Buying A New Construction Home in Colorado Springs.
It is very common to think that if you are purchasing a newly constructed home from a builder that you don’t need an agent representing you. True, you don’t have to have an agent, but, who is watching out for your best interest?
When a builder works directly with a buyer who is not represented, chances are the builder will not lower the price of the home, this would affect the comparables for future sales, and if word got out to agents representing buyers that they were doing this, well, in effect they would be biting the hand that feeds them. When a buyer’s agent is not involved, the builder often increases the commission to their sales representative. Again, who is watching out for your best interest?
The buyer’s agent works on behalf of the buyer, not the builder, and needs to be identified to the builder at the first meeting. Like any other transaction, the buyer's agent is paid by the seller or builder at closing. A strong agent will be actively involved with the builder, keeping them honest and the construction project on track. In today’s market, many builders are hurting for sales, so it is common for builders to “court” buyer’s agents hoping that the agent will show the builder's properties to their buyers. This may give the agent some negotiating leverage, such as getting “free” upgrades for the buyer when the builder will not negotiate on price.
If you are thinking about buying a new home, consider hiring a strong buyer’s agent to help with the negotiations and the construction process.
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