FAQ - Buying a Newly Constructed Home from a Developer
If we buy a new home from a developer, can we be represented by a buyer's real estate agent?
What will it cost me to be represented by a buyer's real estate agent when buying a new home?
Nothing. The builder or developer will pay us a commission if we have a written agreement to represent you. The fee is built into their budget.
If we are not represented by a buyer's real estate agent, will the developer discount its price to us?
No. If the developer discounted the price to you, the developer would be forced to reduce the price on all homes, including those sold and unsold. The cost to the developer would be prohibitive. Thus, developers don't discount their prices unless the real estate market is in a steep decline. Notwithstanding, we may be able to negotiate upgrades for your home and other benefits such as a premium location and the payment of your closing costs.
What is likely to happen if I go to the developer's sales office before, I engage you to represent us?
If you sign a registration or guest form without disclosing that you are represented by a buyer's real estate agent, they are likely to take the position that you have waived your right to representation. This happens frequently because they don't want you to obtain any advice that will help you. For example, purchase contracts used by developers are not the standard forms used in resale real estate transactions. The contracts are one-sided in favor of the developer. They also generally don't want a buyer's agent to explain the CC&Rs and Public Subdivision Reports.
Does the sales representative in the developer's sales office represent my best interest?
Absolutely not. They represent the developer's best interest. Their job is to maximize the developer's profit and to get you to sign a contract as soon as possible.