Do You Need Your Own Agent to Buy New Construction?

New construction communities are great and attractive. So does a buyer need their own agent when dealing with a builder? The short answer is no. But here is what we often like to share with buyers before they decide, and what I have seen go right and wrong.

You do not need one, but know what representation is for

A buyer does not need their own agent when dealing with a builder. You can walk into a model home, talk with the sales rep and buy a house.

What we often like to share is what representation is designed for. It is designed for you to have somebody who will go work on behalf of your best interests. That is the whole point of it, and it is worth understanding before you decide to go without it.

Who the sales rep works for

The sales rep in a new construction community works for the builder. The majority of the time, that rep is going to work in the best interest of the builder, because they are paid by them and incentivized by them.

They may be friendly, knowledgeable and mean well. But there is a natural conflict of interest that exists. The person explaining the price, the contract and the timeline to you is on the other side of the sale.

That is not a knock on sales reps. It is just how the job is set up. In most cases the contract you sign is also the builder's own contract, written by the builder.

What I have seen go wrong

I have seen situations where people go to buy new construction and are told one set of numbers, or given certain promises, that they never got in writing. Then those promises are not honored, because it becomes a he said, she said situation.

A promise could be about the price, an incentive, an upgrade or a date. If it is not written into the contract or added to it in writing, it is very hard to hold anyone to it later.

I have also seen entire inspections get missed, because the open window period for that to happen was not communicated well by the sales rep or the builder.

People are sometimes surprised that a brand new home gets inspected at all. It can be, and an inspector you hire works for you. But on new construction the builder controls access to the home and the schedule, so there are set windows for it. If nobody tells you when the window is, it can close before you knew it was open. For more on why inspections matter, read How Home Inspections Protect Buyers (And Save You Thousands).

What I have seen go right

On the contrary, I have seen clients move forward with getting representation and be able to slow down. Every part of the new construction process was explained to them, so they could feel and understand the pace at which things would move.

That pace is different from buying a home that is already built. There is a contract, then choices to make about the home, then stages of construction, then a walkthrough and a closing. The builder sets most of that schedule. Having someone on your side who can tell you what is coming next, and what you need to do before it gets here, changes how the whole thing feels.

Who pays your agent

Sometimes the brokerage's professional fee is covered entirely by the builder. However, that should always be a conversation with your licensed professional, so you understand whether what the builder is offering is adequate for what they are looking to charge you.

As I said in What Happens After You Fill Out the FABA Form, agents will discuss with you directly what it looks like to have representation and who covers the cost. There are plenty of rules and laws governing commissions, and they differ by state.

One more thing on timing. Builders have their own policies on working with a buyer's agent, and some want the agent involved from your first visit. So have that conversation with your agent before you tour the community, not after.

If you are getting ready to interview an agent, Questions to Ask a Real Estate Agent on the First Call will help, and you can add one more question: what is your experience with new construction? And if you want to be introduced to a Black real estate agent in your market, start at findablackagent.com.