Hello. We are planning new construction home from developer( DR Horton, Centex, Ryland). Should we hire realtor or just go without it? Thank you.

Asked by Tes Gung, Palm Beach County, FL Thu Apr 7, 2011

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Heather Kight, Agent, Austin, TX
Fri Apr 8, 2011
It's a common misconception that you might be able to get a lower price on new constrution if you do no use a Realtor. In fact, homebuilders pay Realtor commissions out of their marketing budget and they work very hard with the Realtor community to develop strong relationships.

A Realtor may be able to negotiate some additional upgrades, a reduced price or other terms that will be in your best interests. The Realtor can also help you review the loan terms offered through the builder's preferred Mortgage Company to determine if you are getting the best mortgage deal for the property.

If you are moving to Austin, I'd love to help you!

Heather Kight
Keller Williams Austin
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Susan Nugent, Agent, Katy, TX
Fri Apr 8, 2011
Hello Tes,

Good news, you do not hire a Realtor, but you should call one that has some experience in negotiating with builders. Especially a National home builder.

I have a lot of experience in working with clients and New Home Builders. You will end up with a better deal and favorable situation with a Realtor that has done this before. They know the right questions to ask and how to negotiate.

The Builder is the seller and they want the best price they can attain from you. You need someone on your side! Do not go to the negotiating table without an experienced Realtor who has done this for others and has a good track record.

Where are you purchasing, what state? Are you in the Houston area?

I hope this is helpful and wish you the best.


Suzie Nugent, Real Estate Agent with Realm Professionals Katy, Texas
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Don Groff, Agent, Austin, TX
Fri Apr 8, 2011
Hi Tes,

You always want to use an agent when buying a builder home. They will never give you a discount when you do not use one and never forget the builders agent works for the builder and is trying to get him top dollar as that is how he gets paid. The Realtor commission is not tied to the the home price but is in reality a separate marketing expense all together.

There are so many steps in the home buying process you truly need somebody on your side or you could risk losing a lot of money.

You can read my blog article on buying a new builder home right here on my Trulia blog in my profile or go there directly with the link below..


Good luck on your purchase!

Don Groff
REALTOR | Mortgage Broker | Consultant
Buy - Sell - Lease - Invest
Keller Williams Realty | 360 Lending Group
o.512.669.5599 m.512.633.4157
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Onyx Benavid…, Both Buyer And Seller, Laredo, TX
Fri Apr 8, 2011
Get a Realtor, would you represent yourself in a legal matter? A Realtor is trained to help you and you alone. I always recommend working with a Realtor, they have your interest at heart. Ask if they have experience working with new construction and especially a builder. A Realtor will look for the best deal and contributions from the builder. I have seen some builders not wanting to work with a Realtor, if so why. So it is best to have someone that can advise you and represent you. Good Luck.
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Marie Souza…, Agent, Centerville, MA
Fri Apr 8, 2011
Get an Agent! A Top Producer, who offers Buyer Representation. They will look out for your best interests throughout the whole process & make sure you are not overpaying for a property.
Good luck!
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James Gordon…, Agent, Hamilton, OH
Fri Apr 8, 2011
Tes I have some clients currently that are working with a builder. It was surprising that they told the builders rep that they were "working with an agent" and the builders rep priced out a house for them. When "we" went back in together the price of the home somehow dropped 13,000.00. Love the rep but I don't think she knew it was me that was working with the couple.
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Corey Buck M…, Agent, Jacksonville, FL
Fri Apr 8, 2011
You will have no more purchasing power without a Realtor, and walking in without representation could cause you to be "oversold". You will be walking into Model Homes that have all the glitz and glamour, up all of that comes at an upgraded price. You will know what the additional costs are, but will you really be able to control yourself from going overboard and feeling you must have it all. Having someone to represent you will allow for a buffer and give you someone whom you can discuss the cost-benefit analysis with. It also gives you a an extra set of ears to hear what your eyes are not listening to.

Some advice I give clients when they are buying a new home: 1) Don't purchase the Model. Most people are visual, they can get a sense of living in a space based on seeing it. Therefore, in most new home communities, the Model home is the one duplicated. When it comes time to resell, having something different than the norm is a benefit. 2) Check for the little things. You are seeing things completely decked out and furnished, but are you noticing how many hose bibbs there are and where they are located. Do you have an exterior electrical recepticle and will it be enough to run your Christmas lights. Is the exterior lighting sufficient for your future needs (ie: flood lights on the corners of the home). Addressing these little issues upfront will save a lot of additional rehabilitation costs if you were to have them installed later. 3) Get clarificaation on the finishes. Knockdown ceilings vs. Smooth Finish, 5 1/4" baseboard vs. 3 1/4" baseboards, Shoe moulding over hard surface flooring, Door hardware finish (and making sure it matches the hinges).

Long and short, the Builder will probably hand you a specifications sheet as an aswer to your questions. But the amount of detail you cover up front will definitely make your end product that much more enjoyable for you.

Best of Luck, and if you would like to have a referral for the area you are considering buying in, please feel free to contact me.
Web Reference:  http://www.coreybuckmann.com
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