New Construction
Most builders have “decorated model homes” in which the builder’s representative (either working directly for the builder or a real estate brokerage) sits inside and waits for prospective buyers. While this is the most common and convenient way to attract sales traffic, it is also the easiest way for the builder to attract prospective buyers without representation.
How many times have you driven past a new community you’ve always wanted to visit? You finally have time to ride through and decide to tour the model home. In most cases, the moment you’ve done so without an agent, you forfeit your opportunity to have your own representation. How, you wonder? Read the fine print. Most builders have a disclaimer statement which reads, “Real Estate Agents must accompany clients on the first (initial) visit to the community to receive compensation.” What does this mean for you? It means as soon as you sign in without your real estate agent, the builders representative either gets a bonus, or both sides of the commission when you sign a contract without your own real estate agent.
To clarify, in a typical real estate transaction, the seller pays real estate fees for the both the listing agent and the buyer’s agent. This means it is free for a buyer to have a real estate agent. When you go to a new construction community by yourself and sign in, there is a record of your visit without a real estate agent. Should you decide to buy in that community, in most cases, you are at the mercy of the builder’s representative to write and present a contract to the builder.
A good real estate agent will make sure you are getting a deal you feel comfortable with, even if the deal is mostly on the builder’s terms. They will also be able to point you in the direction of other industry professionals during the construction process. Even if you’re not ready to buy, take one of our team members with you to the initial visit. Once you are registered with as having an agent, you can go back as many times as you want on your own.
For new construction buyers in DC, Maryland, or Virginia, contact me today for a no obligation consultation. For buyers I represent, I offer a free new construction toolkit valued at $400.
