The number one question for buyers when purchasing new construction is do I need a Realtor?
Do you NEED a realtor when buying new construction? Short answer NO.
SHOULD you use a realtor when buying new construction? Short answer YES.
And here’s why…
Using a Realtor can save you thousands of dollars on your purchase. NOT just through negotiations but through a commission rebate. The simple and hidden fact in new construction deals is that builders offer agents a commission which they do not offer to unrepresented buyers. So, by going it alone you are leaving thousands of dollars on the table for no reason.
Many buyers believe that they can go to the builder and ask them to reduce the price of the home by the cost of the commission since they are not using a Realtor, and this is simply not the case. The truth is an agent commission is factored into the price at the builder’s level. And should a buyer choose not to use an agent, the builders simply gets to pocket this commission.
This is why builders won’t allow you to work with a Realtor if show up to the first meeting without one.
The reality is you have one of three choices when buying a new construction home:
- Go it alone – work directly with the builder’s agent and receive no representation and the builder pockets the commission.
- Work with an agent – work with an agent that will help you understand and review the terms of the contracts and will be paid the full commission from the builder.
- Work with EZ Agents – you will work directly with a local agent that will help you review and understand the terms of the contracts AND you will receive a commission rebate of 50% of the commission we are paid by the builder to cover your prepays and closing costs – saving you thousands on your purchase.
While it is true that in new construction deals, the builders and their agents handle the bulk of the work, there is simply no benefit to you as the buyer to go it alone.
A win/win for you.
As the market is shifting and interest rates are rising many buyers are flocking to new construction communities looking for a deal. Often times new construction builders will have preferred lenders that may offer fantastic incentives such as lower interest rates, rate buydowns and concessions towards closing costs or upgrades. Should you choose to work with a Realtor when buying new construction that also offers a buyer commission rebate you may be able to get the best of both worlds. A lower interest rate from the lender and your closing costs paid by your Realtor. A win/win for you as a buyer all at no cost to you.
If you are interested in learning more, simply call us or you can arrange for us to accompany you to meet with the builder. Should you choose after your meeting not to work with EZ Agents and go it alone with the builder – than you will have no obligation to us.