You couldn't be more right when you say buyers feel that new construction does not require an agent. Thanks for the tips.

Excellent post! It is in a Buyer's best interests to have a Realtor Representing them. Most buyers think they must pay the price a New Construction or To Be Built Home is advertised for. We can infact negotiate price & get upgrades added, keeping our buyers on budget. In our area the Builder's often offer us bonuses & negoitate well because we actually have a large network of buyers. 

Bob, very interesting blog and informative for us and our buyers. Thank you for sharing!

I love selling new homes. Still lots of things to watch and inspections but most builder in this area seem to know what they are doing. 

Bob,

Good information.   I need to work harder at getting my share of new construction sales.   And yes, buyers always need their own buyer representation looking out for them. 

So many buyers make the mistake of looking at new construction without an agent the first time, then get stuck without representation.

Not to mention the zillion decisions that the buyer has to make that they are not sure of.

I took my client to new construction yesterday,..there were 50 pages of upgrades...EVERYTHING was an upgrade including the water spigots on the outside of the house...it was unbelievable.  My client had no clue about what upgrades was important or not, 

Not to mention, that the base price is not the purchase price.

Eve in Orlando

Hi Bob... I recently wrote a couple of posts, as well, as to why buyers need representation in new construction. This is an important topic. I often get calls from people and neighbors who are having issues with their newly built homes and say they are not getting the attention they need. When I suggest they have their agent run interference for them and they tell me they did it without an agent, it's really too bad, too sad for them. They often don't get that the on-site agent, as friendly as they might be, represents ONLY their principal, i.e., the builder.

add  to the fact that most buyers have full time jobs doing Something Else all day.. and the construction site needs an additional set of eyes on the project, advocating their side during the multiple phases of construction down to the buyer selections..  Ive had rooms repainted, appliances returned because of scratches or dings, light switches moved, outside spigots added.. long list. If you hire a Realtor that has new construction knowledge, knows the process from lot selection, grading, foundations, framing etc.. you have a well appointed advocate in your corner. Lastly, just like a resale, the builder most often  has buyer agent  commission built into the project numbers..ask.

Bob, the logic is simple. An on-site agent represents the builder and only the builder. It doesn't cost anything to have buyer representation and can save a buyer a lot of money and frustration in the end.

I wish they would teach kids in school what Real Estate professionals do and why it's important to have one when you're buying a home. I can not tell you how many times I've heard people say "I don't have to pay you to help me find a house?"!

A very informative post Bob, most consumer do not realize the importance  of representation when purchasing a new home.

The key to NEW is to check out the builder/developer...In the end, disputes need to be handled...Google and do the research..make sure they have a general liability policy too

Great post Bob. Last December, I represented a buyer for new construction and negotiated over $70,000 worth of upgrades including Plantation Shutters throughout, Summer Kitchen and Laundry Room cabinetry with Granite all at no additional charge. Then last month, I negotiated a reduction in my buyer's lot price equivalent to the price of a Summer Kitchen valued at $14,000. My clients were quite pleased and have already sent referrals. Is it valuable for buyers to use a REALTOR® for new construction? You bet!  

Jeffrey #24 shares a common misconception in the Real Estate business...People need to know how easy and effecgive having an agent is and how not having one is risky

Great post. Buyers need to realize they need a buyer's representation when they decide to purchase  a new construction. Agents at the new construction site are representing the seller only. On another topic, buyers also need to realize that there is also the need for a home inspection during the transaction. Just because the home is new doesnot mean it is without imperfections.

Many home buyers do not know they can have a Realtor® when they are buying a new construction home. Great points as a Realtor® works for the home buyer in a new construction home purchase; the agent in the sales office is works for the builder.