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Why Use a Realtor for New Construction?

When you shop new construction in a pre-planned development, you may be tempted to think you don’t need a Realtor.  After all, you can drive over there anytime the model home is open, talk to the sales representative, and even choose models and finishes, all without a Realtor’s assistance.  So why would you need one, you may ask?


When you purchase a home, you want someone who can negotiate on your behalf.  Not just on price, but someone who knows the pitfalls and opportunities in the situation.  Are there upgrades available for free, are there hidden fees – your Realtor will be aware of what is possible and probable.  A sales representative for the builder isn’t allowed to lie to you, but they also don’t have to answer questions you don’t ask.  Having a knowledgeable professional on your team can make a big difference in your transaction.  Your Realtor will know how sales have been at the development, what pricing is appropriate for the area, and what other builders in the area are offering in comparison.  Best of all, your Realtor will do this with no cost to you – they are paid by the seller, in this case, the builder.

Using a Realtor Doesn’t Cost You Anything

Some people think they can negotiate for the Realtor’s commission to be taken off the price if they don’t use one.  That’s not the case – listing agreements pay commission to the listing agent and then specify how much of that will be shared with a buyer’s representative.  If there is no buyer’s representative, they are still contractually bound to pay the entire amount to the listing agent.  It doesn’t get applied as a discount to the purchaser.

You won’t pay less without a Realtor, but you certainly may pay more.  The builder’s rep has sales goals to reach, and they don’t place the customer’s needs and protection first.  Realtors operating as buyers representatives are legally bound to put their client’s interests first, as per the Tennessee Realtors Residential Listing Agreement.  A typical home buyer has limited experience with the problems that can happen in a real estate transaction. It doesn’t take much for a deal to fall apart. Your Realtor is the one person completely on your side in the deal, and she is also the one with the ability to navigate the pitfalls and problems a typical transaction encounters.  She will have many professional connections you can call on to answer specific, technical questions too, and her relationships with these vendors will naturally extend to her client.

Are you thinking of buying a new construction home?  Give us a call, and we can talk about your options and some first steps in the process.

James Crawford

James Crawford

Realtor, Home Buyer Specialist

call direct 615) 482-5244
[email protected]