Is it necessary to have a agent to buy a new home under construction?

Asked by Ournewhome2011, Keller, TX Thu Nov 4, 2010

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Jeanne Feenick’s answer
Jeanne Feeni…, Agent, Basking Ridge, NJ
Tue Nov 9, 2010
I agree with the prior posters that you will be well served if you do use a realtor working on your behalf. One point that I do want to stress that with new construction, it is usually (at least her in NJ) critical that your first visit to the property be with your agent and that your agent "registers" you with the builder/sales office. Otherwise, your relationship may not be honored and your agent may not be paid.

Jeanne Feenick
Unwavering Commitment to Service
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1 vote
Kelly Martin, , Keller, TX
Sun Nov 7, 2010
Having worked for over 10 years in the home building industry with one of the areas largest builders as a Senior Sales Consultant, I know the in’s and outs of the new home business. After leaving the building industry and becoming a Realtor I feel I bring the inside knowledge that a buyer needs to help with the building process. Here are some reasons why using a realtor in you transaction is a good idea.

1. A Realtor works on your behalf. While the sales person is helping you, the work for the builder and they have their best interest in mind. A Realtor is your advocate and owes you fiduciary duty, a sales person does not.
2. You will not get a better deal if you don't use a Realtor. Most builders have Realtor commission in a totally separate budget, and if you ask, the truthful ones will tell you that.
3. A Realtor will act as a liaison in negotiating with the builder. We are the professionals , we do this every day.
4. This is a huge investment that will effect your family for years to come. You want the knowledge about the area, the market,comparables,schools, taxes,etc that we can provide.
5.Because we are active in the market we know about the builders reputation, and if they have changed there name and why.
6. Yes options or "upgrades" will cost money and yes builders mark them up, they are in the business to make money, but an educated Realtor knows what ones are easiest to negotiate, and get done.
7.Your Realtor is always available. You can call us with questions, and receive a call back the same day. Most of us work 7 days a week while a Sales Person and Lender work normal 9 to 5 business hours
8.We will be at your closing to make sure that your paper work is what was agreed upon and that the transaction goes smoothly.
9. If you are moving from another state a Realtor will handle this side of your transaction while you are getting ready to move to your new town. We will attend builder meetings, home walks and inspections. We will make sure your home is finished ,ready, and in tip top condition for moving day.
10. We are here after closing. Our business is built on relationships. We do what we do because we love our job, and know that our job goes on long after you have moved in. We are available for and are eager to help with advice and assistance long after closing. You have developed a long lasting relationship with a professional.

I am happy to assist you with any of your real estate needs. I am very knowledgeable in the building and the real estate business, and look forward to helping you build your dream.

Kelly Martin
Texas Sold Team Realty
Keller Texas
1 vote
Dallas Texas, Agent, Dallas, TN
Fri Nov 5, 2010
YEEEEEEEEESSSSSSSSSSSSSSSSSS... always ... ask yourself do your know real estate contract law? Are you trained in verbage ? How to detect hidden meaning of a statement... ?

#1 question I anwer worldwide when a buyer purchased a home without a Realtor from a builder... NOW being sued, house not built according to contract , problems with the builder, did not follow terms and conditions of contract., loss of escrow money... JUST NAME A FEW....

Realtors represent and defend their client... in these situations great have at time "good cop / bad cop"

ANOTHER EXAMPLE; Would you go to court have opposing attorney represent you ? Probably not

Lynn911 Dallas Realtor & Consultant, Loan Officer, Credit Repair Advisor
The Michael Group - Dallas Business Journal Top Ranked Realtors
1 vote
Kathy Sears, Agent, Bronston, KY
Thu Nov 4, 2010
I have been on both sides of this as I have also been around construction and also represented several builders, but a real estate professional who is familiar with new construction and following through with the builder and the buyers needs is essential in my opinion. I cannot tell you how many times I am certain a deal would have fallen apart if it weren't for a Realtor being the buffer between an emotionally charged overexpectant buyer and a penny-pinching business-minded (and proud) builder.
1 vote
Don Groff, Agent, Austin, TX
Mon Jan 31, 2011
It definitely is not but at the same time it makes no sense to do it yourself. You will not get a better deal and you just may get taken if you are not experienced in the market. You have to remember that the sales representative works for the builder and the builder alone. His job is to get you to sign on the dotted line and lock you into a contract that benefits his employer.

When you use a Realtor to represent you during the buying process they can help you negotiate a better price by using market statistics. New Build homes are often not in the MLS so a Realtor can offer you similar comparable homes so you can make an educated offer. The Realtor commission is not paid out of your home price. Builders have separate marketing accounts so our compensation is not going to cost you but going it alone cold very well.

You can read my blog article on my website or on my Trulia Blog. It goes into detail on how it is to your benefit to use an experienced Realtor when buying a new home. Make no mistake, you will pay more when you build a new home but you want to make sure you get a fair deal at the same time.

So find a good knowledgeable Realtor who has dealt with builders before. If you would like to read my blog article on this topic you can find it here on Trulia:…

Good luck to you,

Don Groff
REALTOR | Mortgage Broker
Keller Williams Realty | 360 Lending Group
0 votes
Nanci Zimmer…, , Cedar Park, TX
Mon Jan 31, 2011
This question was posted on November 4th and has already been answered
0 votes
Consumer, Home Owner, Boise City, Boise, ID
Mon Jan 31, 2011
Interesting that almost every answer posted to this question is a real estate agent or broker. What none of them will tell you is that they are receiving a check for representing you as a buyer. They lead you to believe that the builder will not charge you for thier commission being paid, but you would have to be crazy to beleive that the builder is not going to charge the buyer for this transaction. They may not disclose it to you, but I guarantee they're going to pass the cost on. The posts from all these "agents" should tell you something about thier interests too...I would submit that your probably just as smart and capable of finding the data you need to buy a home without a Realtor...
0 votes
Stephanie K, Agent, San Antonio, TX
Tue Nov 9, 2010
Not necessary, but nice. Those charming reps that help you out when you walk through the door of the builder's model home work for the builder's interests - and bottom line. It should not cost you anything to have representation on your behalf.

A good agent can take a great deal of pressure off and save you time and money during the building process. This is particularly true if you choose an agent with experience in the new home construction field.

Personally, I check on construction progress, send photos and videos to out of town clients, arrange for inspections at different times during the course of construction, attend meetings with the builders and construction superintendants, and generally do whatever my client needs as far as assistance during the building process.

I just did a blog today about the comparison of new and resale homes in San Antonio. You might want to check it out: It's not exactly on topic, but close. It may give you some food for thought. Good luck in your home building endeavor!
0 votes
Don Groff, Agent, Austin, TX
Fri Nov 5, 2010
You really should but it is not necessary. The commission paid to an agent is not coming out of your home price. They have a separate marketing account for these fees. You will not get a better price going it alone. You may grossly overpay though. The builder sales representative works for the builder. Get a knowledgeable agent. Always compare what other homes new and not so new are selling for. You will pay a premium for buying a new builder home but that's the price for getting to pick out exactly what you want.

You can read my blog article on buying a new build home on my website below or in my blog section here on Trulia... I go into much more detail.

Good luck to you.
0 votes
Bill Eckler, Agent, Venice, FL
Fri Nov 5, 2010
Tom appears to be a man of few words but has nailed this question......depending on the agent you use and their experience and first hand knowledge of the community, and agent has the potential of saving you considerable money while protecting your interests.

You can go it alone but it's ill advised..

0 votes
Scott Miller, Agent, Boca Raton, FL
Fri Nov 5, 2010
Is it necessary to have an attorney to walk into a courtroom when you're fighting for custody of your children?


Scott Miller, Realty Associates, Boca Raton, FL
0 votes
Lucy Puniwai, Agent, Haslet, TX
Thu Nov 4, 2010
Hi there,
Since Keller is my area of expertise I would like to let you know that you absolutely do NOT require a Realtor to buy a new home. I will also share information from home buyers that wished they had used a Realtor:
1. Builders pay a Realtor's commission from a separate budget from the construction budget.
2. Depending upon the Builder, there are items that are negotiable when you have a Realtor that knows what
to ask for in addition to the basic allowances a Builder would include in the base price of the home.
3. Understanding the contract, earnest money deposit, inspection,finance and closing processes are what a Realtor is ethically required to provide a home buyer as a knowledgeable professional.
4. Negotiating the sales price using a comparative market analysis is also a benefit to you.
5. Sales persons will sell you a home, turn you "over" to the builder in which has contractors working on various phases of your home. Then they wait to hear back from your Lender who is in some office crunching numbers.
6. A Realtor is the only person you have as a resource through the contract to close process that will inform you as to the progress in your purchase.
7.A Realtor provides beneficial information when you need to select various services in the area including an inspection before the Builder's warranty expires.
8. You can always call your Realtor with questions, and receive a call back the same day. Most of us work 7 days a week while a Sales Person and Lender work typical business hours.
9. Your Realtor is present with you at the Closing table to ensure that everything that was initially agreed to is what is in your final documents.
10. After closing and you are handed your keys, you have developed a relationship with a professional that is always in your corner and you can call on for advice if , for instance you have not received your HOA key to the pool or you are in a quandry about the schools,churches or anything outside of just the home purchase.

I value my relationship with home buyers and understand that this home purchase is the biggest financial commitment anyone will make in their life. If you decide to sell your home in the future, I would want you to know that your have a Realtor that has enough confidence to help you sell a home that they helped you to purchase.

If you would like to contact me for more information, feel free to send me an email at:

Best wishes,

0 votes
Jerry Cibuls…, Agent, Southold, NY
Thu Nov 4, 2010
Working with an agent who knows new construction and all of the nuances of this process will always be helpful to a new construction home buyer. The agent should also provide a checks and balance to the process to be sure you are getting the home of your dreams.
0 votes
Kevin Olson,…, Agent, Colorado Springs, CO
Thu Nov 4, 2010
Not necessary but it is an added benefit you have that should be of no cost to you. If you can have someone representing your best interests for no cost, why not take advantage of it?

Good luck,
0 votes
Tamika Goree, Agent, Arlingon, TX
Thu Nov 4, 2010
Hi Home Buyer,

It isn't necessary but highly recommended. A Buyer's Agent is going to look out for your best interests while the Sales Counselor is looking out for the best interest of the builder. The agent's commission is paid by the builder so there is no charge to you.

I went on a listing appt last week with a couple looking to sell their house. They purchase their house 2 yrs and wasn't represent by an agent at the time of their purchase. After running the comps, what they owed on the house isn't what the area was selling for. I ran the comps from when they purchased the home. I found that there was a buyer who also purchased a new inventory home (same floorplan & same builder.) The other buyer WAS represented by an agent and paid $20K less than the couple I met at my listing appt. Due to this they have to postpone selling their home. It's very sad but a Builder will take advantage if given the opportunity.

I worked strictly as a Buyer's Agent in new home construction for 3 yrs and have worked with just about every builder in the DFW area. I would highly recommend you be represented by an agent. They will be able to negotiate the asking price for you.

Please feel free to call or email me if I can be of any assistance. I hope to hear from you soon!

Make it a Blessed Day!

Tamika Turner Goree
Keller Williams Realty Coppell
Cell: (972) 697-1178
Fax: (682) 222-1049
0 votes
Greg Fowler, Agent, Dallas, TX
Thu Nov 4, 2010
As others have noted, using an agent is not required, but is a very good idea. Also, as stated below, most builders will pay the Realtors commission. What wasn't stated is that you don't get this money back if you don't use a Realtor. In fact, you might pay more. Realtors are skilled at negotiating contracts and may indeed get a better deal for you than you can reach on your own.

Realtors can also provide great insight not only on the differences between builders, but the differences between subdivision locations and other factors that may be important for the long term value of your investment.
0 votes
Tommy Burris, Mortgage Broker Or Lender, Baton Rouge, LA
Thu Nov 4, 2010
Absolutely NOT necessary.


(think used car lot)
0 votes
Nanci Zimmer…, , Cedar Park, TX
Thu Nov 4, 2010
As Alan stated, it is a good idea to have an agent representing you- and your needs. Is it necessary... no... but normally the builder will pay the commission so it does not hurt to get more advice and someone backing your needs.

Best of Luck!

0 votes
Alan May, Agent, Evanston, IL
Thu Nov 4, 2010
is it NECESSARY? No, but it's a really good idea. Realtors know a great deal about negotiation and what a developer will and won't accept during negotiations, and beyond.
0 votes
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