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Why Home Builders Need The Service of a Real Estate Agent?

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Why Home Builders Need The Service of a Real Estate Agent?

The first time clients visit a new construction development, they might be approached by a friendly, cheery sales agent at the model home. That agent typically works for the builder and is paid a commission.

That agent, who gets paid by the builder, may use high-pressure tactics to get buyers to sign contracts and move in quickly. But an experienced agent can point out the pros and cons of a home, such as backing up to a busy road or a floor plan that’s too small for the family.

1. Contracts

Home buyers often search for a new home by visiting and touring builder-model homes. A pleasant, cheery sales agent on-site at the models usually welcomes them. Many home buyers must understand that this agent works for the builder and must consider the builder’s best interest.

An agent with experience in new construction will help buyers negotiate for extras like upgraded counters or appliances and help them shop for a loan. A good real estate agent will also read the contract and ensure that any agreements between the buyer and builder are clearly outlined in writing.

An experienced builder sales broker can spot problems that need to be clarified to the untrained eye, such as a lack of language in a builder’s warranty policy that could lead to legal issues. An agent familiar with local builders will also know which developers have a history of poor business practices.

2. Negotiation

Many buyers are considering new construction as home resale inventory continues to plummet. An agent with recent construction experience can help them understand how to navigate the builder’s standard contract and help shine a light on price breakdowns for things like labor costs.

An agent familiar with local developers can also advise on whether certain builders or development companies are more trustworthy or financially stable than others. It’s not uncommon for a home builder to try to upsell buyers by offering upgrades like granite countertops, stunning backsplash tile in the kitchen, or even oversized energy-efficient windows. To guarantee that the customer receives the best price possible, an experienced real estate agent knows how to bargain with a builder on these issues.

3. Timelines

Homebuilders work hard to keep buyers happy, and the pleasant, cheery sales agents on-site at their model homes seem like the best people to turn to with questions. But these agents represent the builder’s interests, not those of their clients, and often use high-pressure tactics to get a buyer to sign a contract.

Agents can help create a realistic timeline for the home to be built, including padding for construction delays and inclement weather. They can also advise homeowners on various issues, from whether bold backsplash tiling is a style that will stand the test of time to if a dedicated home office add-on will boost resale value.

4. Marketing

Builders love it when real estate agents can help them quickly get their new homes in front of the right buyers. They also appreciate savvy marketing and sales strategies that can help them sell homes faster and for higher prices. For example, many potential buyers will encounter a builder’s agent on-site at a model home.

And then there are the details: buyers need to know what’s included in their purchase and what costs extra. A skilled agent can explain how a lower mortgage interest rate translates into lower monthly payments and what features will likely increase or decrease resale value.


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