Purchasing a New Home Without a REALTOR? BIG BIG Mistake!

Managing Real Estate Broker with RE/MAX Prestige 01723613


Should I use a REALTOR when purchasing a brand new home?

The answer is simple.....YES!




1. Builders are there to make a profit by selling one of their homes. They don't want you buying a house other than one in their community. So if their only concern is for you to purchase in one of their specific communities, how can they have your best interests in mind?

As REALTORS, we are required to represent the best interests of our clients. Whether our clients buy new or resale homes, we will always provide objective information, because we want what is best for the client.



2. Going directly to the builder is like going into litigation without an attorney. You are defenseless. They will not negotiate and tell you nothing is negotiable.

We have seen these tricks over and over again. Although market conditions do dictate the amount of negotiating that will occur, it is always your right to try and negotiate. However it is almost impossible when not represented by a REALTOR.



3. Sometimes salespeople at the builder are not very knowledgeable of the local market or even the community they work for. Many times they are moved from one project to another when builders are finishing or starting construction on a community.

Local REALTORS will be able to educate you on local market conditions, available new homes, resale homes, and provide you all the information you need to make an informed decision.



4. Builder contracts are very one-sided. They are written by a team of attorneys who represent the builder and not written on standard REALTOR contracts. If you do not understand the commitments you are making, it is easy to make the wrong decision.

REALTORS will be able to help ask the right questions and guide you in the right direction.



5. Builders control the price of the community.

REALTORS will be able to give you an idea of what similar homes sell for. There is no worse feeling than purchasing a brand new home and finding out the home two streets over in the same community is re-selling for $75,000 less.



6. Builders will never help you fully understand the actual cost of purchasing new.

Many people think purchasing new will save them money in maintenance and upkeep, which is true. However, what is overlooked is the total cost of immediate ownership. This is much more than what is written on the contract, and sometimes this number can be six-figures.

REALTORS will help you understand the actual costs of purchasing a new home.


These are just some of the lessons and not a complete list. Most importantly, it is imperative consumers engage the services of a REALTOR who can guide them through the process of purchasing a new home.



THE BEST PART - If you use the services of a REALTOR when purchasing a new home, not only do you get a professional who is dedicated to representing your best interests, but it doesn't cost you anything! Yes FREE, most builders will pay the REALTORS' commission.


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Sandy Padula and Norm Padula, JD, GRI
HomeSmart Realty West & Lend Smart Mortgage, Llc. - Carlsbad, CA
Presence, Persistence & Perseverance
Sammer, good points here. All too often, there will be a buyer that like the 'fatted calf going to the butcher' thinks he knows it all. In those cases, you will never convince him otherwise and when the buyer's remorse sets in, it is impossible to assist, because the agent did not have an agency agreement in place or the transaction. Then, only the assistance of an attorney $$$$ will be be necessary.
Apr 16, 2013 09:20 PM #1
Sammer Mudawar
RE/MAX Prestige - Anaheim Hills, CA
OC Real Estate Blog

Hi Norman, you're absolutely correct! It's amazing how much value a client can see once there is a problem, unfortunately that is when it's usually too late to help.

Apr 17, 2013 02:49 AM #2
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Sammer Mudawar

OC Real Estate Blog
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