Buying a New Home – Use a Buyers Agent to Negotiate the Best Deal With Custom Home Builders

If you’re in the market for a new home, you probably do like a lot of people do: Drive around from builder to builder, talking to many different sales representatives in each of the sales offices. I know. I’ve been there, done that, bought the t-shirt, and it’s no fun. But did you know that strategy may be costing you money?

You actually are missing some golden opportunities in the negotiation process if you take the “go it alone” approach and hit the pavement yourself. Sure, you get to fill up your gas tank a few times and get frustrated hearing all the different sales pitches from each builder, but you can live with that. It’s the money you want to save, right?

The problem is that buying directly from the builder with no agent representing you means you don’t have an advocate on your side who knows the market and can potentially bring you better prices and terms. If you use the sales agent assigned to you when you show up in the on-site sales office, they are not acting as your agent but as the builder’s agent. They’re job is to represent the builder, not you.

Use a buyer’s agent to purchase a new home

On the other hand, there is a tremendous benefit to using a buyer’s agent to help you buy a new home. Not just any buyer’s agent, of course; it’s important to use an agent who specializes in new homes and knows the local builders. Your agent’s knowledge of the many builders in your area is what will give you the edge over the buyer walking into the model home or sales office off the street.

The reason it’s so beneficial to have a buyer’s representative on your side is that the home builders are in competition for your business. If you don’t know the deals available down the street or across town, you won’t know to bring that up in your negotiation. Besides, who really likes negotiating, anyway? An agent who specializes in new homes and knows those builders will be aware of the buyers’ incentives they offer and can help negotiate one for you.

In addition, when you have a buyer’s agent, they have a legal fiduciary duty to advocate on your behalf. A buyer’s contract with an agent specializing in new home sales ensures that you’ll get better advocacy at the negotiating table and the potential for a sweetheart deal that only an agent who brings the builders volume business could get.