Is it common to hire a buyer's agent for building a new house?

Kts
Home Buyer
Madison, WI

First time buyer here and we understand the benefits of having a buyer's agent. Since being able to choose different design options is critical to our decision, we would like to build a new one instead of buying whatever is available from the market. As we are not talking about an existing house, is it common to hire a buyer's agent to build a new house? In what extent is the buyer's agent involved in the building process? Would it be as effective for the buyer's agent to deal with the developer (or their agents) as dealing with another agent selling an existing home available in the market?

Answers (3)
Jon Fabri
Agent
53562

KTS... You ask a most interesting question since previous to my real estate career I was transferred 10 times and 9 of those times I purchased a new home in a new location normally not within the same state.

Believe you have several question inside your base question.
1) A realtor does much more than simply neogiate a price or insure you are getting what you have purchased. They are your friend and business associate that represents you and your family in the entire transaction... They are quite familar with working with builders ... contractors.. banks plus they are you security blanket per se since this just might be your first new home and you do not know what to expect. They should be able to keep the surprises to a minimum and help meeting deadlines etc. Please I do not mean that builders are not honest or forthwright at all... that is not the issue... the issue is for you and your family to enjoy the exciting experience of building your first home on time and under budget... A good realtor should be able to provide that "Peace of Mind" in many ways.

2) A realtor would help in the selection of the buiilder and options on lot locations ... again, the Realtor has you and your family as their client.. they represent you and not any specific builder. Normally a family would work with one builder over another because they "liked him better" since most builders are quite competitive. Obviously different builders have their own area of speciality i.e. type of home, area desired, and price range of normal builds... A realtor would or should be able to aid in this decision.

From a personal experience basis, as I said previously I moved numerous times in my previous career and normally always building a new home... I ALWAYS found a a realtor I trusted first before I made a decisions on any new house.... would never have done it any other way...

3) The final thojught is one of timing .. timing of the house being completed and your present housing situation... The realtor knows how to minimize the chaos of a double move by neogiating with the builder if he is late and possibly having the builder locate lodging for the family ... add pressure on the builder to meet the time table...or work with the new owner of your existing home for a short period of time.

I would be pleased to offer any questions or be of any assistance if you would like to have a further discussion... Enjoy the journey.... will not always be smooth but enjoy...

Jon Fabri
Frist Weber Madison
608 334 1580

Tue Aug 11 2009, 17:16
Kristi Ross
Agent
Madison, WI

Kts,

As a builder, I do have clients who were working with buyers agents and did not have luck finding what they were looking for and end up building with me. The buyers agents involvment varies but in my personal experience, they have been mostly hands-off.

I also have clients that hire me to design and build them a home - and we work together directly .

I am also a REALTOR and have worked with buyers who purchased from other builders and have helped throughout the process.

It all depends where you are in the process and your comfort level with your agent and/or builder. My relationship with my clients are such that any buyers agents typically have minimal involvement.

There are various options and many things to consider. I would be more than happy to answer any questions that you may have - about either side - to help you move in the direction that is right for you.

Thanks.
Kristi Ross
608-235-8780
kristi@EssenceBuilders.com

Sun May 31 2009, 13:24
Donna Hermsen &...
Broker
Madison, WI
FIRST ANSWER

Hello Kts,

YES! Building is much more involved than purchasing an existing home so I believe it is even more important to have a Buyer Agent. The builder (or his agent) are representing the builder and you will have no one representing your best interest with the transaction. In most cases the Seller (or Builder) pays for the Buyer Agent fee so there is usually no cost to you for this representation.
I would highly recommend hiring a Buyer Agent with any purchase. It is a very difficult market and Builders are no different than other Sellers, some are in financially difficult situations and may struggle to get the home completed. In this market you need a Buyer Agent more than ever.
If you have further questions or need some assistance, please call, 608-770-1140

Sincerely,
Donna Hermsen, Broker, ABR
& Dan O'Brien, Realtor
Bunbury & Associates
608-770-1140

Sun May 31 2009, 05:17

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