Can I Use a REALTOR® If I Am Purchasing New Construction?
I’ve been involved in the real estate industry for a long time and one of the most misunderstood and frequently asked questions I get: Can I use a REALTOR® if I am purchasing new construction? In short, the answer is not only can you but you absolutely should! And in my opinion, you are making a costly mistake if you do not use a REALTOR®. In the FishHawk Ranch real estate and Tampa Bay area that I specialize in, most new construction builders use onsite real estate agents that are employed by, represents, and have the builder’s best interests at heart. Having a REALTOR® on your side, to represent you, negotiate for you and look after your best interests are very important.
No! Some buyers think that if they going to a builder without a REALTOR® that the new home builder will reduce the price by the amount of the REALTOR® commission. This is a misconception and cannot be any further from reality. New home builders generally have the REALTOR® commission built into their marketing budget of the home and not into the price of the home. The builders do this to protect the future sale prices of their homes. Remember if a builder sells a home at a reduced purchase price that new sale becomes a comparable for the rest of the homes the builder will be selling in that new community. If they reduce the purchase price by the amount of the real estate agents commission all new buyers will look to get that price. Builders are smart, they don’t want to see that scenario. If a buyer comes in without a REALTOR® the builder will keep the money as profit or in some cases, the builder’s on-site agent will get the commission. If you are really looking to save money, use a REALTOR®! Your expert REALTOR® will know the current real estate market, builder incentives and they will negotiate the best possible price for you.
Can We Negotiate With A Builder?
Absolutely! Builders are just like any other sellers and in some cases, they are easier to negotiate with because they are not emotionally attached to the home. An expert REALTOR® in your local market will know the current market trends, sales, and builder inventory. No builder wants to be stuck with excess inventory. An experienced agent will know what most of the local builders are currently doing as far as incentives and price reductions.
Do Not Visit a New Home Community Without Your REALTOR®
This is important! If you visit the community and speak with a builder representative without your REALTOR® you may have just lost your chance for your REALTOR® to represent you. The builder will not usually acknowledge your REALTOR® as the procuring cause if they are introduced after the initial visit.
At a minimum allow your REALTOR® to register you with the builders at the locations you are interested in visiting. Better yet, visit the new homes with your REALTOR®. If you are in the market for a home and are just out for a Sunday drive, resist the temptation to just “stop in” and visit some new home builders. Do yourself a favor and get your REALTOR® to go with you! If you are in the market for a new FishHawk Ranch home for sale, or a new home in the Tampa Bay area, contact me. I will be happy to help you with this purchase.
Most of the larger builders will require a buyer to sign and use a builder contract for purchase. These contracts are much longer and a lot more complex than the normal real estate purchase contract. For this fact alone, you should use a REALTOR®. Your expert REALTOR® will be able to look at this contract over and explain what it means to you. Typically builders do not allow changes to these contracts but they may allow adding addendums to change certain items. At the very least it sure is nice to know what you are getting into and if you do not like the terms do not buy that house.
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About the Author
The above Real Estate article “Can I Use a REALTOR® If I Am Purchasing New Construction?” was written by Jeff Gould.
Jeff is a top-selling, nationally recognized real estate broker, REALTOR®, and local FishHawk Ranch real estate expert.
In addition to the FishHawk area, Jeff sells residential real estate throughout the entire Tampa Bay area. Including Lithia, Riverview, Valrico, Apollo Beach, Brandon, and the rest of the Tampa Bay area.
If you are looking to sell or buy a home anywhere in the Tampa Bay area, Jeff is your local and trusted professional.
Jeff can also be reached via text or phone at (813) 421-3007.
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