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 - 10 hours online
$253,225
Townhouse For Sale
Active
3
BED
3
TOTAL BATHS
1,612
SQFT
1626 Calcutta Drive Lot 40 #40
Murfreesboro, TN 37128
Wilkerson Downs Townhomes Subdivision
New Listing - 13 hours online
$379,000
Single Family Home For Sale
Active
5
BED
4
TOTAL BATHS
2,799
SQFT
1228 Black Oak Drive #245
Murfreesboro, TN 37128
Westlawn Subdivision
New Listing - 13 hours online
$389,900
Single Family Home For Sale
Active
5
BED
3
TOTAL BATHS
2,482
SQFT
7906 Dan Cherry Ct
Murfreesboro, TN 37128
NATURE WALK Subdivision
New Listing - 13 hours online
$399,900
Single Family Home For Sale
Active
4
BED
4
TOTAL BATHS
3,227
SQFT
409 Davenport Dr Lot 15
Murfreesboro, TN 37128
Davenport Station Sec 1 Subdivision
New Listing - 15 hours online
$374,990
Single Family Home For Sale
Active
4
BED
3
TOTAL BATHS
2,707
SQFT
3622 Swanvale Lane (Lot 131)
Murfreesboro, TN 37129
Spring Creek Subdivision
New Listing - 15 hours online
$349,990
Single Family Home For Sale
Active
3
BED
3
TOTAL BATHS
2,496
SQFT
3624 Waterlilly Way
Murfreesboro, TN 37129
Spring Creek Subdivision
New Listing - 18 hours online
$359,990
Single Family Home For Sale
Active
4
BED
3
TOTAL BATHS
2,707
SQFT
Pomoa Place (To Be Built)
Murfreesboro, TN 37130
Osborne Estates Subdivision
New Listing - 19 hours online
$339,990
Single Family Home For Sale
Active
3
BED
2
TOTAL BATHS
2,154
SQFT
2919 Pomoa Place ( To Be Built)
Murfreesboro, TN 37130
Osborne Estates Subdivision
New Listing - 19 hours online
$364,990
Single Family Home For Sale
Active
3
BED
2
TOTAL BATHS
2,154
SQFT
2912 Pomoa Place
Murfreesboro, TN 37130
Osborne Estates Subdivision
New Listing - 19 hours online
$464,990
Single Family Home For Sale
Active
5
BED
4
TOTAL BATHS
3,307
SQFT
2911 Pomoa Place
Murfreesboro, TN 37130
Osborne Estates Subdivision
New Listing - 19 hours online
$400,000
Single Family Home For Sale
Active
4
BED
3
TOTAL BATHS
2,707
SQFT
2916 Pomoa Place
Murfreesboro, TN 37130
Osborne Estates Subdivision
New Listing - 21 hours online
$474,900
Single Family Home For Sale
Active
4
BED
3
TOTAL BATHS
3,160
SQFT
7758 Santos Dr
Murfreesboro, TN 37129
Madison Cove Sec 1 Subdivision
New Listing - yesterday
$449,777
Single Family Home For Sale
Active
4
BED
4
TOTAL BATHS
2,859
SQFT
2040 Trout Trl
Murfreesboro, TN 37129
Anglers Retreat Sec 2 Subdivision
New Listing - yesterday
$399,777
Single Family Home For Sale
Active
4
BED
3
TOTAL BATHS
2,416
SQFT
58 Bluegill Ct
Murfreesboro, TN 37128
Angler's Retreat Subdivision
New Listing - yesterday
$434,990
Single Family Home For Sale
Pending
5
BED
4
TOTAL BATHS
3,528
SQFT
1620 Gingerwood Drive 80 Alp
Murfreesboro, TN 37129
Blackman Meadows Subdivision
New Listing - yesterday
$239,990
Townhouse For Sale
Active
3
BED
3
TOTAL BATHS
1,487
SQFT
3411 Brookberry Lane (Lot 61) #61
Murfreesboro, TN 37129
Spring Creek Subdivision
New Listing - yesterday
$239,990
Townhouse For Sale
Active
3
BED
3
TOTAL BATHS
1,487
SQFT
3337 Brookberry Lane (Lot 41) #41
Murfreesboro, TN 37129
Spring Creek Subdivision
New Listing - yesterday
$242,990
Townhouse For Sale
Active
3
BED
3
TOTAL BATHS
1,387
SQFT
3338 Brookberry Lane (Lot 46) #46
Murfreesboro, TN 37129
Spring Creek Subdivision
New Listing - yesterday
$679,900
Single Family Home For Sale
Active
4
BED
4
TOTAL BATHS
3,622
SQFT
5709 Bridgemore Blvd
Murfreesboro, TN 37128
Shelton Square Subdivision
New Listing - yesterday
$250,990
Single Family Home For Sale
Active
3
BED
3
TOTAL BATHS
1,846
SQFT
4227 Aragorn Way #46
Murfreesboro, TN 37129
Blackman Station Subdivision

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

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