It’s a common misconception among buyers that new construction homes and communities require them to solely use the onsite agents to buy. This is simply not true. Buyers should have their own real estate agents to help them through the buying process, no matter if it’s new construction or resale.
First, let’s get this out of the way – we LOVE onsite agents! Truly! They have a very important role – to know the product and help the buyer choose the best home plan and home site for them. A good onsite agent will make the whole process of choosing a plan, features, upgrades, etc. much smoother, but there are some important things that a buyer must know about onsite agents:
1. They represent the seller a.k.a. the builder. Just like listing agents on resales, they put the builder’s best interests at the forefront, not the buyer’s. That means if an issue was to arise, like a miscommunication in costs or materials, they would aim to work the resolution in favor of the builder. So, it’s very important that a buyer has their own representation (a buyer’s agent).
2. Not all onsite agents are licensed. Some are just employees of the builder who have been trained in sales for the specific community. So, they haven’t gone through a real estate course, been required to past a state licensing test, or are required to abide by the Realtor Code of Ethics. This does not mean that they are unethical in any manner or that all onsite agents are unlicensed (many are, in fact), but if something was to happen and they weren’t licensed, the onsite agent may not be held to the same set of rules or expectations as a licensed real estate agent.
3. Using an onsite agent doesn’t mean the buyer will be paying any less. Through basic math, many people would think that eliminating one agent would mean that commission would be cut and, consequently, the selling price of the home, but that’s not true. Oftentimes, it means that the onsite agent gets that cut, because they’re taking on additional responsibilities by handling the buying side. So, buyers should not expect any kickback for not using their own agent.
4. If the buyer’s agent doesn’t make contact first with the onsite agent, the buyers may not be able to use them for purchasing in the community. This rule varies from builder to builder, but many builders won’t allow a buyer to be represented unless the buyer’s agent registers their clients with the onsite agent first. It’s their way of protecting commissions and making sure that an agent doesn’t try to step into the middle of the process when negotiations have already begun. So, before a buyer heads out on their own to explore new construction communities, they should inform their real estate agent. They could end up shooting themselves in the foot later on when they decide they do indeed need representation.
So, why is it important to have a buyer’s agent for new construction? The same reason it’s important to have a buyer’s agent for resales – they protect the best interests of the buyer. They know the questions to ask to help the buyer get the most out of their purchase, as well as potential pitfalls and perks. A good buyer’s agent will also be familiar with multiple new construction communities and their current promotions, and will be able to recommend alternatives that fit the buyer’s needs.
If you’re considering buying new construction in Wilmington, NC, or the surrounding areas, give The Cameron Team at call at (910) 202-2546. We’ve sold many new construction homes and are happy to discuss your options further.
