If you were headed for divorce, would you consider using your spouse’s attorney to represent you? Of course not. So why would you consider using the listing agent of new construction to buy your new home?
Do you think the listing agent knows all of the details of the construction? Do you feel the direction you get from the listing agent would be to your benefit because of the agent’s close relationship to the builder? Do you think you’ll have the inside track with negotiating the best financial package with the builder by using his agent?
All of the previously asked questions have negative answers. The answer is NO, and if your decision is to use the listing agent of new construction to make your purchase, get ready to lose. Not only will you pay top dollar, but you will buy as many upgrades as you can afford. There will be no thought put into whether you will recoup that money when you sell. There will only be a strong sales pitch in favor of a hefty list of upgrades to make additional profit for the builder.
Securing the services of a buyer’s agent is extremely important when buying new construction, just as it is when buying a resale. If the buyer’s agent is not familiar with the product, the information will be shared by the listing agent and both the buyer and the buyer’s agent will become educated.
It’s the listing agent’s job to provide a clear understanding of what the product is and the costs associated with every upgrade.
There are builders who will not negotiate the list price of a new home because there are many more homes to sell. The price must not be discounted or future appraisals will have issues. The way to beat that scenario is to add upgrades to the full list price, rather than pay extra for them. The price stays the same for the builder, and the home has upgrades for the buyer without extra cost. It’s just as good as negotiating a deal on the list price.
Every buyer who refuses to secure the services of a buyer’s agent when buying a new home brings a smile to every builder’s face, not to mention the extra money in their bank account.
Buyers, what are you thinking, when you attend an open house and say you are not working with a buyer’s agent? Even if you don’t have one at that time, indicate that you will be using one. Put the listing agent on notice that you will use a buyer’s agent, and then use one. That’s the wise move to make, and most builders expect every buyer to have his/her own agent.
Just another thought for the moment….