Contact a Realtor before meeting with a new home builder sales agent
When navigating the real estate market, particularly in new construction, it's crucial to understand the differences between builders' agents and traditional realtors. Both play important roles, but their priorities, responsibilities, and how they serve buyers can differ significantly. Below is a comprehensive overview of their distinct functions to help you make an informed decision during your home-buying journey.
1. Definition of Roles
Builders' Agents: Builders' agents are sales representatives who work directly for home builders or development companies. Their main responsibility is to sell the homes the builder constructs, often located on-site at the model home or development community.
Realtors: Realtors, licensed real estate professionals who may represent buyers or sellers, operate independently or through brokerage firms. They have a fiduciary duty to act in the best interests of their clients, regardless of whether they're working with existing homes, foreclosures, or new constructions.
2.Fiduciary Duty
Builders' Agents: Since builders' agents work for the builder, their primary allegiance lies with the builder's interests. Their goal is to maximize sales for the construction company and minimize costs, which can impact the negotiations and offers presented to buyers.
Realtors: Realtors owe their clients (the buyers) a fiduciary duty, meaning they are legally obligated to act in the buyers' best interests. This includes providing unbiased advice, negotiating the best deal, and ensuring buyers are well-informed throughout the process.
3.Negotiation Power
Builders' Agents: While builders' agents can provide information about available incentives or promotions, they typically have limited room for negotiation. Many builders set standard prices and policies on upgrades, leaving little flexibility from the sales agent’s side.
Realtors: Realtors often possess negotiation skills that can benefit buyers significantly, helping to push for better pricing, additional upgrades, or concessions. This adeptness in negotiation allows them to advocate effectively for their clients.
4.Market Knowledge
Builders' Agents: Builders' agents are knowledgeable about the builder's current projects and specific offerings, including floor plans, available lots, and community features. However, they may lack broader real estate market insights outside their development.
Realtors: In contrast, realtors typically have a more comprehensive understanding of the local housing market. They can provide critical insights not only about the builder's homes but also about comparable properties, neighborhood trends, and resale values of new constructions.
5.Contractual Expertise
Builders' Agents: Builders’ agents primarily focus on contracts provided by the builder, which may favor the builder’s interests. They can walk through the details of these contracts but might not highlight any aspects that could disadvantage the buyer.
Realtors: Realtors are trained to interpret complex real estate contracts, identify potential pitfalls, and help navigate the terms and conditions with clarity, ensuring that the buyer fully understands what they are signing. This includes scrutinizing the build timelines, warranty assurances, and contingencies.
6.Support After Sales
Builders' Agents: After the sale, builders’ agents often step back since their obligation ends once the sale is finalized. They may assist with immediate questions regarding the completed home but typically will not engage further unless issues arise related to the builder itself.
Realtors: Many realtors continue to offer support after the purchase. Whether it's coordinating with builders regarding warranty claims or addressing ongoing concerns related to home inspections, realtors usually provide valuable assistance even beyond closing.
