Disadvantage Of Buying Directly From A Builder

Real estate agents representing new home construction buyers

Disadvantages of Buying New Homes from Builder Contracts without a Realtor

Writing the contract with the builder’s sales representative never seems to be a problem with consumers.  The problems usually occur after contract agreement including financing options, and post-closing repair agreements.   

I would like to emphasize how important it is to be represented by a Realtor when buying a new home.  This applies to new home purchasers everywhere.  It is common practice for new home customers to try negotiating with builders directly in the hope of purchasing the home for a discount because they are not represented by a real estate agent, and there isn’t a commission expense to the builder.  Working closely with and selling homes for several builders I can tell you this strategy will not produce a discount on the price of your new home.  Builders cannot reduce the price of a home without it reducing the price of remaining homes to be built in the same subdivision.  If the builder reduces the price of your home, the appraisal value for comparable homes will also drop.  Therefore, no real estate agent = no discount.

If you’re considering the purchase of a new home be smart about it.  Find an experienced Realtor with a background in negotiating builder contracts.  Choose a Realtor that's well established in the community you're looking to buy a home in. They will be to provide you with information the builder  doesn't normally have access to. A local Realtor will have access to the mls with information pertaining to resale and new construction sales that are considered relevant when contemplating whether or not the price and process of a new construction project makes sense for you. The Realtor has the ability to schedule appointments for you to see all homes in the area, allowing you to educate yourself regarding the value of resale vs. new construction, and the quality and craftmanship differences between several different local builders. This is a large investment. You should have an advocate on your side educating you throughout the process. A Realtor can also bring a variety of  valuable resources to you such as mortage broker, home inspector and appraiser reccomendations (Independant of those used by the builder).  

The cost of the agent's commission is built into the offering price by the builder, and walking into a model home without an agent does not give you a bargaining point.  You will not receive a discount through the builder by purchasing a home on your own without an agent.  But you will be on your own through the purchase process.  With the builder paying your agent to represent you it is an unnecessary risk to move forward without representation from an agent whon is experienced in new new construction sales  If you’re considering the purchase of a new home in upstate New York consult me before making your first move.



Regina Tortorella
Windham's Consistent Top Producer
Certified Luxury Property Specialist 
Ranked Within Top 5% Of All CBVG Affiliates Globally

Coldwell Banker Village Green Realty
5383 Main Street
Windham, NY 12496
Phone: (914) 466-0329
Email: Reginattapp@aol.com
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"Regina was a pleasure to work with she had a tremendous working knowledge of the area and respected my time and only brought real buyers to the table I would highly recommend her to anybody!!!" M Turner 01/02/2017
"We are so fortunate to have met and worked with Regina. We had not purchased a home in many years and were nervous clients. Regina answered all of our many questions thoroughly and immediately and guided us with great patience through the process. We ended up with a home we love. Knowledgeable, professional, experienced, kind, patient, resourceful...just a few of the words that come to mind when thinking of our experience with Regina. She is, quite simply, the best, and we recommend her without reservation." 5 STARS Highly likely to recommend 10/27/2016 Bought a Single Family home in 2016 for approximately $775K in Canaan, NY. Ann
Regina was recommended to me by a friend. She was absolutely on point from beginning to end. She was knowledgeable and quick to respond. I would absolutely recommend her, It was an absolute pleasure working with Regina ! 09/01/2016 Cindy Habberstead
Regina went above and beyond to get the deal closed quickly. Very quick to respond and a joy to work with. 03/25/2016 Atossa
"Off the chart performance as a realtor" is how i would describe my experience with Regina Tortorella. My house, bright, airy and magically sited, was also small. Regina let me know she was sure to sell it, but its appeal was for a special buyer. And that was the beginning of our productive collaboration. Trust was the bedrock of our relationship. Her honesty, her obvious desire to obtain the best results for me, her endless knowledge of the market and ability to wear many hats astounded me. I remember one long conversation during which, among other things, she explained to me the intricacies of appraisal, drawing on her own experience as an appraiser. I was agog at her descriptions of criteria in determining the value of a house, how she cited figures and logarithms interspersed with clear language so I could follow. Her personal skills were equally impressive. We often laughed; I sometimes cried, and she understood. Selling a cherished home was not an easy task for me. In the end we sold the house for 93% of asking price...to a landscape designer...a perfect fit for the house. She was more than a realtor...she became a confidante, a friend and a trusted advisor. I am deeply grateful to have had her guidance and help in closing one chapter of my life and opening another. To anyone who has the opportunity to retain her as either buyer's or seller's agent I say...you could not have made a better choice. 1/25/2016 Jeffrey Gould
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