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Reasons to Hire a REALTOR When Buying New Home Construction

Do I need to hire a professional real estate agent when buying a new construction home in North Dallas, Texas?

This is one of the biggest questions of most new construction home buyers in North Dallas Texas. They believe that buying a new home directly from the builder’s sales agent will help them save money. However, this is just an illusion. Having a real estate agent by your side assures that your interests are protected throughout the process of searching, construction and closing on a new construction home.

If you are planning to buy a new home, do seek the professional help of a buyer’s agent. Listed below are some of the most significant reasons why:

Understanding the Local New Home Market

A buyer’s agent understands that every real estate market is different. If you hire an experienced agent in Texas, he or she will be aware of all the intricacies of the local market and the new community you are buying in. This, in turn, will help you find the right property in the right neighborhood that is zoned to the right school while supporting all of your other priorities.  

Builder’s Agent Represents the Builder, Not the Buyer

A buyer’s agent is not the same as the builder’s agent. The sales agent working for the builder represents the interests of the seller, and not you. They will help you evaluate your needs and help you choose a property, but everything they do is in support of the builder to sell. It is recommended to hire your own REALTORS®, who can look after your needs and interests. It is only the buyer’s agent who fights hard to protect the interests of the home buyer. When the buyer’s agent works with the builder’s agent on site, they ensure that you get exactly what you contracted for. Additionally, your REALTORS® will continuously represent your interests with the builder (on your behalf) throughout the construction process and guide your real estate purchase in a better way until closing.

It Doesn’t Cost You to Hire a Buyer’s Agent

This is one of the most important reasons to hire a professional buyer’s agent. All of us know that REALTORS® do not provide their services for free. When it comes to buying a home, the builders pay the REALTOR’S® commission, and not the buyer. This makes hiring a buyer’s agent completely free-of-cost for the buyer.

Homebuilders in Texas seek to develop strong relationships with REALTORS® working in their local area. They know that the REALTORS® or agents can help them in promoting their communities. Often this cost is reflected in the price of your new home. If you do not use a real estate agent to represent your purchase, the builder will not pass on their commission savings to you and reduce the price of your future home. With this, it is in your best interest to hire a professional real estate agent, to ensure your interests are always represented.

Negotiation on Your Behalf

Home buyers often hesitate and do not realize the value of having a REALTORS® to support them in a negotiation with the builder. They believe that direct negotiation is not possible, and that the builders’ homes and upgrade options are always fixed in price. This may be true in certain situations, but not always and will vary from builder to builder.

What if you do not like the builder’s construction progress? What if you have an issue with a home’s features? With as many sub-contractors that work on a news home build, mistakes happen. You will want someone to track progress and work with the builder when issues arise. A buyer’s agent is the ideal solution to support your communication with the builder.

Professional REALTORS® have great negotiation skills and have experience understanding the buyers’ needs with a good understanding of what is valuable to the new home builder. The art of understanding both sides makes a REALTOR® the best choice for negotiation. They negotiate your purchase on your behalf, giving maximum priority to your interests.

Recommendations on Upgrades & Improvements

Customization is the biggest advantage of buying a new construction home. Every builder will offer various degree of customization from the basic cosmetic designs to an extreme semi-custom construction modification that could add and make changes to rooms and overall floor plans. You may be able to upgrade your home with electrical, plumbing, lighting fixtures, countertops, carpet choices, and expanded room additions. However, without proper guidance, you may spend your money on several upgrades and improvement that are costly at the time of selling. Your REALTORS® will help you prevent spending your money on home upgrades from a builder that can be done later at a forth of the price.

Generally, the builder upgrades recommended by the REALTORS® are the ones that are very difficult to do after the home is built and/or offer the highest potential return on investment. Also, buyer’s agents can be great design consultants to support the pro’s and con’s when considering across multiple upgrade options. They can suggest modifications to the builder’s standard plan, to create a better version of the construction plan to support your lifestyle.

Inspections and Contingencies

A newly constructed home does not require inspections like a resale home, but an inspection should be performed throughout the building process. A great REALTOR® will recommend what inspections are essential in a new home and the nuances of what is important based on the builder. For example, if the home is built using a septic system, the agent recommends the buyer to include the contingency of septic inspection.

A new home should come with a warranty and typically the warranty will cover entire home for the first year. I highly recommends that before the 1st year is up that you have a professional inspection done in the last month of the 1st year to ensure everything is sound. Foundation and Roof’s will typically come with a 5-10-year warranty.

Not inspecting a new home can lead to serious repercussions, once you move-in and well after.

Paperwork Galore 

A buyer’s agent acts as a fiduciary when you’re buying a new construction home. They are focused on your interests and not the builders. The process of purchasing a new construction property goes through a lot of paperwork formalities. Duly filling all the documents can be very confusing and different from a resale home purchase contract. A REALTOR® will track and ensure all the paperwork formalities are completed without any added stress. The agent will review the contract you sign, verify all the clauses and upgrades mentioned in the contract and check if your needs are getting fulfilled. In case of any confusion or issue, as your representative, the agent will talk to the builder on your behalf.

The agent may also recommend a real estate attorney to guard you against any complications if the buying process includes extensive customization and clauses outside the scope of a traditional new construction contract. The role of an attorney is to create visibility to the contract that may include additional terms and conditions to the original contract for the buyer’s protection.

Keep in mind that a standard new home purchase contracts offered by the builders favor the builder which is another reason for REALTORS® support. Adding an addendum to protect the interests of the buyer. the need for an attorney will be at the complete discretion of the buyer.

Mortgage Financing Considerations

With knowledge and experience about the new construction market, a great buyer’s agents should be aware of available financing options and lenders. You can count on their expertise if you are looking for a lender to finance your new construction purchase. It is always recommended to look for a lender that works with new construction builders and is aware of the process. In most cases your selected builder will have their own designated lender who will offer builder upgrade incentives if you use them. Typically, this is done with a builder credit that can be applied to your home upgrades.

An experienced real estate agent can help you qualify the builder’s lender and other 3rd party loan providers, so you are able to compare which is the best loan package, not just for closing, but for the future. The average home loan is kept for 6-8 years before refinancing, but with today’s low mortgage rates that average time will be likely in place for the duration of your ownership. When considering a loan for that duration of time you need to evaluate all contingencies before making a decision.

Your Representative Throughout the Process

Finding and qualifying and comparing reputable builders in the area can be a complicated process.  However, you may pick the community first and the builder second and today many master planned communities offer more than one builder option.  The builder’s agents and other professionals often take undue advantage of the buyers’ inexperience. The builder’s employees are doing their jobs on behalf of the builder who is in the business to make money by selling homes to you as a new home buyer. Again, hiring a REALTORS® to support your new construction purchase can help protect your investment while offering a professional that is always looking out for your best interests.

A professional like Noah Gamer, will be there to support you with key decisions as they arise to help you purchase the right home, witha great builder, in a community with great schools and local amenities. He will help you review highly reputed and trusted builders in the local market to ensure you are investing in a great property. A good agent will help you filter all the builder salesmanship and marketing information into valuable facts, so you enter into a purchase contract with all the information available to you.

Considering the Texas REALTORS®, you Hire

By now, you must have understood the reasons to hire a professional buyer’s agent when buying a new construction home. It’s time to choose the right agent to represent you.

Your Realtor with New Home Construction Experience

Knowing about the REALTORS®’s new home construction experience is very important. An experienced REALTOR® understands how to handle different types of transactions. He or she also represents the buyer’s interests in the best possible manner.

Noah Gamer has represented many new home buyers across 3 states with first-time, repeat and investors. In addition, Noah has personally purchased 4 new construction homes over the past 20 years, acted as a general contractor in many home remodels and understands the pitfalls and opportunities to enhance the building experience. The combination of these experiences enables him to share his knowledge with first time buyers and investors alike.

If you decide to purchase a new construction home, make sure you hire a buyer’s agent to represent you. Buying a new home is probably the biggest transaction of one’s life. Your agent will work with you to protect your interests, negotiate the deal on your behalf, while saving you money and avoid any unforeseen stressful situation. Hiring a professional REALTOR®, like Noah Gamer and Gamer Real Estate Group is indeed the best way to find your dream home.

Noah Gamer and The GAMER Real Estate Group is here to support your interests, so contact us today to learn more about how we can help you.

Below are a few new homes for sale in the surrounding North Dallas Area

New Construction Homes: Allen | Colleyville | Celina | Frisco | Little Elm | McKinney | Plano | Prosper | Southlake August 7, 2020
Avg. DOM
Avg. $ / Sq.Ft.
Med. List Price
1285 Properties
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Information is deemed reliable, but is not guaranteed accurate by the MLS or NTREIS. The information being provided is for the consumer's personal, non-commercial use, and may not be reproduced, redistributed or used for any purpose other than to identify prospective properties consumers may be interested in purchasing. Real estate listings held by brokerage firms other than Keller Williams Realty are marked with the NTREIS IDX logo and information about them includes the name of the listing brokerage.

NTREIS data last updated August 7, 2020.

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