I’m Buying from the Builder, What do I need an Agent for?

March 13, 2008 by · 2 Comments 

Well it depends on your motivation, you may not need an agent. 

If you’re looking for a better deal, you can negotiate the commission into your pocket in the form of a price reduction, right?  Well No, you can’t.  In Colorado, all major builders are members of the BRC (Builder Realty Council) and part of this agreement is that builders will market their properties to consumers at the same price, regardless of whether you are represented by an agent.  If you don’t have an agent, the money flows to their bottom line.  Remember, a builder will not sell a home to you for less than what they have sold homes to others in the neighborhood.  They would have a revolt on their hands.  All the other new homeowner’s would be placing signs in their yards and screaming about the builder screwing them!

Bottom line:  Whatever deal you can get on your own, the same deal can be had while being represented.  In fact, a knowlegeable agent can probably get you a better deal, since they will have a better idea of how the builder is doing in the market place at any given time.

The builder has an on-site sales person to take care of me.  Yes, there is an on-site person, but their job is not to take care of you, it is to get you to buy a home, at the highest possible price, with as many options as possible.  The on-site person works directly for the builder, and is responsible to the builder, NOT YOU!

Bottom line: Having someone on your side is a huge plus!  Your agent can advise you to picking a lot, or not picking one that the builder needs to move because no one else wants it.  They can also help with options and upgrades.  Many of these options will cost a ton of $$$$ and add very little value to the home.  Wouldn’t it be nice to make an informed decision when choosing your upgrades?

One thing to remember.  On your first visit to a community, you need to have your broker/agent present, or at a minimum hand their card to the on-site person.  Without this, the Builder may not honor your decision to have representation (they actually will allow you to represented, they just won’t pay for it.)  If you are thinking about buying a new build, contact us first.  We have first hand knowledge of all the local builders and will be happy to discuss the pros and cons of each. 

So, it doesn’t cost anything to be represented, you will get the same deal, if not better, and you will get an objective opinion about lot location, upgrades, etc….I retract my opening statement.  There is NEVER a reason to buy direct from the builder without an agent on your side.

We can provide you information on any local builder, simply contact us!

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About Bob

Bob has been an active REALTOR for 18 years. During this time, he has closed over 500 transactions, and has been the broker of record for 1000's more. Bob can be reached via email (bob@gethomedenver.com) or phone (303.770.1180.)

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2 Responses to “I’m Buying from the Builder, What do I need an Agent for?”
  1. This is never easy.

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  1. [...] |Bergen County NJ Real Estate Blog wrote an interesting post today onHere’s a quick excerpt Well it depends on your motivation, you may not need an agent.  If you’re looking for a better deal, you can negotiate the commission into your pocket in the form of a price reduction, right?  Well No, you can’t.  In Colorado, all major builders are members of the BRC (Builder Realtor Council) and part of this agreement is that builders will market their properties to consumers at the same price, regardless of whether you are represented by an agent.  If you don’t have an agent, the money flow [...]



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