Buying a Brand New Home - Do You Need Your Own Agent?

Many times buyers that are looking at newequal to" what was ordered by the buyer. Can
homes don't feel the need to have their ownyou imagine a buyer ordering new furniture, and
agent. "The nice people at the community's officethen finding out days before closing that some of
are so helpful," etc. And, yes, they are. However,the finishes in the house aren't going to be what
they work for the builder or the community.they ordered, and if they refuse to close they
They are hired to represent that builder... not themay lose their earnest money, or even more.
buyer. Unless the buyer brings their own agent,Most of the time, the writers of the special
the buyer doesn't have a representative in thestipulations in the contracts are not envisioning
process.these situations. They are trying to protect their
Much of the time, it will be fine. However, oneclients, the builder, from other issues. But, if the
may discover that the contract (other thanlanguage is there it may be exploited.
perhaps a standard Realtor Association contract)In other cases, having a buyers agent might clue
may have a lot of one sided language in it. A fewone in to other aspects of the purchase. Perhaps
examples of this might be cancellation clauses, orthere are other communities that might work as
worthless warranty provisions. One contract thatwell or better for the buyer. One shouldn't expect
I recently dealt with had a provision that allowedthat the community agent will point out those
the builder to cancel the contract for any reasonother new homes. Or knowing what inducements
or without reason and refund the earnest moneyare being offered in other areas. Also, a buyer's
and a small amount for damages... right up toagent will likely recommend an inspection, and
closing. Imagine that a buyer sold their currentpossibly other services that the community agent
residence, and then the day before they are towon't recommend. And don't forget financing.
close on both properties, the builder decides theyMany times the community has special
can get a better price for the house this buyerarrangements with particular finance companies.
has been waiting for over the last eight months.These might not offer the best deal for the
Now they don't have a house to move in to, andbuyer, so having an agent that is tuned in to
the may not have a house to stay in. Anothersome other sources may reveal other options.
phrase that I dealt with allowed the builder toThe bottom line is that being unrepresented isn't a
change the specs of the house being built with nogreat idea, and probably won't save you any
notice. They could substitute materials and finishesmoney.
for others that the builder deemed as "at least