Hiring An Agent For A New Construction Purchase

“I’M PURCHASING A NEW CONSTRUCTION HOME AND I’VE BEEN TOLD I SHOULD HAVE HIRED A REAL ESTATE AGENT TO HELP ME WITH THE PROCESS AND NOW IT MAY BE TOO LATE TO BRING IN AN AGENT. IS THIS TRUE?”

Although it’s not the policy of every developer or homebuilder, some will not allow you to bring in a real estate agent if you didn’t list your agent when you first looked at their new construction homes (or models). The reason some developers have this policy is because once a buyer brings in a real estate agent, the developer then must pay the agent’s or brokerage’s commission, which is normally 5-6 percent. However, this isn’t a steadfast rule in every case and with every developer—especially with the current market conditions favoring buyers. As a buyer in this market, you do have a little bit of leverage with sellers (both private sellers and developers) and, conversely, developers and homebuilders are sometimes willing to let you bring a real estate agent into the process after the fact, even if that’s against their normal policy. In other words, it certainly doesn’t hurt to ask if you can bring an agent into the process. In the end, having a real estate agent working on your behalf—whether you’re buying an existing home or a new construction home—is always a good idea. ∆