If you go to a new construction site, you'll meet the sales agent for the developer, who may try to convince you not to use a realtor for your purchase. Note, I said "Sales agent". Not Real Estate agent! He or she is a sales person, trying to sell you something, and sometimes they are not even Realtors. That person is employed by the builder, and it is their job to get the builder the most amount of profit they can. But buying a new construction home is still a real estate transaction. There is a LOT of legalese and paperwork that needs to happen, and the builders are professionals who know what they are doing! If you don't have a lot of Real Estate experience, you are at a disadvantage.
So do you NEED a Realtor to buy new construction? Technically, No. But, having your own experienced representation can often save you a lot of money and headaches! And the builder is paying the commission not you! And, generally speaking, the builder is paying the SAME amount of commission whether you are represented or not... the difference is that all the commission goes to that sales agent.
Even our own office manager (who knows a LOT about real estate) elected to use a Realtor for the purchase of her brand new home under construction at Tuscarora Village. We were able to negotiate to have a third party independent inspector come out and inspect the construction, which was very helpful. It keeps the builder on their toes so they don't cut corners during construction, and it gives you piece of mind that you're getting the quality you expect from your builder!
There's also a lot of contract work that your own Realtor will take care of for you and make sure there are no gotchas in the contract. As an example, earlier this year I had a client who put an offer on some new construction and when the deal started to get squirrely I was able to get them out of the contract with no money lost!
So, in short, the question of "Do You Need a Realtor to Buy New Construction?" No. But, that question should be rephrased as "SHOULD you use a Realtor to buy new construction?" And the answer is YES! Always use a realtor! The builder is NOT there to look out for you. You are not their "client". You are their "target". They might even claim to be able to "save you money", but often you will not actually sign any buyers paperwork with them. When you sign a buyers agreement with a Realtor (not with a builder's sales agent), you are getting a partner who could care less whether you buy from Builder A or Builder B, even though that Builder will be paying the commission.
Often Builders will try to get you to use their financing also, but again, is that the best thing for you? As your Realtor, I have multiple lenders we can work with to make sure you get the best rate locked in when you need it locked in.
And sometimes, just the fact that a Realtor is in the room representing you keeps them honest. If you are by yourself, they may see you as an easier target. But, when you have representation, they are less likely to try anything "shady". I'm not saying all builders and builders sales agents are bad people. But, they have a job to do, and that job is NOT representing you.
Anecdotally, you can search for this issue all over google and you'll find tons of stories about deals gone south, or people feeling like they got cheated because they weren't represented. Here's a great reddit thread on the topic from a few years ago
When you sign with me, I have a fiduciary responsibility to make sure you get the best deal possible. I represent you and ONLY you. You need a professional to represent you! If you're interested in new construction, I'd be happy to work with you to make sure you get the best deal possible! Give me a call!
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