Who's Looking Out For You?
Consumer advocates encourage using your own buyer agent, inasmuch as an onsite agent -- also know as a listing agent -- represents the builder and/or seller.
What is an onsite (sales) agent? This is a real estate agent, licensed or unlicensed, who has entered into a contractual agreement to sell the home builder’s new homes and to promote the best interest of the home builder. This is the agent who sits in a model home or a sales center who work on behalf of the home builder; sometimes they are referred to as New Home Counselors or listing agents. They seek to get the best deal for the home builder.
What is a buyer('s) agent? Aside from referring home buyers to new home communities, a true buyer agent is an unbiased & independent licensed real estate agent who is focused on promoting the buyer’s best interests. A buyer's agent is watching out for you, the buyer. However, not all buyer agents are equal. When you contact me, I will give you a no-obligation over-the-phone consultation regarding my emphasis on new homes and my focus on promoting your interests.
How are onsite agents & buyer agents compensated? In short, they are compensated by the predetermined sales marketing fee paid by the builder upon closing. Regardless of the negotiated price and terms in most cases, the new home you are buying has a predetermined sales commission built into it. Generally, the home builder pays a percentage of the sales price to the agents involved upon the closing of your new home -- roughly 50% to the onsite agent & 50% the buyer’s agent. Or, 100% to the onsite agent if you aren’t represented by a buyer's agent. Therefore, since this marketing fee is built into the new home you are buying, shouldn’t you have your own buyer's agent who is looking out for you?
What if I don’t have my own buyer agent? Generally, you are left to fend for yourself and the onsite agent or the home builder retains the entire marketing fee, also known as a sales commission. Moreover, you will rely upon the builder’s perspective on every issue that will inevitably arise during the entire course of the transaction. Read Our Testimonials. At your request, we will give you a typical new home purchase agreement for you to review; you will see in the contract that you have opted to not be represented and that the onsite agent is the builder’s representative. The section for your agent will be left blank and marked “N/A”.
Can’t I get a better deal without a buyer’s agent? First of all, with or without a buyer’s agent, the home buyer will still receive all advertised home builder incentives, promotions and discounts that are being offered by a home builder; but to address the question, usually not, insomuch as the onsite agent or home builder will simply keep the overage of the sales commission. In addition, a good buyer’s agent is usually privy to sales data that will assist in how to negotiate effectively with that particular home builder to get a better deal. There are cases, however, when a home builder and/or the builder's agent might agree to throw in a refrigerator or some other “special” incentive because you have opted not to be represented by a buyer’s agent. However, our buyer bonus rebate is usually comparable to, if not better than, any incentive that would be offered because of non-representation; furthermore, that “special” incentive may well be something that could be negotiated by a good buyer’s agent anyway -- and potentially more. Using your own buyer’s agent is very beneficial.
Do I really need a buyer agent? Think of it this way: would you enter a court room without an experienced representative on your side? When you are building a new home or buying an inventory new home, it is no different; there are two sides. It is a business transaction that requires experience to extrapolate the details. Buying a new home is typically a process that takes 1 to 6 months; inevitably during that time frame, there may be many confounding issues that will arise during the contract & construction process that may be unacceptable -- even during the pre-closing walk-through for new homes that are already finished (inventory homes). So whose perspective do you want??? The onsite agent is there to promote the builder’s interests so they tend to spin the best possible light on every issue; however, with an experienced new home buyer agent at your side, you get an unbiased opinion & a negotiation strategy to resolve the issues so that your interests are promoted. There are two sides to every issue.
Do I have to pay you directly to be my buyer’s agent? No. We only receive *compensation through the sales commission if you close on a new home. Your rebate comes from this compensation. If you don't buy a new home, you owe us nothing.
What else will my buyer's agent do? Your buyer's agent should delve into certain information that shows how a builder is or is not negotiating with other buyers; based on that information, a good buyer's agent seeks a lower price and better terms on your behalf.
What if I have already visited new home communities without enlisting a buyer’s agent? Given the protocol set forth by many home builders, this puts the home buyer at a disadvantage at this point; but, if you sincerely want representation from a buyer‘s agent, then I suggest reading this article on "Builder Won't Recognize Buyer's Agent".
 Buyer's Agent Benefits - Example: We were representing a buyer of a new construction home in Cumming, GA. During one of our routine pre-drywall examinations, we noticed that the upstairs loft area was extremely hot. After further inspection, it was revealed that a required *ridge vent was missing on the roof line. The county inspectors and the superintendent overlooked this code violation. Ridge vents typically run the full length of a gable. The purpose of a ridge vent is to allow hot air to escape the attic area that prevents warping of the decking and excessive heat-damaging air to shorten the life expectancy of the HVAC units in the attic. Excessive heat in the attic also reduces the cooling efficiency of your home that can cost hundreds, if not thousands, in extra utility bills. We see these types of violations and many others quite frequently that an unsuspecting buyer wouldn’t know about. The State of Georgia took the steps to record these code violations. Shouldn’t they be implemented by the builder? We think so. In most cases, it is the result of oversight. To make a long story short, we resolved this issue by pointing out the code violation to the builder and the required ridge vent was installed which allowed the hot air to escape. Had this gone uncovered, this error could have cost the buyer in the long run.
What should I do? Contact us and we will give you a no-obligation over-the-phone consultation. We will put it in writing that you will be actually receiving an extra 1% to 2% rebate bonus from us and there is no cost to you; don't leave your home purchase to chance.
*Ridge Vent
Note: Stephen Graham is an Associate Broker of Realty Professionals, Inc. -- not a home inspector; however, as a versed new construction buyer's agent, he works with knowledgeable home inspectors to identify construction concerns that the home builder needs to address. He facilitates the process and otherwise contends on the buyer's behalf to promote the buyer's interests in this all-important area of concern.
* Since we do not charge the home buyer directly for our buyer agent services, we obviously run the risk of earning no compensation after performing much work should the home buyer not buy a new home; therefore, we may, occasionally, earn sales bonuses from home builders when home buyers actually close on their new homes.
The information set forth on this webpage is only a general overview of a new home transaction; each real estate transaction is unique unto itself.
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