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 - 23 hours online
$279,900
Townhouse For Sale
Active
3
BED
3
TOTAL BATHS
1,907
SQFT
3346 Alta Lane
Murfreesboro, TN 37128
Oak Haven Subdivision
New Listing - yesterday
$528,827
Single Family Home For Sale
Active
5
BED
4
TOTAL BATHS
3,151
SQFT
5616 Willoughby Way #182
Murfreesboro, TN 37129
STEWART CREEK FARMS Subdivision
New Listing - yesterday
$522,471
Single Family Home For Sale
Active
5
BED
4
TOTAL BATHS
3,151
SQFT
191 Owen Layne #191
Murfreesboro, TN 37129
STEWART CREEK FARMS Subdivision
New Listing - yesterday
$379,900
Single Family Home For Sale
Active
4
BED
3
TOTAL BATHS
2,565
SQFT
2518 Sandstone Circle
Murfreesboro, TN 37130
Pebblecreek Subdivision
New Listing - yesterday
$319,900
Single Family Home For Sale
Active
4
BED
3
TOTAL BATHS
2,114
SQFT
2854 Leatherwood Dr
Murfreesboro, TN 37128
Three Rivers Sec 9 Subdivision
New Listing - 2 days online
$247,990
Townhouse For Sale
Active
3
BED
3
TOTAL BATHS
1,487
SQFT
1487 Deerchase Circle
Murfreesboro, TN 37129
Spring Creek Subdivision
New Listing - 3 days online
$239,990
Townhouse For Sale
Active
3
BED
3
TOTAL BATHS
1,387
SQFT
1387 Deerchase Circle
Murfreesboro, TN 37129
Spring Creek Subdivision
New Listing - 3 days online
$234,990
Townhouse For Sale
Active
3
BED
3
TOTAL BATHS
1,403
SQFT
1621 Tolkien Lane #77
Murfreesboro, TN 37128
Blackman Station Subdivision
New Listing - 3 days online
$386,990
Single Family Home For Sale
Active
4
BED
4
TOTAL BATHS
2,327
SQFT
3122 Pomoa Place
Murfreesboro, TN 37130
Valleybrook Subdivision
New Listing - 4 days online
$269,499
Single Family Home For Sale
Active
3
BED
3
TOTAL BATHS
1,844
SQFT
3352 Alta Ln
Murfreesboro, TN 37128
Oak Haven Subdivision
New Listing - 4 days online
$276,999
Single Family Home For Sale
Active
3
BED
3
TOTAL BATHS
1,948
SQFT
3354 Alta Lane
Murfreesboro, TN 37128
Oak Haven Subdivision
New Listing - 5 days online
$330,000
Single Family Home For Sale
Active
3
BED
3
TOTAL BATHS
1,630
SQFT
529 E State St
Murfreesboro, TN 37130
his Subdivision
New Listing - 6 days online
$336,990
Single Family Home For Sale
Active
4
BED
3
TOTAL BATHS
2,155
SQFT
3118 Rift Lne
Murfreesboro, TN 37130
Valleybrook Subdivision
New Listing - 7 days online
$264,810
Townhouse For Sale
Active
3
BED
3
TOTAL BATHS
1,735
SQFT
2539 Salem Creek Drive
Murfreesboro, TN 37128
Ashton at Salem Creek Subdivision
New Listing - 7 days online
$264,810
Townhouse For Sale
Active
3
BED
3
TOTAL BATHS
1,735
SQFT
2541 Salem Creek Drive
Murfreesboro, TN 37128
Ashton at Salem Creek Subdivision
New Listing - 7 days online
$256,730
Townhouse For Sale
Active
3
BED
3
TOTAL BATHS
1,735
SQFT
2436 Salem Creek Court
Murfreesboro, TN 37128
Ashton at Salem Creek Subdivision
New Listing - a week online
$264,810
Townhouse For Sale
Active
3
BED
3
TOTAL BATHS
1,735
SQFT
2537 Salem Creek Drive
Murfreesboro, TN 37128
Ashton at Salem Creek Subdivision
New Listing - a week online
$239,900
Townhouse For Sale
Active
2
BED
3
TOTAL BATHS
1,599
SQFT
4122 Suntropic Ln - Lot 33
Murfreesboro, TN 37127
The Villas at Del Sol Subdivision
New Listing - a week online
$393,900
Single Family Home For Sale
Active
3
BED
3
TOTAL BATHS
2,530
SQFT
17 Hon Circle
Murfreesboro, TN 37128
Magnolia Grove Subdivision
New Listing - a week online
$256,075
Townhouse For Sale
Active
3
BED
3
TOTAL BATHS
1,665
SQFT
2438 Salem Creek Court
Murfreesboro, TN 37128
Ashton at Salem Creek Subdivision

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

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