If you are interested in purchasing a newly constructed home, and assume you do not need to enlist a real estate agent to help with new construction because you are buying directly from a builder.

Please consider the following.

Buyers Need Representation To Tackle New Construction Challenges

Model homes are staffed by onsite seller’s agents who work for the builder—no surprise there! An experienced real estate professional knows the ins and outs of the home buying process and represents your best interests.

Model homes always look incredible because they are meant to showcase all the options offered. They are often packed with upgrades, extras, and trendy design features. And most, if not all, are professionally landscaped, decorated, and staged.

Builders display these upgrades to make buying a new home more attractive to home buyers. Your agent’s knowledge of the market and other homes in the surrounding neighborhood can help guide you to ensure you are not wooed by pricey upgrades and may actually be less expensive to put in later, instead of rolling the cost into a 30-year mortgage.

Negotiation Can Be A Challenge When Buying New Construction

Builders often are not willing to negotiate on the price of a newly constructed home because it sets a pricing precedent for future sales in the neighborhood. But your experienced agent may be able to work out a deal with the builder’s agent to save you money, buy asking the builder to pay closing costs or include some upgrades at no additional charge.

Builder’s Purchase Contracts Can Be Confusing

Purchase contracts on new construction are very different from traditional resale purchase contracts, which can be confusing and overwhelming.

It is best to let an agent, handle all the contractual paperwork, making certain that the contract is written to protect you as opposed to the builder.

A builder will likely want you to use their preferred lender, and they often offer incentives to get them to do just that. The experienced agent is an invaluable resource, helping you make informed decisions and ensuring that you—and, most importantly, understand—all the information needed before you buy new construction.

Remember, some developments require your agent to accompany you on the model home tour and register as a buyer’s agent prior to or during your first visit to the community.

If you opted to stop by the models or the sales office without your agent, you might lose the opportunity to have them represent your best interest in the transaction.


– Michele Hunt, REALTOR®