Realtor - Amanda S. Davidson: 5 Reasons You Need A Buyer’s Agent When Buying New Construction

5 Reasons You Need A Buyer’s Agent When Buying New Construction

5 Reasons You Need A Buyer’s Agent When Buying New Construction

Buying new construction sounds so simple. Pick a floor plan, lot, elevation and wah-lah your perfect new home is built and you get the keys. Except it’s not that simple and it doesn’t always go as smoothly as that all sounds. You need a trusted advisor who has your best interests at the forefront at all times. Someone who has been party to new construction purchases day in and day out to the point that it’s just all in a day’s work for them. They’ll not only guide you through every step, but they’ll also be able to resolve a potential problem before you end up with a home that isn’t as perfect as you thought.

 


Why do I need a buyer’s agent with the builder already has an agent working for them?

The agents working for the building doesn’t represent you. Who do they represent? The builder. That means their fiduciary responsibility is solely to the builder, not you.

 

Here are 5 reasons why you need a buyer’s agent when buying new construction.

 

1. Your Buyer’s Agent Represents YOU – as we just mentioned, the real estate agent working for the builder is focused on the best interests of his/her client – the builder. You need an agent who is looking out for you and focused on your best interests. If you have the financial qualifications you can go and find a builder and purchase a new home but, you’re putting yourself at a disadvantage by doing it on your own. The average person doesn’t buy new homes every day, or even every year and the agents who work for the builder can often write multiple contracts in just one day. They are there to make as much money as possible and they’re qualifications are far superior to the average home buyer. Having your buyer’s agent there to represent you will allow them to filter out the bright lights and beautiful marketing and point out what’s important so that you can decide what the best value is for you.

 

Why You Need A Buyer's Agent When Buying New Construction

 

2. Help You Hire The Right Builder – your agent will have insight on local builders – they’re not all created equal. Word travels fast and different builders have different reputations. There’s a lot that can go wrong with new construction. The weather being a big one but, material and labor shortages and incorrect options being installed are also common issues. Some builders have a flawless reputation of delivering homes on time where others are known for missing the mark. If you work with the right buyer’s agent they’ll be able to share their insight on the reputations of different builders – both good and bad.

5 Reasons You Need A Buyer's Agent When Buying New Construction 

3. Help You Find And Select The Right Home- there’s more than one new construction neighborhood to select from. Your buyer’s agent will get to know you, what you desire in a new home, and then provide you with a list of neighborhoods to choose from. They can then take you for tours of the neighborhoods that interest you. Odds are you’ll be selecting a lot after you’ve chosen the builder and neighborhood you want to be in. Different lots fit different lifestyles and it’s an important part of the decision making process. Odds are the sales rep that works for the builder will present you with a gorgeous neighborhood plan that shows the pretty trees, vibrant colors, and is quite frankly nothing more than a marketing piece. An experienced agent will request the site plan for the lot you’re interested in. That will show you the topography of the lot – does it have a strong slope? Back to a drainage ditch? Have a utility box on the lot?

Reasons You Need Your Own Representation When Buying New Construction 

4. Your Agent Will Handle The Paperwork, Negotiation And Manage The Process- buying a new home differs from buying a resale home and that includes the paperwork. Your agent will review the contract and addendums presented by the builder and make sure you’re signing what you think you’re signing. Certain addendums need to be in place to protect you and they’ll make sure they are indeed in place. If you have questions about the paperwork your agent will be by your side to answer them or gain clarification from the builder and explain it to you in a way that’s easy to understand. Negotiation, this is a big one! If you don’t have your own representation the agent that works for the builder is practicing dual agency. With dual agency, you have no one to negotiate on your behalf. In fact, a dual agent is not allowed by law to guide you as a buyer’s agent would. We all know builders want to sell homes for the highest price possible, every seller wants that. However, a builder has an added incentive to sell for as high as possible. Why? Because they want to keep the price high because it helps them sell the next home for a comparable price. That doesn’t mean there aren’t other ways to negotiate, the builder may be willing to give you other concessions such as closing cost assistance or upgrades. This will all depend on market conditions – your agent won’t have a magic wand. If the builder can’t build the homes fast enough to keep up with demand from buyers it’s not likely they’re going to discount because they simply don’t have too. A buyer’s agent will know the market conditions and be able to advise you accordingly. Your buyer’s agent will also be present for inspections. Not just with the builder, you also need inspections from your own home inspector that doesn’t work for the builder. You don’t want any surprises after you’ve moved in and your agent can guide you on what inspections to obtain.

Why You Need A Buyer's Agent When Buying New Construction 

5. Assist With Choosing Options – design centers are amazing but, they’re also distracting. All those beautiful options to pick from. What do you choose? A buyer’s agent will accompany you to the design center and advise you on which upgrades offer the highest return. Customizing your home is a ton of fun but, without the proper advice, you could spend a ton of money on items that won’t matter when it comes time to sell. Some upgrades truly do make a big difference while others just simply aren’t worth the cost. This goes for selecting options for your floor plan as well, some modifications go a long way while others just don’t go the distance. Rely on your agent to be a consultant at the design center and when selecting your floorplan.

Buyer Representation For New Construction 

Bottom line, when buying a home, not just new construction its smart business to have a buyer’s agent working for you and putting your best interests first. Buying new construction isn’t as simple as it sounds and there are many questions that can come up. You need an agent that works exclusively for you and that you trust to be your advocate throughout the process.

 

 

 

Amanda Davidson Real Estate Group

 

 

      

 

Amanda Davidson

Amanda Davidson Real Estate Group

Broker - Owner
Licensed in VA and DC

5680 King Centre Drive #600
Alexandria, VA 22315

Cell: 703.431.3755
Fax: 703.562.7057




Comment balloon 20 commentsAmanda S. Davidson • October 03 2018 11:30PM

Comments

You have highlighted 5 great reasons and buyers should definitely not be held at the mercy of the builder and not represented themselves.

Posted by Brian England, MBA, GRI, REALTOR® Real Estate in East Valley AZ (Arizona Focus Realty) 2 months ago

Hello Amanda,  Great video and great points.  You should do more videos, you are good at it.  I would like to reblog this a month or so if that is okay.

 

Posted by Will Hamm, "Where There's a Will, There's a Way!" (Hamm Homes) 2 months ago

Yes Amanda, many buyers don't realize that the builder's agent work for the builder and not the buyer!

Posted by Lawrence "Larry" & Sheila Agranoff. Cell: 631-805-4400, Long Island Condo & Home Sale Specialists (The Top Team @ Charles Rutenberg Realty 255 Executive Dr, Plainview NY 11803) 2 months ago

Good morning Amanda - there is so much value from a buyers agent along with a home inspector on new construction. 

Posted by Grant Schneider, Your Coach Helping You Create Successful Outcomes (Performance Development Strategies) 2 months ago

Hi Amanda S. Davidson - You do such a great job with these videos. Your clients are lucky to have you and your team. 

Posted by Sheri Sperry - MCNE®, (928) 274-7355 ~ YOUR Solutions REALTOR® (Coldwell Banker Residential Brokerage) 2 months ago

Hi Amanda S. Davidson, these are all great reasons why buyers need a Realtor when buying new construction. They often think the salesperson is representing them, so false. 

Posted by Beth Atalay, Cam Realty of Clermont FL (Cam Realty and Property Management) 2 months ago

Amanda S. Davidson - All wonderful reasons why Buyers should never skimp and skip a Real Estate Agent! Builder reps work for the Builder and once you're hooked, you're hooked! Many buyers have said, it really stinks not to hire a Real Estate Agent, especially when the Builder pays the realtor directly and the buyer may not have to!

Posted by Patricia Feager, MBA, CRS, GRI,MRP, Selling Homes Changing Lives (DFW FINE PROPERTIES) 2 months ago

Amanda, some buyers don't realize that the builder's agent work for the builder and not the buyer, AND  that the buyer can have their own agent representing them!

Posted by Rebecca Gaujot, Realtor®, Lewisburg WV, the go to agent for all real estate (Vision Quest Realty, Martha Hilton, Broker) 2 months ago

There is a lot to understand in new construction and often that is a first time experience for the Buyers who need the guidance.

Posted by Sally K. & David L. Hanson, WI Realtors - Luxury - Divorce (EXP Realty 414-525-0563) 2 months ago

Thanks for this important information that all want to be buyers of new construction should read and understand, Amanda.

Posted by Gabe Sanders, Stuart Florida Real Estate (Real Estate of Florida specializing in Martin County Residential Homes, Condos and Land Sales) 2 months ago

Amanda, many buyers think the sales rep works for the buyer, but could not be more wrong.  They NEED representation, and it costs them nothing!  Great post.

Posted by Joan Cox, Denver Real Estate - Selling One Home at a Time (Metro Brokers - House to Home, Inc. - Denver Real Estate - 720-231-6373) 2 months ago

Hi Amanda! First of all, I loved hearing your voice! Secondly, I think I just need to start re-blogging your posts instead of writing my own - you are always spot-on!

Great list and it's so true - 1,000% - when buying new construction, you NEED your own agent!

Posted by Debe Maxwell, CRS, Charlotte Homes for Sale - Charlotte Neighborhoods (www.iCharlotteHomes.com | The Maxwell House Group | RE/MAX Executive | (704) 491-3310) 2 months ago

This is excellent advice to share with prospective new home buyers.

Posted by Roy Kelley, Roy and Dolores Kelley Photographs (Realty Group Referrals) 2 months ago

Good morning, Amanda S. Davidson when buying a new home in Alexandria Virginia, the only agent to call is Amanda Davidson.... she'll provide you with all the reasons you need her guidance.... and Amanda will always provide good guidance.

Posted by Barbara Todaro, "Franklin MA Homes" (RE/MAX Executive Realty ) 2 months ago

Amanda, your posts are always filled with excellent information for buyers and sellers. This is such a great topic. John just closed on a new home with a client who originally tried to 'go it alone' and it was a disaster. After 8 months of building a home with no representation, they ended up not closing on it - long story - and then came to John for help. The other day at the closing table the client told the escrow officer that it was the worst mistake he ever made not involving John and having representation from the start. -Kasey

Posted by Kasey & John Boles, Boise & Meridian, ID Ada/Canyon/Gem/Boise Counties (Jon Gosche Real Estate, LLC - BoiseMeridianRealEstate.com) 2 months ago

These are give good reasons an agent should be on the side of the buyer that is buying new construction.. I think of all that buyers need and they need us.

Posted by Debbie Reynolds, Your Dedicated Clarksville TN Real Estate Agent (Platinum Properties) about 2 months ago

Good morning Amanda. This is superb and very specific. Well done and I like your video too.

Posted by Sheila Anderson, The Real Estate Whisperer Who Listens 732-715-1133 (Referral Group Incorporated) about 2 months ago

Good morning Amanda S. Davidson,

I'm so glad that Debbie Reynolds re-blogged your post! Its excellent and I'm surprised it wasn't featured with a gold star..the AR Gods must be snoozing!

Posted by Dorie Dillard CRS GRI ABR, Serving Buyers & Sellers in NW Austin Real Estate (Coldwell Banker United Realtors® ~ 512.750.6899) about 2 months ago

I can't imagine buying any home, especially new construction, without a buyer's agent!

Great post!

Posted by Sharon Tara, New Hampshire Home Stager (Sharon Tara Transformations) about 2 months ago

Great post Amanda!  Not much negotiating with builders here at the moment.  With low inventory, they have the upper hand and know that if a Buyer walks, there are ten more behind them ready to jump on the new build.

Cheers!

Posted by Ron Tissier, Defining Homes. Defining Lifestyles. (Chapman Hall Premier Realtors (404) 580-9069) about 1 month ago

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