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 got our house sold. It was not the easiest of properties to sell but she got it done. We can not thank her enough. Her suggestions were always knowledgeable and realistic from knowing the local market." 29 Old Rd, Windham, NY 12496 Todd F
"Regina did a great job from recommending specific actions to improve the curb appeal of the house, market analysis and comparables for determining price to helping fairly negotiate the sale. She was a pleasure to work with and very responsive to questions or concerns. I would highly recommend her for any real estate needs in the Windham area." user177526998 158 Buckskin Loop, Windham, NY 12496 Joe
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. Anne in Caanan, NY
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!!!!! Mike Turner
Regina, quite honestly has all the answers. Her knowledge of the area is complete. She is responsive, professional and above all else honorable. Regina listened to what I was looking for and found it for me. I bought my dream vacation home and couldn't have done it without her. I'd recommend no one else. Mike Daniels
I really enjoyed working with Regina to buy my second home upstate. She was efficient, knowledgeable and advocated for my interests with both the mortgage company and the seller. She was dual representation for this sale, but felt she did a great job helping myself and the seller feel confident and honest throughout the process. It was very easy to work with her and I know she did everything she could to make this process easy. Crystalyn 1/13/2017
If you want an experienced and expert agent to help you find a high-end home in the Catskills, Regina is the person for you! Her knowledge of the area and market was critical for us as we made our decision on what and where to buy in Windham. Her help assured an optimal outcome in our home search. Thanks Regina! Mike
We'd had our home listed for a year before we met Regina. She put together a very comprehensive marketing package with professional photography and video and advertising to supplement the usual website listings that everyone else does. Her background and experience helped us at several points along the way and our home was "sold" in 3 1/2 months Lyn
Regina was incredibly knowledgeable, responsive, honest and patient with us during our house hunt (which lasted for almost an entire year). On numerous occasions, she clearly demonstrated her expertise on the market, and was not afraid to give us honest feedback. Regina works hard and is always quick to respond to questions. She is an excellent negotiator - I'm glad she was on our side of the table! Patel
Could not imagine working with any other realtor! From start to finish, Regina could not have been more professional, attentive, motivated and determined to get us desired property at best possible price! And not only is she an amazing realtor, she's also just a genuinely lovely person, which makes the home buying process so much more enjoyable! Regina went above and beyond to meet our expectations
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