Buying New Construction

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Question

I am looking at buying a townhome, I recently got in touch with a REALTOR® who spent a day showing me a couple of areas. I ended up falling in love with a property that is still in the process of being built. I am now seriously considering making an offer on this place, but I was planning on doing it myself without the Realtor.

Since it is a new build, I figured I could get a better price without using her since they would not have to pay the 3 percent commission. Here is the kicker–the Realtor is my mom’s friend. Would this be “burning bridges” to make an offer without using the Realtor? What do I tell the Realtor? My mom thinks that since she showed me the property I have to use her. I disagree!
– Heather

Answer
Good question! This is a common assumption/mistake that new home buyers tend to make. I have never seen a deal that was better financially because the buyer did not have their own representation. In fact, I have seen deals quite the opposite.

There is much negotiation to be done by your Realtor on your behalf regarding price of the home, upgrades to be included in that price, etc. Certainly you can be sure that the hired home builder’s representatives will not be going to bat for you! Your Realtor is not there with you to just introduce you to the property. There are many obligations that your Realtor has in representing you. They are there with you every step of the way to ensure that your best interests are protected throughout the escrow, and that you receive all the appropriate disclosures regarding the property, the development and the area, so that you can make an informed decision to go forward with the purchase or not once your due diligence timeframe is up.

For example: I always have my new home buyers hire an inspector to inspect the property. Many new home buyers think this is not necessary since it is a new home. I disagree. In my opinion, every home should be inspected before purchase. Ok, now let’s factor in that your Realtor is your mother’s trusted friend. My advice to you is to trust your Realtor and allow her to represent you and negotiate for you. Everything is negotiable, and your Realtor will act as a non-emotional “middle man” for you in order to achieve your goal, and get the home you desire.
– Karen Crystal

Karen Crystal, REALTOR® at Ewing & Associates Sotheby’s International Realty, specializes in estate properties. She brings a unique blend of efficiency, honesty, integrity and business- savvy to her clients.

Nicki & Karen

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