REALTORS Sell New Construction Properties Too

Real Estate Agent with Downing-Frye Realty, Inc. Naples, FL

REALTORS Sell New Construction Properties Too

Buyer representation should not be overlooked for resale and new construction

Image courtesy of Bill Longshaw at

Often I will work with customers for a short or long time period primarily on resale listings. Then I'm told that they have turned their attention to new construction and for some reason that equates to I don't need a REALTOR.

This certainly has happened in the past, but lately with more frequency. I firmly believe that the lack of inventory, good inventory, is pushing buyers in that direction. This is understandable. Often, based on requirements, I start by showing new construction property first so the buyer will have that to compare to while shopping resale. I would say that one out of four or five times new construction becomes the choice that the buyer never even considered.

I believe the buyer turning directly to the developer happens because they don't think that a REALTOR can help in the transaction. Nothing can be further from the truth and there are several reasons to engage a REALTOR for buyer representation. When your REALTOR puts in so much time dedicated to you, the buyer, regarding resale (and even new) why would you go it alone when you sign that contract?

  1. The sales associate in a new construction development represents the seller, the developer, not you the buyer
  2. The REALTOR represents you
  3. New construction sales associates recognize that when a buyer is working with a REALTOR, the REALTOR will show the buyer all the competitive new and resale properties for an informed decision. The new construction sales associate will not do that. The new construction sales associate becomes aware that the buyer will be well informed and that there is competition for the buyer's business.
  4. Buyers often feel uncomfortable negotiating. That's what REALTORS do. We push hard for you, the buyer, for incentives and extras.
  5. REALTORS are aware of the usual and customary closing cost items and what they should typically cost. WIth new construction the rules often change by the terms of the developer's contract.
  6. REALTORS are well informed regarding all new construction communities. We are provided information about all new communities well in advance of the initial offering.
  7. REALTORS are routinely invited to developer REALTOR only marketing events touting their community and product. Why? New development developers rely on REALTORS to bring to them a large percentage of buyers. Often REALTORS are the first contact in the area.

Myth: A better deal without a REALTOR. Refer to number seven above. Developers will not risk one deal with the prospect of losing the  respect and support of all REALTORS in the area. There is just too much business to lose.

There are now and soon to be nearly fifty developments where new construction product may be purchased just in the southwest Florida geographic area where I work. Call me.


Re-Blogged 3 times:

Re-Blogged By Re-Blogged At
  1. Karen Baker 08/03/2013 06:58 AM
  2. Fernando Herboso - Broker for Maxus Realty Group 08/04/2013 12:22 AM
  3. Les & Sarah Oswald 07/17/2014 03:44 AM
Home Buying
new construction

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Jill Sackler
Charles Rutenberg Realty Inc. 516-575-7500 - Long Beach, NY
LI South Shore Real Estate - Broker Associate

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

Aug 03, 2013 11:55 AM #14
Christine House
Century 21 Broadhurst & Associates - Myrtle Beach, SC
Century 21 Broadhurst & Associates

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. 


Aug 03, 2013 12:38 PM #15
Short Sales, Foreclosure & Bank Owned Real Estate

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

Aug 03, 2013 01:29 PM #16
Bill Reddington
Re/max By The Sea - Destin, FL
Destin Florida Real Estate

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. 

Aug 03, 2013 01:55 PM #17
Dinah Stallworth-Lewis
Priority Real Estate LLC - 318.332.8281 - Natchitoches, LA


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. 

Aug 03, 2013 02:54 PM #18
MichelleCherie Carr Crowe Just Call...408-252-8900
Get Results Team...Just Call (408) 252-8900! . DRE #00901962 . Licensed to Sell since 1985 . Altas Realty - San Jose, CA
Family Helping Families Buy & Sell Homes 40+ Years

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

Aug 03, 2013 04:50 PM #19
Eve Alexander
Buyers Broker of Florida - Orlando, FL
Exclusively Representing ONLY Orlando Home Buyers

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 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


Aug 03, 2013 09:15 PM #20
Nina Hollander
Coldwell Banker Residential Brokerage - Charlotte, NC
Your Charlotte/Ballantyne/Waxhaw/Fort Mill Realtor

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.

Aug 03, 2013 10:28 PM #21
Michele Connors
The Overton Group, LLC Pitt & Carteret County - Greenville, NC
Your Eastern North Carolina Realtor

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.

Aug 03, 2013 11:20 PM #22
Michael Setunsky
Woodbridge, VA
Your Commercial Real Estate Link to Northern VA

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.

Aug 03, 2013 11:45 PM #23
Jeff Stevens
Berkshire Hathaway HomeServices New Mexico Properties - Las Cruces, NM
Jeff Stevens, Associate Broker

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?"!

Aug 03, 2013 11:47 PM #24
Cheryl Ritchie
RE/MAX Leading Edge - Huntingtown, MD
Southern Maryland 301-980-7566
Great post. I frequently start with new construction, too, then branch out, and then often come back.
Aug 04, 2013 12:06 AM #25
Fernando Herboso - Broker for Maxus Realty Group
Maxus Realty Group - Broker 301-246-0001 - Gaithersburg, MD
301-246-0001 Serving Maryland, DC and Northern VA

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

Aug 04, 2013 12:10 AM #26
Richie Alan Naggar
people first...then business Ran Right Realty - Riverside, CA
agent & author

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

Aug 04, 2013 12:37 AM #27
John Crider
Premiere Plus Realty, Co. - Naples, FL
"Experience The Difference"

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!  

Aug 04, 2013 04:19 AM #28
Richie Alan Naggar
people first...then business Ran Right Realty - Riverside, CA
agent & author

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

Jul 12, 2014 11:17 PM #29
Bob Pisa, Broker Associate
Downing-Frye Realty, Inc. Naples, FL - Naples, FL
Commitment, Service, Satisfaction...

"Finding 'a' house" almost anyone with a computer can do. But that's what you will find, "a" house. Finding the right home comes with listening to the buyer's needs/and and applying a lot of local experience and knowledge to a search and review. It's a Realtor's version of reading between the lines.

And then, as Richie says, reducing a buyer's risk is paramount as well as a smooth transaction not to be underestimated.

Jul 17, 2014 03:17 AM #30
Les & Sarah Oswald
Realty One Group - Eastvale, CA
Broker, Realtor and Investor

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.

Jul 17, 2014 03:33 AM #31
Pamela Seley
West Coast Realty Division - Murrieta, CA
Residential Real Estate Agent serving SW RivCo CA

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. 

Jul 27, 2014 04:24 AM #32
Bob Pisa, Broker Associate
Downing-Frye Realty, Inc. Naples, FL - Naples, FL
Commitment, Service, Satisfaction...

Excellent follow-up everyone, good commentary. Often, it's simply a matter education.

One thing I have learned in this profession is that if you want information you should ask, Ask, ASK for it. will come to learn and undersand more and more. I ask questions of everyone all the time...

Jul 27, 2014 04:39 AM #33
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Bob Pisa, Broker Associate

Commitment, Service, Satisfaction...
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