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
$173,610
Townhouse For Sale
Active
2
BED
3
TOTAL BATHS
1,170
SQFT
1048 Tradition Trial (Lot 26) #26
Murfreesboro, TN 37130
Heritage Place Subdivision
New Listing - 13 hours online
$399,900
Single Family Home For Sale
Active
4
BED
3
TOTAL BATHS
2,495
SQFT
4611 Maryweather, Lot 21
Murfreesboro, TN 37128
Reserve at Marymont Spring Subdivision
New Listing - 13 hours online
$459,900
Single Family Home For Sale
Active
5
BED
4
TOTAL BATHS
3,386
SQFT
4602 Maryweather Ln, Lot 6
Murfreesboro, TN 37128
Marymont Springs Subdivision
New Listing - 2 days online
$334,695
Single Family Home For Sale
Active
3
BED
2
TOTAL BATHS
2,083
SQFT
2527 Parkwood Drive (39)
Murfreesboro, TN 37128
Rivers Edge Subdivision
New Listing - 2 days online
$372,900
Single Family Home For Sale
Active
4
BED
3
TOTAL BATHS
2,817
SQFT
2307 Bullrush Lane (Lot 77)
Murfreesboro, TN 37128
Rivers Edge Subdivision
New Listing - 2 days online
$409,900
Single Family Home For Sale
Active
4
BED
3
TOTAL BATHS
3,158
SQFT
2315 Bullrush Lane (Lot 79)
Murfreesboro, TN 37128
Rivers Edge Subdivision
New Listing - 2 days online
$372,085
Single Family Home For Sale
Active
4
BED
3
TOTAL BATHS
2,817
SQFT
2311 Bullrush Lane (Lot 78)
Murfreesboro, TN 37128
Rivers Edge Subdivision
New Listing - 2 days online
$409,800
Single Family Home For Sale
Active
4
BED
3
TOTAL BATHS
3,158
SQFT
2323 Bullrush Lane (Lot 81)
Murfreesboro, TN 37128
Rivers Edge Subdivision
New Listing - 2 days online
$373,000
Single Family Home For Sale
Active
3
BED
2
TOTAL BATHS
2,483
SQFT
2314 Bullrush Lane (Lot 71)
Murfreesboro, TN 37128
Rivers Edge Subdivision
New Listing - 2 days online
$385,900
Single Family Home For Sale
Active
4
BED
3
TOTAL BATHS
2,817
SQFT
2318 Bullrush Lane (Lot 70)
Murfreesboro, TN 37128
Rivers Edge Subdivision
New Listing - 2 days online
$352,430
Single Family Home For Sale
Active
3
BED
2
TOTAL BATHS
2,083
SQFT
2523 Kingfisher Drive (Lot 59)
Murfreesboro, TN 37128
Rivers Edge Subdivision
New Listing - 2 days online
$378,450
Single Family Home For Sale
Active
4
BED
3
TOTAL BATHS
2,817
SQFT
2524 Kingfisher Drive (Lot 48)
Murfreesboro, TN 37128
Rivers Edge Subdivision
New Listing - 2 days online
$349,900
Single Family Home For Sale
Active
3
BED
2
TOTAL BATHS
2,444
SQFT
2322 Bullrush Lane (Lot 69)
Murfreesboro, TN 37128
Rivers Edge Subdivision
New Listing - 2 days online
$349,900
Single Family Home For Sale
Active
3
BED
2
TOTAL BATHS
2,444
SQFT
2408 Bullrush Lane (Lot 67)
Murfreesboro, TN 37128
Rivers Edge Subdivision
New Listing - 2 days online
$349,900
Single Family Home For Sale
Active
4
BED
3
TOTAL BATHS
2,546
SQFT
2409 Bullrush Lane (Lot 83)
Murfreesboro, TN 37128
Rivers Edge Subdivision
New Listing - 2 days online
$420,000
Single Family Home For Sale
Active
4
BED
3
TOTAL BATHS
3,158
SQFT
2531 Kingfisher Drive(Lot 61)
Murfreesboro, TN 37128
Rivers Edge Subdivision
New Listing - 2 days online
$349,900
Single Family Home For Sale
Active
3
BED
2
TOTAL BATHS
2,444
SQFT
2417 Bullrush Lane (Lot 85)
Murfreesboro, TN 37128
Rivers Edge Subdivision
New Listing - 2 days online
$401,940
Single Family Home For Sale
Active
4
BED
4
TOTAL BATHS
2,772
SQFT
814 Licinius Ln
Murfreesboro, TN 37128
Stovers Glen Sec 2 Subdivision
New Listing - 2 days online
$223,490
Townhouse For Sale
Active
3
BED
3
TOTAL BATHS
1,387
SQFT
Brookberry Lane (Lot 55)
Murfreesboro, TN 37129
Spring Creek Subdivision
New Listing - 2 days online
$226,990
Townhouse For Sale
Active
3
BED
3
TOTAL BATHS
1,487
SQFT
Brookberry Lane (Lot 54)
Murfreesboro, TN 37129
Spring Creek Subdivision

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

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