9 REASONS why you should use a Realtor to purchase a New Construction Home
Building your dream home from the ground up can be exciting. You get 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 newly 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 real estate agent 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 Jeff Miles,
a Realtor with F.C. Tucker in Indianapolis, “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 Miles, who has 11 years of experience as an agent. “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
4. An agent can help you choose the right builder and neighborhood. “An
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 Miles.
5. They can help you make the right choices for your budget. “New
construction can be overwhelming because there is an endless number of choices to
select,” says Miles. “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 they can help make sure that your budget is in line with what you’re
trying to accomplish.”
6. An agent can help with the lot, floor plan and upgrade selections. A 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, says Miles. 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
Miles. “It helps you put what you’re looking at into perspective and what the cost truly
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,” says Miles.
“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 Miles. 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,” says Miles. “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,” says Miles. “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 the day, you need to compare apples to apples. And the incentive is not always the best
option in all cases.”