Pros and Cons of Using a Realtor for New Construction
- Author:
- Zachary Sodolak
- Posted:
- December, 13, 2024
- Categories:
- General
When purchasing a new construction home, one key question often arises: should you use a realtor? While realtors are skilled professionals in the resale market, their value in new construction transactions is often overstated. In fact, bypassing a realtor and working directly with a New Home Consultant (NHC) can save you money, simplify the process, and offer specialized expertise. Let’s explore why skipping a realtor may be the smartest decision for your new home journey.
The Pros of Using a Realtor for New Construction
Market Knowledge
Realtors can provide insights into the broader housing market, which is useful if you’re shopping across multiple areas. However, this generalized knowledge often pales in comparison to the in-depth, hyper-local expertise that a New Home Consultant offers.
Process Knowledge
Realtors are familiar with standard home-buying steps, including contracts and inspections. But when it comes to new construction, their understanding may not be as specialized as that of an NHC who deals exclusively with builder processes, warranties, and design options daily.
Representation
Realtors position themselves as advocates for buyers during negotiations. However, in new construction, many builders are less flexible on pricing and incentives—making this role less impactful. Meanwhile, NHCs work directly for the builder but prioritize buyer satisfaction to close the sale.
The Cons of Using a Realtor for New Construction
Commission Cost
One of the biggest downsides to involving a realtor in a new construction purchase is the added commission cost. Builders typically incorporate realtor commissions into the home’s price, which means you could end up paying more. Opting to work directly with an NHC can allow for greater negotiation on upgrades or price reductions since the builder doesn’t have to pay an external commission.
Redundancy with New Home Consultants
Realtors and NHCs often duplicate efforts. Builders’ NHCs are already equipped to guide you through every step of the process, from selecting a floor plan to understanding the timeline for completion. Adding a realtor can create unnecessary layers of communication and complexity, without adding meaningful value.
What Does a New Home Consultant Do?
New Home Consultants are specialists who focus solely on their builder’s communities and offerings. Unlike realtors, who juggle multiple clients and markets, NHCs dedicate their time to mastering the details of a single builder. This allows them to:
- Provide accurate, up-to-date information about available lots, floor plans, and pricing.
- Explain builder contracts and warranties in-depth.
- Coordinate design center visits, construction timelines, and lender communications.
- Offer builder-specific incentives and promotions that a realtor might not even be aware of.
While NHCs work for the builder, their primary goal is to ensure a positive buying experience for you. Since they’re commission-based, they’re motivated to help you find the perfect home and walk away satisfied.
What Should You Do?
For most buyers, the smartest choice is to go directly to a New Home Consultant. By doing so, you’ll:
- Avoid realtor commissions, potentially saving thousands of dollars.
- Gain access to specialized knowledge about the builder and community.
- Streamline communication, dealing with one expert instead of juggling two professionals.
While some buyers may feel more comfortable with a realtor, especially if they’re new to the area, it’s important to weigh the costs against the benefits. Most of the support you’d expect from a realtor is already provided by the NHC, who is uniquely qualified to guide you through the new construction process.
Using a realtor for new construction may seem like a helpful option, but in most cases, it’s unnecessary and costly. New Home Consultants offer everything you need to navigate the process smoothly, without the added expense of realtor commissions. By working directly with an NHC, you’ll save money, simplify your experience, and benefit from their deep expertise in the builder’s offerings. For a seamless new home journey, skip the realtor and go straight to the source.