Why Have Realtor Representation for New Home Sales

By
Real Estate Agent with Lyon Real Estate - El Dorado Hills CA DRE# 01499004

With all the signs and flexible open house hours, many buyers may think they can just check new homes out on their own.  Sometimes they don't want to bother their Realtor if they have been working with one (which don't ever think you are bothering me) but most of the time they just don't realize the value in having Realtor representation on a new home sale. I was recently referred to Why Have Buyer Representation for New Home Salesa new buyer who tried to go it alone.  Sadly right before they took her deposit check (which are not easy to get back on new home sales), the onsight agent there told her about a $65K lot premium on the home she was going to be purchasing but had never mentioned it before.  It scared her to the point that she decided not to do it as she now doesn't trust them.  Unfortunately, since she registered with them on her first visit they will not pay the commission to me to help her.

When I spoke with the onsite agent at the community she is looking into, I asked if they require people to sign in when they come there.  The answer was yes. I then asked if they ask the buyer if they are working with a Realtor and the answer was no.  They make it apprear very nonchalant but once you sign in with at a new home community you are stuck working with their agents who are hired to represent the builder and the builder's best interest not yours.  

The builders generally pay us between 2-4% commission when we prepresent you.  You might think that by going it alone you can apply that to your sales price but that is not the case.  Waiving your right for your own representation just increases the builders net profit and ultimately you have no one looking out for you.  You save nothing but increase your risk.  

If you are wanting to look at new homes here in El Dorado Hills call me any time.  I like to look at them too!

Comments (2)

Diana White-Pettis
Bennett Realty Solutions - Upper Marlboro, MD
GRI, CDPE, CNE, WHC Upper Marlboro Homes for Sale

DeeDee,

This is great advice that buyers looking at new home sales should be aware of.  They should always go with representation to protect themselves.

Feb 24, 2017 08:21 PM
DeeDee Riley
Lyon Real Estate - El Dorado Hills CA - El Dorado Hills, CA
Realtor - El Dorado Hills & the Surrounding Areas

Thanks Diana!!! I appreciate your feedback.

Feb 26, 2017 02:08 PM

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