Why You Need A Realtor For A New Construction Home

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Building your dream home can be exciting. Depending on what stage you decide to purchase, you will be able to choose your lot, the floor plan, the exterior design, the interior finishes and any upgrades. But it’s a common misconception when you’re buying a new constructed home that you don’t need to work with a Realtor®. However, that’s not necessarily true.

Below are some good reasons why it makes sense to have a Realtor represent you when building your new home.

1. The sales agent works for the builder. When you walk into a model home, the friendly salesperson who greets you is employed by the builder. According to Nyah Chapman , a Realtor with Atlanta Fine Home Sotheby's International Realty in Georgia, “That is not necessarily a bad thing, but in the end, they’re trying to generate sales for their boss – the builder.” Therefore, they may not work to your advantage.

2. Your real estate agent is your advocate. Your Realtor is obligated to work toward your best interest. “Working with a Realtor, gives the client another advocate to help protect their interests,” says Nyah. “The Realtor is going to make sure the buyer knows what their rights are, so they don’t feel like they have to be forced into something.”

And they can give you perspective on things that may affect future resale as well.”

3. Hiring a Realtor comes at no cost to you. When working with builders, there is no additional cost for working with a Realtor. The builder will pay your agent’s sales commission. 

4. An agent can help you choose the right builder and neighborhood. “An experienced realtor can show you what the neighborhood values are currently for resale, which will help give you perspective when it comes to building your house, so you’re not necessarily over-building for the neighborhood – at least, not without knowing that you’re doing so,” says Nyah.

5. A Realtor can help you make the right choices for your budget. New construction can be overwhelming, because there are an endless number of choices to select. It is really easy to want to buy a million dollar house, but you only have a $200,000 budget. A good Realtor can help guide some of your decisions within your budget, and help you make sure that your budget is in line with what you’re trying to accomplish.”

6. An agent can help with lot, floor plan and upgrade selections. The right Realtor can help guide you by making recommendations on items that appeal to a larger number of future buyers, if you think you may sell your property in the future. For example, the lot you may be thinking about buying may save you some money upfront, but it may not be the best lot selection when it comes to resale value. 

Also, when working within your budget, an agent can guide you on what items are better to install now versus items that are easier to improve upon later, such as a basement versus a bonus room or 2-foot bump-outs versus upgraded flooring.

Additionally, “as you’re walking through the model home, most Realtors will ask the sales agent to point what the base price of the home is, what upgrades are included in the model home, and what the current price of the model is with the upgrades,” says Nyah. “It helps you put what you’re looking at into perspective and what the cost truly is.”

7. A Realtor will be aware of builder promotions and may be able to help you help negotiate a better price and terms. Negotiating the home price depends a lot on supply and demand as to whether the builders will negotiate or not. Particularly if it is a spec house versus true new construction. Currently, there is less inventory out there for buyers to choose from. And the demand is starting to increase. That usually creates a situation where there is a larger demand for new construction as well. So if the builders are busy, they are less likely to want to or be willing to negotiate.” However, realtors are aware of promotions that builders are advertising, so they can pass that information along to you.

8. An agent will guide you through the building process, if needed. “When talking to your Realtor, it is important to clarify what your expectations are concerning their presence throughout the process, says Nyah. You may want your agent to attend the selection process, the walk-through and other meetings with the builder. 

Also, prior to closing, your agent will make sure you have all the information you need. Because it can sometimes be more difficult to get things accomplished after closing than prior to closing. Your Realtor can be a communicator to make sure you have all the “I’s” dotted and the “T’s crossed.

9. Your agent can help with your lender selection. Sometimes, builders have relationships with certain lenders. They will try to offer some incentives so you will work with that lender. But it’s always a good idea to talk with another preferred lender to make sure what you think you’re getting, you are in fact receiving. At the end of day, you need to compare apples to apples. And the incentive is not always the best option in all cases.



As you can see, hiring a Realtor to represent you when purchasing a brand-new home provides many benefits. 

But if you decide to work with an agent, just make sure the next time you  stop by a model home to take a look, notify the sales rep that you’re working with a Realtor. Or, ideally, have your agent visit the model home with you.

“It’s always a good idea to clarify upfront with the sales rep that a Realtor is going to represent you and that the builder is ok with that,” says Nyah.  



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