Yes, you heard it correctly - you do not need an agent when buying a new construction home. But if you know anything about the building process, when it comes down to it - will you want an agent to represent you with the builder? Most likely, the answer will be YES. 

Currently, builders are sold out of inventory. When something does come on the market, the line is incredibly long for buyers. Because of this supply and demand, there is no negotiating. The price you will pay is the price that is listed.

Buying new construction without an agent

The options for new construction homes are minimal. One of the jobs of an agent is to negotiate on a buyer's behalf, and since there is no bargaining, there is no reason to hire an agent, right? 

Buying New Construction Without an Agent

Because of the non-negotiation with new construction, you do not have to hire an agent to get the best price, but is that the best idea?

 

If you decide to purchase a new construction home on your own, which we do not recommend, there are some things you must know.

When you purchase a new construction home, it is a six to 12-month process, and you must resolve problems quickly when an issue arises.

When you hire an accomplished agent, you receive unlimited access to an expert who has the know-how to effectively respond to unforeseen decisions as they arise throughout the building process. 

Building a Home is Unpredictable 

Building a home is unpredictable. Because contractors are human, mistakes happen. More errors than usual are occurring in today's market due to the limited and chaotic supply chain and labor shortages. 

Expect mistakes to be made and to experience some significant concerns throughout the building of your new construction home. 

New Construction Issues are Big Issues

New construction problems are typically big headaches. The question you must ask yourself is when those obstacles arise, who will you call?

Will you take on the enormous responsibility of working with the builder through this time-consuming process to find resolutions? 

Even though there is no negation with list price and lot options, an agent provides peace of mind. Agents are a sort of insurance policy allowing you to sleep well at night, knowing when the unforeseen occurs, there is an adept party there to resolve it. 

Is it possible the building process goes smoothly without a hiccup? Yes. Is that a definite? Absolutely not. 

Things to Know if You Don't Work with an Agent

If you choose to handle the responsibility of buying a new construction home without the representation of an experienced agent, know that:

The builder will not lower the price or offer you any cost savings because you don't have an agent. 

It is illegal to offer incentives or commissions to non-licensed home buyers in many states. 

Builders do not want to alienate the agent community. 

If builders begin to get a reputation of encouraging buyers to purchase without an agent, that results in a bad reputation for the builder. 

Something will go wrong.

Regardless of your homework and how savvy you are, you don't know what you don't know. And you don't know what will happen three or four months into the building process. 

What happens when the home inspection pulls up a crack in the foundation? The builders and subcontractors will likely tell you it is normal. An agent is telling them; no, that is not a good enough answer. We will make sure a structural engineer comes out and gives an analysis. A builder's nightmare is a structural engineer.

Would you know how to get a structural engineer to the building site? Do you have the know-how to escalate issues to senior members of third-party services?

Using an Agent When Buying a New Construction Home Results in Peace of Mind

Issues will arise from the tile being uneven to a crack in the foundation while building your new home. The question is, do you genuinely have the knowledge and time to handle these complications?

Hiring an expert agent who has the wisdom to ensure your home is built according to your wishes gives you peace of mind. It is essential to enlist not just any agent but an agent who has a track record of selling new construction homes. 

 

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Khalil El-Ghoul

Discover our 2.25% Full Service Listings and Buyer Rebates. Khalil is dedicated to guiding home buyers and sellers with expert advice and objective information. For professional real estate assistance, text Khalil at 571-235-4821 or email khalil@glasshousere.com today.