Should I buy a brand-new home with a realtor instead of with the builder?
Are you in the market for a brand-new home? Congratulations! It’s an exciting time, but it can also be overwhelming. One of the first decisions you’ll need to make is whether you should buy a brand-new home with a REALTOR® or directly with the builder. There are pros and cons to both approaches and it’s important to weigh them carefully before making a decision.
In this article, we’ll explore the benefits and drawbacks of each option, so you can make an informed choice about how to proceed. We’ll cover everything from the role of a REALTOR® in the new home buying process to the advantages of dealing with a builder directly. So, let’s dive in and answer the question: Should I buy a brand new home with a realtor instead of with the builder?
The Role of a Realtor in Buying a New Home
When you work with a realtor to buy a new home, they will act as your representative in the transaction. They will work with you to identify your needs and preferences and help you find
properties that meet your criteria. Once you’ve found a home you’re interested in, the realtor will handle the negotiations and paperwork on your behalf.
Pros of Using a Realtor
- Expertise: Realtors are experts in the local housing market and can provide valuable insights into neighborhoods, schools, and other factors that may affect your decision.
- Time savings: By working with a realtor, you can save time searching for properties on your own. They will provide you with a list of homes that match your criteria, so you don't have to spend hours browsing online.
- Negotiation skills: Realtors are skilled negotiators and can help you get the best deal on your new home. They will work with the builder to negotiate the price, upgrades, and other details
of the transaction.
Cons of Using a Realtor
- Commission fees: Realtors typically charge a commission fee for their services, which can add up to thousands of dollars. This fee is usually paid by the seller, so it shouldn’t affect you
in this situation.
- Limited inventory: Some builders may not work with realtors, which can limit your options when searching for a new home. Additionally, some realtors may only show you properties
that are listed on the Multiple Listing Service (MLS), which may not include all available homes. A good Realtor can find you those off-market homes that the builder might be trying
Dealing with a Builder Directly
If you choose to deal directly with a builder, you’ll work with their sales team to select a home and negotiate the terms of the transaction. This can be a more hands-on approach, but it also requires
you to do more of the legwork yourself.
Pros of Dealing with a Builder
More control: When you deal directly with a builder, you have more control over the process. You can choose your lot, your floor plan, and your finishes, which can result in a home that's
more customized to your needs.
Direct communication: Dealing directly with a builder means you have direct communication with the person in charge of building your home. This can be helpful if you have questions or
concerns during the construction process.
Cons of Dealing with a Builder.
Lack of representation: When you deal directly with a builder, you don’t have a realtor to represent your interests in the transaction. This means you may have to negotiate with the
builder’s sales team on your own, which can be challenging. The person working in the show home works for the builder, not you.
Limited expertise: Builders are experts in construction, but they may not have the same level of expertise as a realtor when it comes to the local housing market. This means you may not
get the same level of guidance and support when making important decisions. They don’t have access to comparable sales, and have no fiduciary duty to show you what similar homes are actually selling for in the area.
Frequently Asked Questions
Q: Can I use a realtor to buy a new home from a builder?
A: Yes, you can use a realtor to buy a new home from a builder. However, some builders may not work with realtors, so it’s important to check with the Realtor first.
Q: How much does it cost to work with a realtor to buy a new home?
A: Realtor commission fees vary depending on the market and the services provided. Typically, the commission fee is paid by the seller, so you shouldn’t have any fees associated with buying at all!
Q: Can I negotiate the price of a new home with a builder?
A: Yes, you can negotiate the price of a new home with a builder. Builders may be willing to offer discounts or upgrades to secure your business.
Q: Do I get a better deal going through the builder directly?
A: Not necessarily. The builder will sometimes try to say you can save money on commissions. But at the end of the day, it’s rarely actually offered or reflected in the end purchase price. Also your
Realtor should have industry contacts and will know the best way to negotiate with certain builders, resulting in you getting a better price with the Realtor.
So, should you buy a brand-new home with a realtor instead of with the builder? The answer depends on your individual needs and preferences. Working with a realtor can provide valuable
expertise and save you time, but it also comes with commission fees and limited inventory. Dealing directly with a builder can give you more control and communication directly with the builder, but it also requires more legwork and may not offer the same level of representation.
Ultimately, the decision is up to you. Consider your budget, timeline, and priorities, and choose the option that best fits your needs. Whether you decide to work with a realtor or deal directly with a builder, remember to do your research and ask plenty of questions along the way. With careful consideration and the right support, you can find the perfect brand-new home for you and your