Many buyers believe they will get a better deal if they negotiate directly with the builder themselves. After all, the salesperson at the model home knows the product and can help them through the financing process so where is the benefit of using a real estate agent for this transaction?
The answer is simple – your realtor is there to protect your interests. The responsibility of the Realtor is to make sure you are aware of all your options when purchasing a home – including where the best deals can be found. There is no one better equipped to explain the features and benefits of the new home than the builder representative – after all, it is a product that they are most familiar with. But what if the builder down the street is offering better incentives to you as the buyer? Maybe they will help with closing costs or offer better upgrade packages. Your realtor can use this knowledge to help you negotiate a better price.
It costs you nothing to use your Realtor’ s expertise to gain the perfect home for you. Using a realtor does not cost the builder representative any portion of their commission, so why wouldn’t you take advantage of the expertise of both professionals?
With this in mind I offer this bit of caution: Beware of agents who are offering a ‘rebate’ of their commission in exchange for your using their services to buy new construction – it suggests either inexperience or deception. Most (if not all) builders have an addendum preventing the Realtor must sign to prevent this from occurring, so you will likely never actually see that 2% rebate. Many loan products also have a limit on how much assistance you can receive and this additional 2% puts you over that limit. All rebates and credits MUST appear on the closing disclosure, otherwise, you run the risk of legal issues with your mortgage company.
Please remember: this may be your first, second, or fifth time purchasing new construction. With careful selection, you can have an agent on your side who has done this 20,30 or 40+ putting their experience with new builds to work for you!