ADVERTISE WHILE EDUCATING: Many buyers believe they do not need representation when purchasing from a builder.

Mortgage and Lending with CMG Financial

It does not cease to amaze me the number of people who are shopping for the best deal for a home or mortgage on the internet.  Our buyers have a wealth of information at their fingertips.  They seem to be more informed.  

However, it does amaze me the number of buyers who honestly do not think they need representation when purchasing a home from a builder.  They are often even willing to take the builders financing from the builder owned mortgage company.

I had previously worked for builder owned mortgage companies.  While working there, I often advised buyers that it IS in their best interest to be represented by a realtor.  Once I explain the benefits, they understand the need and typically seek out a realtor that they were comfortable with.

The examples I have given in the past are:

  • You do not pay the realtor.  The builder does.  But, the realtor truly does work for YOU and not the builder.
  • A realtor is key in negotiating the purchase agreement.
  • Builders often have incentives that are not awarded to the buyer due to the fact that they need to make as much money as possible.  Therefore, if they do not have to give away the farm they won't and they will not let you know what you are missing.  An experienced realtor will find out what is not being given to the buyer. 
  • They also track the building of your home.  They are key to finding the defects that the average buyer may not see.
  • A realtor is key to moving the process along for the buyer.
  • An experienced realtor is key in advising whether or not your builder and lender are truly giving you the best deal they have to offer.

Upon reviewing ads on the internet, it was surprising that I did not see any ads from realtors explaining the importance of using a realtor to purchase from a builder. I feel this is a marketing avenue that is not being explored enough.


I think it would be very beneficial if we would stand up and claim some of this business back.  Educate your potential clients in your advertisements.  We need to remind them that we are their partner in this transaction and only looking out for their best interest.  We need to make the public know that they CAN and SHOULD seek the advise of a realtor- ANYTIME they are looking to purchase real estate.  ADVERTISING WHILE EDUCATING.... WHAT A CONCEPT! 

Builders are not necessarily going to advise the buyers to get a realtor.  And as we know our buyers get information from EVERYONE when they are purchasing.  I feel with the market being as it is currently, we have a wonderful opportunity to RE-EDUCATE our buyers. 

HAPPY ADVERTISING AND EDUCATING!  I am certain it will pay off. 


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Lisa Friedman
Alliance Realtors - Bedminster, NJ
Central New Jersey Real Estate

Monica, very interesting and thought provoking points. Thank you for the good post.

May 30, 2008 01:12 PM #1
Ida McCarthy
Ida McCarthy-Lombard Real Estate - Lombard, IL

Hi Monica,

I just did a post on SSA taxes with new construction because I've met so many people who have done just what you said.  They're out driving around on the weekend and just buy a home from the builder. 

Buyers should always be represented when buying a new home, there are just too many issues that become one-sided during the transaction.  The Builders Side!

May 30, 2008 01:15 PM #2
Russ Ravary ~ Metro Detroit Realtor call (248) 310-6239
Real Estate One - Commerce, MI
Michigan homes for sale ~

Thanks for explaining the need for a experienced person in your corner when buying any home (new or otherwise).

May 30, 2008 01:25 PM #3
Jennifer Fivelsdal
JFIVE Home Realty LLC | 845-758-6842|162 Deer Run Rd Red Hook NY 12571 - Rhinebeck, NY
Mid Hudson Valley real estate connection

Monica - This is so true, I also pointed out the importance of using an agent when looking for new construction while telling the public about a new subdivision in my marketplace.

May 30, 2008 02:09 PM #4
Cindy Jones
Integrity Real Estate Group - Woodbridge, VA
Pentagon, Fort Belvoir & Quantico Real Estate News

I represent a builder as well as work in the resale business.  Guess that makes me a strange breed.  Anyway you are right that many people do walk in the builders front door without representation.  But the people that come in the door are for the most part the same people who would walk into an open house or call on a sign.  They don't necessarily care about their own representation and probably aren't ever going to call an agent.

May 30, 2008 02:47 PM #5
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