5 Reasons Why You Need a Real Estate Agent When Buying New Construction

Hiring a realtor when buying a new construction home may seem like an unnecessary expense. However, a knowledgeable real estate agent can prove invaluable by saving you thousands of dollars during the process. A realtor is a sure way to protect your best interests when problems arise, for example, an electrical box in the shower. 

5 reasons why you need a real estate agent when buying a new construction home: 

1. Representation and Advocacy

The builder’s sales agent works for the seller (builder), not the buyer. A realtor ensures your best interests are protected during the entire process from start to finish, and will coordinate contract negotiations, inspections, and final walk-throughs. 

2. Negotiation Power

Negotiating with a builder is often different from the average home seller. They are motivated by different things, and may not be as flexible in their terms upfront. However, realtors can often arrange upgrades, closing cost coverage, price reductions, or other concessions such as interest rate buydowns that will never be publicly advertised.  

3. Understanding Contracts and Fine Print

A typical REPC (Real Estate Purchase Contract) is six pages long. A builders’ contract is usually much longer than that and full of fine print and potentially tricky clauses. A buyer's agent will review the contract and flag it for anything that needs special attention and explain complicated terms. 

4. Guidance Through the Process

There are a lot of things to consider when buying a new construction home. A knowledgeable buyer’s agent will have expertise in the workmanship of various builders so you can get the best possible deal without compromising quality. They will also help you review the best lots and floor plans as well as builder timelines to ensure the home meets your needs and that you can sell for top dollar down the road. 

5. Inspections and Quality Control

Just because a home is new doesn’t mean it’s perfect. A few years ago, our team hired an inspector to review a new construction home that had recently passed both city and builder inspections. The residency permit was granted, and everything appeared “move in ready.” The inspector we hired was surprised to find the electrical box in the shower, a major issue that had somehow been missed at multiple stages of construction. Without a realtor, the buyer would have been required to pay for the rectification if they had closed on the property before anyone noticed. Although major problems are rare, an agent can recommend trusted inspectors at critical times so you don’t end up being responsible for a builder error.