Should You Have Representation When Purchasing a Brand-New Home?

Houston Real Estate Podcast with Dale Ross

When buying a brand new home, it’s best to hire a Realtor to represent you. Here’s why.

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It’s always best to have a Realtor represent you when selling a home, but what about when buying one? There a few reasons why you want a Realtor representing you while looking to purchase a home.

First, here are a few facts on what you are getting into when buying a brand new home.

Whenever you buy a brand new home, the salesperson is not a licensed Realtor, so they are not obligated to abide by any laws or code of ethics that Realtors have to. New home sales agents are representing the seller and the seller only.

The builder of the new home might also have a stake in the mortgage company that you get referred to, and the builder might also own a piece of the title company you go through.

So, throughout the entire transaction, the builder has total representation in every aspect of that transaction.

Now, when you have a Realtor representing you, the first thing they are going to do is get the builder to disclose all the information so you have that going forward. For example, there may be things that will end up costing you money down the road that may make you want to back away from that property.

If you’re looking to buy a home, hire a Realtor to represent you.

A Realtor is also going to know things that are negotiable in a contract. There are things the builder would try to put all on you and see what they could get away with if you lacked representation.

If you are not aware of some of the expenses that come with this kind of transaction, you would be the one paying them. That’s why it’s so important to have a Realtor representing your transaction, not to mention they can usually get you a better price. A Realtor will know the builders, and will know that some of them negotiate better than others.

Another thing to keep in mind is that when buying a brand new home, the builder’s attorneys write the contract, so the contract is tilted in the buyer's favor. Having representation will help to rework the contract to be more in your favor.

If you have any questions about buying a new home or a resale home, please give me a call or send me an email. I would be happy to help!