You Need a Realtor Even on a New Build

Lorraine Ryall

With the grand opening of Ryland Homes at Las Sendas just around the corner, buyers are eagerly waiting to view the models and find out the starting prices.

Buyers make one mistake right off the bat, however, by going to these communities on their own and purchasing the home directly from the builder without using a Realtor and not having any representation of their own.

1. Builders Sales Reps Represent the Builder. There will be sales reps who also may be Realtors on site to give you all the information on the models and the community, to help you pick from the many upgrades and even set you up with financing. Remember, though, these agents represent the builder, not you. Their job is to sell the homes, and their obligation is to the builder, not to negotiate the best deal for the buyer or to protect the buyer’s best interest in the transaction. The builder’s rep isn’t going to just offer you an additional discount, or help you negotiate a better deal on upgrades, or tell you why it may be in your best interest not to use the title company or lender they suggest, but your own Realtor will.
2. Fiduciary Responsibility. The sales representative’s fiduciary responsibility is to the builder. Having your own Realtor means having someone who is taking care of your best interests and whose fiduciary responsibility is to you. Your Realtor will have the knowledge and expertise to help you navigate through the purchase contract, and understand the terms and conditions before you sign on the dotted line.
3. Negotiating a Better Deal. Once you have found the perfect model home, and you are ready to write an offer, your Realtor will be at the table with you, and will be the liaison between you and the builder to help negotiate a better deal on your behalf. With professional knowledge and expertise, your Realtor may be able to negotiate a better purchase price, discounts on the many upgrades you will likely add on, or negotiate better terms. Most builders want you to purchase using their specific lender and title company, and often offer incentives to the buyer to do so. On the other hand, your Realtor may be able to advise you on other lenders or title companies whose terms may be more beneficial to you, or whose rates and fees are better even without the incentives.
4. Myth. One of the biggest myths is that buyers believe the builder will discount the house if they don’t use a Realtor. This is a myth. The builder does not offer a discount if you purchase directly from them. When they set the price of the homes and determine their marketing budget, they have already factored in how many buyers will use a Realtor and how many will not. Builders made that adjustment to the base price of the home for all buyers.
5. Don’t Sign Anything Without Your Realtor—Not Even the Registration Form. When you first walk into the model home office, the nice and friendly sales rep will ask you to sign in, but remember they work for the builder, not you. What they are not going to tell you is when you register with the builder, you actually are waiving your right to representation. Even if you go back later, with your Realtor, it’s too late. You have signed that right away. Make sure your agent is the first point of contact and comes with you on your first visit to register you as a client. Once your Realtor has registered you, you can go back as many times as you like without your agent to look at the model homes or get more information. However, as soon as you are ready to start talking about writing a contract or discussing anything with the sales rep, from what upgrades you want, to your financing options, makes sure your Realtor is always with you.
6. Your Realtor is Your Advocate, and it’s Free. Your Realtor knows and understands the purchase contract, and will be able to point out any red flags on the Builders Purchase Contract, which may leave you at a disadvantage. If anything should go awry during the building of your new home or the closing process (and trust me they can and often do), having your own advocate to hold the builder accountable, per the terms of the contract, can save you time and money and a lot of headaches.
7. Why You Should Have an Inspection on a New Build. Due to space limitations, I couldn’t fit this into my article. However, you may be surprised to read why you need one. Please check out my website to read the answer, as well as my own personal experience regarding what the builder forgot to do when building our home. Go to www.Homes2SellAZ.com/Blog/NewBuild.

Lorraine Ryall is a Multi-Million Dollar producer and a recipient of the Coldwell Banker International President’s Circle Award. For more information, call (602) 571-6799, or visit her website at www.Homes2SellAZ.com.