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 - 15 hours online
$299,900
Condo For Sale
Active
3
BED
3
TOTAL BATHS
2,718
SQFT
3427 Magruder Drive (J2)
Murfreesboro, TN 37129
GENERALS LANDING Subdivision
New Listing - 15 hours online
$341,590
Single Family Home For Sale
Active
4
BED
3
TOTAL BATHS
2,476
SQFT
3106 Rift Lane
Murfreesboro, TN 37130
Valleybrook Sec 2 Subdivision
New Listing - 16 hours online
$385,000
Single Family Home For Sale
Pending
4
BED
3
TOTAL BATHS
2,650
SQFT
5123 Cedar Retreat Dr - Lot 50
Murfreesboro, TN 37129
CEDAR RETREAT SECTION 2 Subdivision
New Listing - 18 hours online
$343,590
Single Family Home For Sale
Active
4
BED
3
TOTAL BATHS
2,575
SQFT
3042 Rift Lane
Murfreesboro, TN 37130
Valleybrook Sec 2 Subdivision
New Listing - 21 hours online
$249,900
Townhouse For Sale
Pending
3
BED
3
TOTAL BATHS
1,719
SQFT
4111 Suntropic Ln Lot 21 #21
Murfreesboro, TN 37127
The Villas at Del Sol Subdivision
New Listing - yesterday
$379,000
Single Family Home For Sale
Pending
3
BED
3
TOTAL BATHS
2,828
SQFT
3551 Caroline Farms Drive L36
Murfreesboro, TN 37129
Caroline Farms Section 1 Subdivision
New Listing - yesterday
$379,260
Single Family Home For Sale
Pending
4
BED
3
TOTAL BATHS
2,707
SQFT
3611 Lantern Ln - Lot 182
Murfreesboro, TN 37128
Sheffield Park Subdivision
New Listing - yesterday
$267,990
Single Family Home For Sale
Active
3
BED
3
TOTAL BATHS
1,561
SQFT
2944 Leatherwood Drive, L332
Murfreesboro, TN 37128
Three Rivers Subdivision
New Listing - yesterday
$230,990
Single Family Home For Sale
Pending
2
BED
3
TOTAL BATHS
1,487
SQFT
2024 Alysheba Run
Murfreesboro, TN 37128
Villas At Evergreen Fa Subdivision
New Listing - yesterday
$382,000
Single Family Home For Sale
Pending
4
BED
3
TOTAL BATHS
2,828
SQFT
3444 Caroline Farms Drive
Murfreesboro, TN 37129
Caroline Farms Sec 1 Subdivision
New Listing - yesterday
$429,900
Single Family Home For Sale
Active
4
BED
3
TOTAL BATHS
2,783
SQFT
5638 Shelton Boulevard #60
Murfreesboro, TN 37128
SHELTON SQUARE Subdivision
New Listing - yesterday
$369,990
Single Family Home For Sale
Pending
5
BED
4
TOTAL BATHS
3,021
SQFT
5606 Pointer Place Lot 272
Murfreesboro, TN 37129
Shelton Square Subdivision
New Listing - yesterday
$254,990
Single Family Home For Sale
Active
3
BED
3
TOTAL BATHS
1,729
SQFT
4205 Aragorn Way #37
Murfreesboro, TN 37128
Blackman Station Lot 1 Tow Subdivision
New Listing - yesterday
$604,766
Single Family Home For Sale
Pending
5
BED
5
TOTAL BATHS
3,495
SQFT
106 Seclusion Ct.- 11
Murfreesboro, TN 37129
Harvest Woods (Estates) Subdivision
New Listing - 3 days online
$257,055
Townhouse For Sale
Pending
3
BED
3
TOTAL BATHS
1,487
SQFT
3409 Brookberry Lane (Lot 60)
Murfreesboro, TN 37129
Spring Creek Subdivision
New Listing - 3 days online
$245,060
Townhouse For Sale
Pending
3
BED
3
TOTAL BATHS
1,387
SQFT
3415 Brookberry Lane (Lot 63) #63
Murfreesboro, TN 37129
Spring Creek Subdivision
New Listing - 3 days online
$363,735
Single Family Home For Sale
Active Under Contract
4
BED
4
TOTAL BATHS
2,707
SQFT
3612 Waterlilly Way (108)
Murfreesboro, TN 37129
Spring Creek Subdivision
New Listing - 4 days online
$405,990
Single Family Home For Sale
Active
4
BED
4
TOTAL BATHS
2,952
SQFT
4945 Tritschler Lane
Murfreesboro, TN 37128
Brighton Park at Kingdom Subdivision
New Listing - 4 days online
$379,990
Single Family Home For Sale
Active
4
BED
3
TOTAL BATHS
2,209
SQFT
4334 Peacemill Ln
Murfreesboro, TN 37128
The Reserve At Marymont Sp Subdivision
New Listing - 4 days online
$299,185
Land For Sale
Active
3
BED
3
TOTAL BATHS
2,107
SQFT
827 Arbon Vale Dr
Murfreesboro, TN 37130
Cottages At Valleybrook Ph Subdivision

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

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