New Construction Myth #1
December 3, 2016 | admin
Myth: You can get a price reduction from the builder by not having a Realtor
This is the most common misconception in the new home buying process. Buyers assume that if they walk into the builder’s “sales office” that they are buying directly from the builder and getting a better deal. The simple truth is that the builder has his costs to build the home. Just as the roof or plumbing is part of his costs, so is the buyer’s agent commission. It is built into the published price of the new home. In most cases, the “sales rep” in the model home is a Realtor that represents the seller. When you enter an agreement to purchase a new home via the on site Realtor, you are entering into what the real estate industry calls a dual agency relationship. Dual agency means that the Realtor you are working with is paid both the sellers and buyers commission and represents both parties. Now think about this for a second. If you run into some challenges (and you will) as your home is being built, do you want the person between you and the builder to be someone that makes the bulk of their income from that builder. How in the world can you expect them to be an advocate for you with this relationship in place?