Here's an absolutely true story (I wish it weren't) about why you really do need a Realtor when you're buying a new construction home from a builder:
My buyer client and I looked at maybe 30 homes together over the course of a three month period last summer.
He'd like what we found and then would have relatives and friends come take a peek at his choices. After their input he tended to spin off in a wave of confusion, so we'd begin the search again. And again. And again.
On our last day out together, he invited a friend I hadn't met before to have a look at a new construction ranch he liked. We were doing a second showing and he was close to making an offer on the property with my help. The friend, who claimed to be a builder, told him that he could do better for him.
Off they went, I suppose, because my client quit returning my phone calls or answering my emails after that day.
Today I checked the property tax records and saw that he bought a new construction home in our area for $195,000. It was a builder transaction not in the MLS. No surprise. And it was also no surprise to see what had happened to him.
Can you guess?
There had been six other sales in the same neighborhood over the same time period -- all listed in the MLS and using Realtors on the buyer side.
Those homes sold for:
$169,000
$159,000
$172,000
$151,000
$159,000
$154,000
My former client got royally screwed (that's the technical term) by his friend, the builder.
He paid about $23,000 more than the highest priced home in the neighborhood, and $30,000 more than the average neighborhood price.
So friends...when a builder tells you that you don't need a Realtor to represent you in a new construction transaction, thank him for his advice and use your Realtor anyway. The seller/builder will pay your Realtor's commission and you'll get a better deal. You will have your own agent advocate during the transaction and your won't be duped into overpaying for your new home.
The builder told you not to use a Realtor? Of course he did...
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