Who's Looking Out For You? Consumer advocates encourage using your own buyer agent (this person can be a Realtor® too), inasmuch as an onsite agent -- also know as a listing agent -- represents the builder and/or seller. The enclosed information is regarding new homes; for resale homes, click to learn more about a buyer's agent. Get your report for tips on negotiating with a home builder. 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 the model home or the sales center and works on behalf of the home builder; sometimes this agent is referred to as New Home Counselor or listing agent. This representative seeks 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 marketing fee (sales commission) that has been outlined in the listing agreement -- and it is paid by the builder upon closing. Generally speaking, regardless of the negotiated price and terms between the builder and the buyer, the new home you are buying has a predetermined sales commission built into it. The home builder allocates a percentage of the sales price to the agents involved upon the closing of your new home -- roughly 50% of the commission 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; or, the builder simply retains the overage. 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? Does this process apply to bank owned or foreclosed new homes? Yes. The bank, which is the seller, usually hires a listing agent to sell their foreclosures. The homes are then placed in the MLS system so other agents can show them to their prospective buyers; the same principle already mentioned will apply. 
What if I don’t have my own buyer agent? Generally, you are left to fend for yourself and the onsite agent (listing agent) or the home builder/seller retains the entire marketing fee, also known as a sales commission. Moreover, you will rely upon the builder’s perspective (or the bank if it is a foreclosure) on every issue that will inevitably arise during the entire course of the transaction. Read The Testimonials. At your request, I will give you a new home purchase agreement for you to review; you will see in the contract that you have opted not to be represented and that the onsite agent is the builder’s representative (the bank's representative if it is a foreclosed new home). The section for your agent will be left blank and marked “N/A”, unless you engage your own buyer agent. 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, maybe or maybe not, insomuch as the onsite agent or home builder will simply keep the overage of the sales commission -- regardless of the final negotiated price and terms; this all depends upon the verbiage outlined in the listing agreement between the listing agent and the builder (or the bank if it is a foreclosure). Read more about how real estate commissions are allocated between the listing agent and the buyer's agent. Therefore, a good buyer’s agent can be an invaluable asset to a new home buyer. This person is usually privy to sales data that will assist in how to negotiate effectively with that particular home builder to seek to get a better deal than what is being offered. 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 or discount because you have opted not to be represented by a buyer’s agent. However, our buyer bonus rebate may be comparable to, if not better than, any incentive that would be offered because of non-representation; furthermore, that "special" incentive or discount 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; don't get led astray by smoke & mirror tactics. Learn more about negotiating with a home builder. Do I really need a buyer agent? First let me say, you do not need someone who will not bring value to your transaction; but, it would be beneficial to have a competent buyer advocate looking out for you. Regrettably, some home buyers do not realize this until problems begin to arise in their transactions. At that point, it would be too late to engage 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 similar; 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 and construction process that may be unacceptable -- even during the pre-closing walk-through for new homes that are already finished (inventory homes, spec 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 and a negotiation strategy to resolve the issues in such a way so that your interests are promoted. There are two sides to every issue -- and potentially real money saved. Do I have to pay you directly to be my buyer’s agent? No. Our firm only receives *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 areas do you serve? ** Most of the Atlanta area; Fulton County, Cobb, Cherokee, Gwinnett, Dekalb, Rockdale, Newton, Paulding, Henry, Forsyth, Douglas, Fayette. The cities of Lawrenceville, Sugar Hill, Duluth, Dacula, Auburn, Norcross, Peachtree Corners, Buford, Suwanee, Snellville, Grayson, Alpharetta, Cumming, Roswell, Marietta, Kennesaw, Acworth, Powder Springs, Austell, Mabelton, Vinings, Smyrna, Dallas, Hiram, Douglasville, Lithia Springs, College Park, Fairburn, Union City, Stockbridge, McDonough, Locust Grove, Conyers, Fayetteville, Sharpsburg, Covington and Lithonia. Other areas may apply; call for details. What else will my buyer's agent do? With diligence, your buyer's agent should delve into certain information, if available, 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; that is my approach. I strongly suggest that a new home buyer read more about the real-world difficulties that can arise from the home inspection process too. Furthermore, through experience with a multitude of transactions, I seek to identify when mortgage lenders are manipulating fees to obscure the true costs of obtaining a loan; these tactics can cost home buyers hundreds, and even thousands, of dollars at closing. Read more about mortgage problems for buyers. 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: Our firm was representing a buyer of a new construction home in Cumming, GA -- and I was the associate working with the buyer. During one of the meetings with the buyer and the builder's superintendent (learn more about the new construction walkthrough process), I 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 builder's 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, which in turn 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. I 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 home builder? I think so. In most cases, it is the result of oversight. To make a long story short, I resolved this issue by pointing out the code violation to the builder's builder's superintendent -- 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 me and I will give you a no-obligation over-the-phone consultation. I will put it in writing that you will be actually receiving an extra 1% to 2% rebate bonus from our firm; don't leave your home purchase to chance. Note: Stephen Graham is an Associate Broker of Realty Professionals, Inc. -- not a home inspector or attorney; 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. ** There can be limitations on the areas served. 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. Buyer's Agent Needed For New Home Community Buyer's Agent Atlanta Georgia GA New Homes 
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