Should I Work With a Buyer’s Agent or a Builder?

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An unrepresented buyer is often disadvantaged in the real estate transaction process if they are not using an experienced real estate professional. It could be compared to going to represent yourself in a court case worth hundreds of thousands of dollars… and not bringing a lawyer to the table. Realtors are licensed and trained specifically to handle the many types of issues which can arise in the home buying process. 

All REALTORS® must adhere to a strict Code of Ethics, which is based on professionalism and protection of the public. The Code of Ethics and Standards of Practice are promises from a REALTOR® to the public that they can expect honest and ethical treatment in all transaction-related matters when dealing with a real estate agent who is also a REALTOR®. Only REALTORS® pledge to abide by the Code of Ethics, and only REALTORS® are held accountable for their ethical behavior.

Many home buyers simply drive up to a new subdivision and negotiate directly with a builder. Here are several reasons why you shouldn’t.

A buyer’s agent represents the buyer’s best interest and helps guide a buyer through every step of the transaction with the least degree of hassle and frustration. A buyer’s agent’s only goal is to get the buyer the most value for the least money. Their purpose isn’t to just drive you around to look at properties (though they do, of course!): their real value comes a little later in the process, during negotiating and working through the legal and safety issues.

Buyer Representation

Always remember one thing: the builder representative is a salesperson to the builder, and is there primarily to represent the builder’s interest in the transaction. They may look and sound like a real estate agent there to help you: but their loyalty is to the builder.

When a buyer deals directly with the builder’s representative and not a buyer’s agent (and therefore saving the builder the cost of a buyer’s agent), you are essentially paying the builder to not represent your interests. Real estate agents are licensed professionals bound by law and strict professional ethics and policies to work for the individual who signs with them.

In essence: would you rather have a builder to represent their own interests, or a buyer’s agent REALTOR® to represent yours?

Negotiation Assistance

Buyer negotiations without an agent are simply not effective. There are some incentives that are customary and typical with new construction homes. A Realtor will assist in financing, writing the offer, inspections, warranties, appraisals, titles, surveys, closing cost items and many others.

A buyer’s agent REALTOR® handles ALL of these concerns, asking the questions a buyer working alone with a builder might not know to ask, and ensures that their client gets the best items for the least cost.

New Construction Inspections

If you are working with a buyer’s agent, they will generally always insist on and manage inspections. Why?

Most new construction properties have a number of new home defects which can dramatically impact livability and resale value. Builder representatives are rarely likely to insist on or to manage proper third party inspections. Having a buyer’s agent on-hand to manage this part of the process alone can save new home buyers as much as the cost of an agent’s commission, and completely justifies a buyer’s agent involvement in the transaction.

Buyers are often under the mistaken assumption that a home warranty will take care of all these issues.

Buyer Agent Cost

The buyer’s agent commission is paid for by the builder automatically and the builder’s have already incorporated this fee in to the cost of the home. Why not take advantage of the free representation that is already paid for on their behalf.

New Listing - 8 hours online
$355,000
Single Family Home For Sale
Active
4
BEDS
3
TOTAL BATHS
2,431
SQFT
4125 Stark St
Murfreesboro, TN 37129
The Enclave At Liberty Vil Subdivision
New Listing - yesterday
$340,990
Single Family Home For Sale
Pending
4
BEDS
3
TOTAL BATHS
2,540
SQFT
2117 Oak Drive
Murfreesboro, TN 37128
Evergreen Farms Subdivision
New Listing - yesterday
$444,360
Single Family Home For Sale
Pending
5
BEDS
4
TOTAL BATHS
3,365
SQFT
419 Buxton Court (Lot 394)
Murfreesboro, TN 37128
Davenport Station Subdivision
New Listing - yesterday
$457,680
Single Family Home For Sale
Pending
4
BEDS
4
TOTAL BATHS
3,066
SQFT
502 Buxton Ct (Lot 387)
Murfreesboro, TN 37128
Davenport Station Subdivision
New Listing - yesterday
$512,738
Single Family Home For Sale
Pending
5
BEDS
5
TOTAL BATHS
3,826
SQFT
3906 Bomeadows Drive (Lot 378)
Murfreesboro, TN 37128
Davenport Station Subdivision
New Listing - yesterday
$440,670
Single Family Home For Sale
Pending
5
BEDS
4
TOTAL BATHS
3,365
SQFT
4003 Bomeadows Drive (Lot 373)
Murfreesboro, TN 37128
Davenport Station Subdivision
New Listing - yesterday
$300,000
Single Family Home For Sale
Active
3
BEDS
2
TOTAL BATHS
1,618
SQFT
262 William Dylan Drive
Murfreesboro, TN 37129
Griffith Park Subdivision
New Listing - 2 days online
$331,990
Single Family Home For Sale
Pending
4
BEDS
3
TOTAL BATHS
2,540
SQFT
2213 Oak Drive
Murfreesboro, TN 37128
Evergreen Farms Subdivision
New Listing - 3 days online
$330,990
Single Family Home For Sale
Pending
4
BEDS
4
TOTAL BATHS
2,207
SQFT
2115 Secretariat Trace
Murfreesboro, TN 37128
Evergreen Farms Subdivision
New Listing - 3 days online
$424,900
Single Family Home For Sale
Pending
4
BEDS
3
TOTAL BATHS
2,987
SQFT
501 Davenport Dr
Murfreesboro, TN 37128
Davenport Station Sec 1 Subdivision
New Listing - 3 days online
$765,982
Single Family Home For Sale
Pending
5
BEDS
5
TOTAL BATHS
3,662
SQFT
209 Seclusion Ct.- Lot 23
Murfreesboro, TN 37129
Harvest Woods (Estates) Subdivision
New Listing - 4 days online
$405,000
Single Family Home For Sale
Active
3
BEDS
3
TOTAL BATHS
2,305
SQFT
3517 Darrell Dr
Murfreesboro, TN 37128
Magnolia Grove Subdivision
New Listing - 4 days online
$433,952
Single Family Home For Sale
Pending
4
BEDS
4
TOTAL BATHS
2,783
SQFT
319 Beulah Rose Dr #163
Murfreesboro, TN 37128
Nature Walk Subdivision
New Listing - 4 days online
$386,141
Single Family Home For Sale
Pending
3
BEDS
2
TOTAL BATHS
2,100
SQFT
213 Beulah Rose Dr #121
Murfreesboro, TN 37128
Nature Walk Sec 2 Subdivision
New Listing - 4 days online
$364,900
Single Family Home For Sale
Active
3
BEDS
3
TOTAL BATHS
2,083
SQFT
1266 Cotillion Dr
Murfreesboro, TN 37128
South Haven Sec 5 Subdivision
New Listing - 5 days online
$354,900
Single Family Home For Sale
Active
3
BEDS
3
TOTAL BATHS
1,803
SQFT
2164 Welltown Ln
Murfreesboro, TN 37128
Waites Creek Crossing Subdivision
New Listing - 5 days online
$363,542
Townhouse For Sale
Active
3
BEDS
3
TOTAL BATHS
2,441
SQFT
2108 Halfmoon Way (Lot 51)
Murfreesboro, TN 37130
Brookwood Point Subdivision
New Listing - 5 days online
$457,815
Single Family Home For Sale
Pending
4
BEDS
3
TOTAL BATHS
2,883
SQFT
803 Corlew St ( To Be Built)
Murfreesboro, TN 37130
Osborne Estates Subdivision
New Listing - 6 days online
$375,000
Single Family Home For Sale
Pending
3
BEDS
3
TOTAL BATHS
2,382
SQFT
5113 General Yeager Dr
Murfreesboro, TN 37129
Liberty Valley Sec 7 Subdivision
New Listing - 6 days online
$344,900
Single Family Home For Sale
Pending
3
BEDS
3
TOTAL BATHS
1,735
SQFT
2160 Welltown Ln
Murfreesboro, TN 37128
Waites Creek Crossing Subdivision

Should I Work With a Buyer’s Agent or a Builder?

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