January 24, 2022

Steve Novak

Do I need an agent when buying new construction?

The number one question for buyers when purchasing new construction is do I need an agent?


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 an agent can save you thousands of dollars on your purchase. NOT 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 an agent, 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 an agent if show up to the first meeting without one.

The hard truth.

In this market where demand is at an all-time high, the builders hold all the cards.  There is little if any wiggle room on price (in fact the price may actually go up prior to you signing contracts due to rising lumber and steel prices).  And if you are not comfortable with the terms of their contract they will simply move on to the next buyer in line.  This is why it is important to have an agent that makes sure you understand all the terms of the contracts you are signing.

The reality is you have one of three choices when buying a new construction home:

  1. Go it alone – work directly with the builder’s agent and receive no representation and the builder pockets the commission.
  2. 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.
  3. 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.

If you are interested in learning more, simply call us or you can arrange for one of our local agents 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.