Should I Use a Real Estate Agent to Buy New Construction?

Whether or not to use a real estate agent when buying new construction depends on various factors and your personal preferences. Here are some considerations to help you make an informed decision:

Using a real estate agent to buy new construction

Builder’s Representation:

  • Keep in mind that the on-site sales agents at new construction developments work for the builder, not for you. Their primary responsibility is to the builder’s interests.
  • Having your own agent can provide you with someone who represents your interests in the transaction.

Negotiation Skills:

  • Real estate agents are experienced negotiators and can help you get the best deal. They may be able to negotiate upgrades, closing costs, or other incentives on your behalf.
  • If you’re comfortable negotiating and understanding the intricacies of the new construction process, you may feel confident handling it yourself.

Understanding the Contract:

  • Real estate transactions involve complex contracts. An experienced agent can help you navigate through the paperwork, ensuring that you understand all the terms and conditions.
  • If you’re well-versed in real estate contracts and comfortable reviewing legal documents, you may choose to proceed without an agent.

Market Knowledge:

  • A local real estate agent typically has knowledge of the local market and can provide insights into whether the builder’s pricing is fair and reasonable.
  • Agents also have market statistics. They can pull the builder’s past sales to determine what costs were paid, closed pricing, and what is typical for negotiations in the area. Builders are not going to give this information away so they rather you not have an agent – it benefits their bottom line.
Using a real estate agent to buy new construction

Builder Relationships:

  • Some builders have established relationships with specific real estate agents. Using an agent recommended by the builder might provide you with additional insights or advantages. However, these agents will work with your agent to provide all necessary information.
  • On the other hand, having your own agent ensures that your interests are the top priority.

Financial Considerations:

  • In many cases, the builder pays the buyer’s agent commission. This means that having your own agent may not cost you anything extra. 
  • If you choose not to use an agent, the builder may not offer a discount, and the commission intended for a buyer’s agent may simply go to the builder. 

Guidance through the Process:

  • The process of buying new construction can be complex, involving various stages from choosing finishes to inspections. An agent can guide you through each step.
  • If you are comfortable managing the process independently and doing your research, you may opt to proceed without an agent.
Using a real estate agent to buy new construction

Ultimately, the decision to use a real estate agent when buying new construction depends on your comfort level, experience, and the complexity of the transaction. If you’re unsure, it may be beneficial to consult with a real estate professional to discuss your specific situation and receive personalized advice.

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