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

with No Comments

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 - 4 hours online
$699,900
Single Family Home For Sale
Active
5
BED
4
TOTAL BATHS
4,000
SQFT
2953 Siegel Road
Murfreesboro, TN 37129
Siegel Cove Subdivision
New Listing - 4 hours online
$392,933
Single Family Home For Sale
Pending
2
BED
3
TOTAL BATHS
2,404
SQFT
1115 Owen Layne Drive#209
Murfreesboro, TN 37129
Stewart Creek Farms Subdivision
New Listing - 5 hours online
$545,000
Single Family Home For Sale
Active
5
BED
4
TOTAL BATHS
3,868
SQFT
2818 Bertram Ct
Murfreesboro, TN 37129
Wynthrope Hall Subdivision
New Listing - 6 hours online
$403,500
Single Family Home For Sale
Active
3
BED
2
TOTAL BATHS
2,364
SQFT
1121 Webbs Retreat Lane #143
Murfreesboro, TN 37128
Westlawn Subdivision
New Listing - 7 hours online
$379,900
Single Family Home For Sale
Active
4
BED
4
TOTAL BATHS
2,582
SQFT
1231 Cotillion Drive #528
Murfreesboro, TN 37128
South Haven Subdivision
New Listing - 8 hours online
$265,900
Single Family Home For Sale
Active
3
BED
3
TOTAL BATHS
1,520
SQFT
3424 Vedette Lane
Murfreesboro, TN 37128
Westwind Subdivision
New Listing - 9 hours online
$420,777
Single Family Home For Sale
Active
4
BED
3
TOTAL BATHS
2,751
SQFT
2043 Trout Trail
Murfreesboro, TN 37129
Angler's Retreat Subdivision
New Listing - 9 hours online
$197,990
Townhouse For Sale
Active
3
BED
3
TOTAL BATHS
1,257
SQFT
4210 Gandalf Lane #33
Murfreesboro, TN 37128
Blackman Station Subdivision
New Listing - 9 hours online
$331,120
Single Family Home For Sale
Active
4
BED
3
TOTAL BATHS
2,186
SQFT
1731 Lanister Avenue #5
Murfreesboro, TN 37129
Blackman Station Subdivision
New Listing - 9 hours online
$294,990
Single Family Home For Sale
Active
4
BED
3
TOTAL BATHS
1,887
SQFT
1732 Lannister Avenue #28
Murfreesboro, TN 37129
Blackman Station Subdivision
New Listing - 10 hours online
$318,990
Single Family Home For Sale
Active
4
BED
3
TOTAL BATHS
2,483
SQFT
1736 Lannister Avenue #29
Murfreesboro, TN 37129
Blackman Station Subdivision
New Listing - 10 hours online
$292,990
Single Family Home For Sale
Active
4
BED
3
TOTAL BATHS
1,887
SQFT
1740 Lannister Avenue #30
Murfreesboro, TN 37128
Blackman Station Subdivision
New Listing - 10 hours online
$314,590
Single Family Home For Sale
Active
3
BED
2
TOTAL BATHS
1,800
SQFT
3104 Kemp Way
Murfreesboro, TN 37130
Valleybrook Subdivision
New Listing - 10 hours online
$293,590
Single Family Home For Sale
Active
4
BED
3
TOTAL BATHS
1,887
SQFT
3155 Kemp Way
Murfreesboro, TN 37130
Valleybrook Subdivision
New Listing - 10 hours online
$324,640
Single Family Home For Sale
Active
4
BED
3
TOTAL BATHS
2,483
SQFT
3111 Kemp Way
Murfreesboro, TN 37130
Valleybrook Subdivision
New Listing - 10 hours online
$323,640
Single Family Home For Sale
Active
4
BED
3
TOTAL BATHS
2,476
SQFT
810 Lexi Lane Lot 89
Murfreesboro, TN 37130
Valleybrook Subdivision
New Listing - 10 hours online
$294,640
Single Family Home For Sale
Active
4
BED
3
TOTAL BATHS
1,887
SQFT
3107 Kemp Way
Murfreesboro, TN 37130
Valleybrook Subdivision
New Listing - 21 hours online
$479,900
Single Family Home For Sale
Active
4
BED
3
TOTAL BATHS
3,200
SQFT
7037 Harriswood Ln
Murfreesboro, TN 37129
Stewart Creek Farms Prd Se Subdivision
New Listing - 21 hours online
$399,900
Single Family Home For Sale
Active
4
BED
4
TOTAL BATHS
2,819
SQFT
326 Edna May Dr
Murfreesboro, TN 37128
Hampton Park At Hillwood S Subdivision
Open House 01/18 at 10AM
$404,900
Single Family Home For Sale
Active
5
BED
4
TOTAL BATHS
3,151
SQFT
359 Beulah Rose Dr #173
Murfreesboro, TN 37128
NATURE WALK Subdivision

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

Leave a Reply