Buyers, Working Directly with the Builder Could be a Big Mistake

Mistake? It’s a mistake going to the builder myself? Why shouldn’t I talk directly with the person building my home? I mean it’s my investment, my money and I want to make sure there aren’t any issues with communication. If I talk directly with the builder and omit the agents, I can ensure that the builder knows exactly what I want and what I expect to pay.

Most people often ask themselves those questions when someone tells them that going to the builder is a mistake. They don’t understand why it is such a mistake. So, from an agent that has experience in both resale and new home sales, I will explain exactly why you should use a buyer’s agent when purchasing new construction.

Let’s say you received a friendly reminder that going above the speed limit isn’t such a great idea and against the law, yeah we’ve all gotten those reminders. So it’s time to handle the reminder, but you feel confident that no one will plead your case and communicate that you are not guilty, quite like yourself. Do you hire a professional with experience to represent you? Or do you represent yourself?

Most of us would prefer to hire an attorney to represent us because we are confident that the matter will be resolved easier and faster. Or, say you need surgery. Do you ask your friend to handle the surgery because you trust them or do you go see a qualified surgeon to resolve the matter? The same logic should be used when buying or building a home. Why would you not want a professional representing your best interests?

When you decide to purchase a new construction home, you will normally work with the builder’s agent or “onsite agent.” These agents know the builders and their craftsmanship like no one else. As they should. They represent the builder in the transaction. Having your own representation isn’t just convenient, it’s smart. Really smart. Without your own agent negotiating terms and providing you with industry input and guiding you through the process; you have no idea that your interests are truly being looked after. Now I’m not trying to say that the agents working for the builder don’t care about your interests, believe me they do. But when it comes to who represents who – they represent the builder.

Often when buyers decide to go to the builder directly and try to communicate, the builder will encourage the buyer talk with the builder’s agent instead. The builder has a lot to manage in the construction of such a large investment and allowing him/her to focus on the building and less on the terms of the contract, ensures that your needs are met. That is why it is so important to allow the builder to do his/her job – build your house. Price negotiations, contract terms and communicating your wants & needs to the builder should always be handled by the real estate agents in the transaction, as that is their job. Remember, they’re the professionals. That’s why you hire them.

One more thing, if you think that eliminating a buyer’s agent will gain you a credit for real estate services on the purchase…think again. Most builders will actually not issue the credit to the buyer’s personally, but will give the buyer’s agent side commission to the builder’s agent because they will be doing double the work in the transaction. Don’t try to cut corners, let a professional represent your best interests and be an advocate for you. Save yourself the hassle and put a professional in your corner. After all, you shouldn’t have to wonder who is in your corner and who isn’t, right?

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