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 - 5 hours online
$261,775
Land For Sale
Active
4
BED
3
TOTAL BATHS
1,739
SQFT
4409 Chusto Drive
Murfreesboro, TN 37129
Braxton Parke Subdivision
New Listing - 6 hours online
$314,740
Single Family Home For Sale
Active
3
BED
3
TOTAL BATHS
2,282
SQFT
4309 Fieldcrest Drive (Lot 146)
Murfreesboro, TN 37128
Davenport Station Sec 3 Ph Subdivision
New Listing - 8 hours online
$211,990
Townhouse For Sale
Active
2
BED
3
TOTAL BATHS
1,255
SQFT
3415 Donerail Circle #379
Murfreesboro, TN 37128
Villas at Evergreen Farms Subdivision
New Listing - 8 hours online
$217,990
Townhouse For Sale
Active
3
BED
3
TOTAL BATHS
1,356
SQFT
3421 Doneerail Circle #382
Murfreesboro, TN 37128
Villas at Evergreen Farms Subdivision
New Listing - 8 hours online
$217,990
Townhouse For Sale
Active
3
BED
3
TOTAL BATHS
1,356
SQFT
3413 Doneerail Circle #378
Murfreesboro, TN 37128
Villas at Evergreen Farms Subdivision
New Listing - yesterday
$400,990
Single Family Home For Sale
Active
4
BED
3
TOTAL BATHS
2,454
SQFT
1412 Dawbarn Dr
Murfreesboro, TN 37128
Forest Ridge Sec 3 Ph 3 Subdivision
New Listing - 2 days online
$387,990
Single Family Home For Sale
Active
3
BED
2
TOTAL BATHS
2,380
SQFT
2631 Goose Creek Ln
Murfreesboro, TN 37128
Three Rivers Subdivision
New Listing - 2 days online
$370,990
Single Family Home For Sale
Active
3
BED
2
TOTAL BATHS
2,380
SQFT
2611 Goose Creek Ln
Murfreesboro, TN 37128
Three Rivers Subdivision
New Listing - 2 days online
$429,990
Single Family Home For Sale
Active
4
BED
3
TOTAL BATHS
3,306
SQFT
2635 Goose Creek Ln
Murfreesboro, TN 37128
Three Rivers Subdivision
New Listing - 2 days online
$402,990
Single Family Home For Sale
Active
4
BED
3
TOTAL BATHS
3,306
SQFT
2615 Goose Creek Ln
Murfreesboro, TN 37128
Three Rivers Subdivision
New Listing - 2 days online
$245,990
Townhouse For Sale
Active
3
BED
3
TOTAL BATHS
1,403
SQFT
1719 Frodo Way (87 S)
Murfreesboro, TN 37128
Blackman Station Subdivision
New Listing - 2 days online
$235,990
Townhouse For Sale
Active
3
BED
3
TOTAL BATHS
1,224
SQFT
1722 Frodo Way (86 A)
Murfreesboro, TN 37128
Blackman Station Subdivision
New Listing - 2 days online
$235,990
Townhouse For Sale
Active
3
BED
3
TOTAL BATHS
1,224
SQFT
1718 Frodo Way (147 A) #147
Murfreesboro, TN 37128
Blackman Station Subdivision
New Listing - 2 days online
$235,990
Townhouse For Sale
Active
3
BED
3
TOTAL BATHS
1,224
SQFT
1722 Frodo Way (145 A)
Murfreesboro, TN 37128
Blackman Station Subdivision
New Listing - 2 days online
$235,990
Townhouse For Sale
Active
3
BED
3
TOTAL BATHS
1,224
SQFT
1721 Frodo Way (88a)
Murfreesboro, TN 37128
Blackman Station Subdivision
New Listing - 3 days online
$945,000
Single Family Home For Sale
Active
4
BED
6
TOTAL BATHS
3,494
SQFT
425 Puckett Rd
Murfreesboro, TN 37128
Puckett Rd Subdivision
Open House Sat, Jan 23, 11 AM UTC
$269,000
Townhouse For Sale
Active
2
BED
3
TOTAL BATHS
1,649
SQFT
3228 Brookberry Ln
Murfreesboro, TN 37129
Spring Creek Townhomes Ph Subdivision
New Listing - 3 days online
$324,984
Single Family Home For Sale
Active
3
BED
3
TOTAL BATHS
2,131
SQFT
2506 Hollis Dr. (Lot 73)
Murfreesboro, TN 37127
Mankin Pointe Subdivision
New Listing - 3 days online
$334,804
Single Family Home For Sale
Active
4
BED
5
TOTAL BATHS
2,207
SQFT
2415 Hollis Drive (Lot 45)
Murfreesboro, TN 37127
Mankin Pointe Subdivision

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

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