Why you need your own agent if you are building a new home

Have you ever stopped in at a builders model home in a new and upcoming subdivision and then been hounded for months by the on-site agent to come back and give it a second look or go see another subdivision being developed by the same builder? These aggressive sales tactics are an integral part of on-site training for most builders’ agents. The tactics obviously work or they would not continue to train them however most of these captive agents are bound by contract to only show homes in their builders developments so they are not likely to tell you about a great home less than .5 mile away built by a competitor that is 10k less and is offering 20k in incentives or the one year old home, same model one street over that the seller must sell because they are unexpectedly being transferred out of town.

These examples are just some of the reasons why it is in your best interest to have your own agent that works for you exclusively navigate the purchase of a new home or construction of a new home in a community. Other advantages include price negotiations, contract review, construction oversight and coordinating the inspections, closing, etc.

The best part is that it costs you nothing! The seller or builder in this case pays your agent to represent you. Would you sue someone and use the same attorney the other party is using? Of course not. Partly because the attorney would tell you it is a conflict of interest to have inside knowledge from both parties. This is no different. If you buy a home with the agent that is representing the seller (builder) you have the same conflict. This is what we can a dual agency and according to dual agency agreement the agent representing both parties is not able to provide advice about pricing or any inside knowledge they just prepare the contract and present it.

Is this the kind of representation you want on one of if not the largest transaction in your life? I doubt it so please do not allow an on-site agent to tell you that you can not have representation or they will get you a better deal if you use them exclusively. This is simply not true and most on-site agents will recommend you get your own agent to advise you throughout the process. Make sure any agent you choose has experience with new construction and is familiar with the local builders. Bottom line – have representation that has your best interest.

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