How Real Estate Agents Help Home Buyers

Having a buyer’s agent on your side when looking at new
construction homes is crucial to your ability to negotiate. Here
are three reasons why.


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Recently, a client asked us why he would need a buyer agent with
him while looking at a new construction property. He felt that he
could get a better deal and be in a better negotiating position if
he worked with the seller’s agent directly. In this case, he failed
to realize a few important things:

The listing agent has a contract with the seller. A buyer
has no negotiating leverage when dealing with the listing agent
because that agent will work to make sure that they maintain their
percentage of the sale price. This is called dual agency. A
buyer’s agent does not cost you money. The seller’s agent
has no fiduciary responsibility to the buyer. This leaves your
financial position as a buyer open to the seller. Sometimes price
is not the only avenue for a deal; sometimes it’s the closing dates
or financing. In any case, none of those issues are kept
confidential in a dual agency situation.
There is no reason not to hire a buyer’s agent to represent you
when buying a home. A buyer’s agent costs you nothing and is the
best way to protect your financial interests. This is why you
should be sure to find an agent before you even begin looking at
properties. A lot of new construction agents are not Realtors; they
have what is called a developer’s license, so when you go in to
sign the book, you’re actually signing up with them to represent
you. Be very careful about this!

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The listing agent has no fiduciary responsibility to you.

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If you need help finding a great agent or you have any other
questions about buying or selling real estate in our area, give me
a call or send me an email. I’d be happy to help you!