by the builder reps or the construction superintendents during these walks so us REALTORS® are good to speak up on your behalf to ensure the right thing gets done. We’re also available throughout the 5-6 month process to answer any questions that arise.

The best part is that it costs the consumer NOTHING to be represented by a REALTOR®!!! That’s right, the builder pays our commission at closing. The price isn’t changed for the home you want to buy whether you have a REALTORor not. The builder just makes more money when you don’t and you don’t have representation either.

Those new home purchase contracts are not the industry standard we use on the resale side, they’re created by each builder to use in their subdivisions and guess what… they more than likely are written to protect the builder a whole lot more than you, the consumer. That’s why having a REALTOR® review these before signing is a professional set of eyes to make sure you fully understand the terms and conditions before handing over any funds.

Most builders prefer no outside REALTOR® involvement (so they can make more $$$), which is why they have policies in place that make it so the REALTOR® needs to accompany any prospective purchasers on their first visit to the community. Remember this before you go walking into a bunch of sales offices… if you go alone, you’re likely going to be on your own from there on out if you decide to buy.

Would you go into a big courtroom without an attorney representing you? Probably not… so why would you walk into a new home builder without a REALTOR®?

Justin Schlegel can assist you on your next new home purchase… call him today @ 623-203-2264 to learn more about the current marketplace.

Stay in Touch

Keep current on Real Estate news, market updates and relevant information!

Get in Touch

We are located on the Northwest corner of 75th Avenue & Thunderbird Road in Peoria, which is anchored by Basha’s Grocery Store. We are on the end of the center towards 75th Avenue and just across from BBVA Compass Bank (suite 9). You’ll see our sign on the building. Come on in, we would love to see you.