Top 3 mistakes buyers make when building a new home

Mistake #3:  Buyers assume that the agent sitting at the open house or model is there to help them as a buyer.  While that is true to some point, their loyalty is to the builder or seller, looking out for their best interest first.  If you begin working with the same agent that the builder has working for them, it creates what is called dual agency and the agent is to become a neutral.  Which can have pros and cons, but why not have an agent on your side looking out for your best interests?  The builder will typically pay the commission to that agent representing you, and, you can get a rebate in the states that allow it, so why wouldn’t you have an agent on your side and get a rebate besides?

Mistake #2:  Buyers don’t want to feel they are wasting their real estate agent’s time and will go out and look at models on their own.  This is fine, but, if you sign in with the builder’s representative, who should also be a real estate agent, it may be difficult to bring in your own agent later.  You will likely be asked if you are working with an agent and if the builder asks, you want to be able to provide your agent information.  Getting an agent lined up before you are ready to begin looking is ideal, however, getting an agent on your side as soon as possible in the process can usually work as well.  Having an agent on your side can end up costing you nothing, and you can get a rebate.

Mistake #1:  Buyers think that by going to the builder without an agent, they will save money.  Not only can having an agent on your side help you through the process, they can also help you negotiate on price and get you a rebate!  Builder’s pricing almost always includes real estate commission being paid to the agent working with the Buyer.  Once a property closes, the sales price becomes public information.  A builder isn’t going to sell one house to a buyer that doesn’t have an agent on their side for a lower price than someone that is working with an agent.  They would cannibalize their own pricing.  You will almost always save more money when you have an agent on your side and get the rebate.  The rebate isn’t reflected in the price, it’s typically a credit to you at closing, so a builder should have no problems with you getting a rebate.