Should I use a realtor for a new build? The simple answer is yes. When you visit a new build model home, the person you speak with about the homes in the development work directly for the builder. They have a monthly sales target to meet, and it’s not in your best interest to purchase directly from them. There are many reasons you should hire your own realtor to accompany you to the sales office when purchasing a new build.

A Realtors Perspective


One of the biggest reasons to take a realtor with you to a sales office is their ability to see the whole picture. The builder’s sales representative will not advise you on any of the negatives about the lot you choose. A realtor can advise you which lots would have a higher resale value. A realtor can also help you think about future development around your new build location. A realtor can also assist you through the entire process of purchasing a new build. Realtors can also advise you on the best time of year and month to buy a new build. Realtors can also research and find you the best new build incentives.

The Price of A New Build

Typically a builder will not lower the price of a new build. You don’t have the same negotiating power as with a resale home. Builders base their price on:

  • Location
  • Lot Size
  • Labour Costs
  • Cost of Building Materials
  • Cost of the land
  • Upgrades
  • Market Conditions
  • Builder Impact Fees

The builder is only interested in their profit margin and is not emotionally attached to the home. A realtor can advise you on the current market value in the area and ensure you are not overpaying for the new build. They can also advise you on the best choice for the best return.

Ensure Builder Promises Are On Paper

When you visit a new build sales center the builders representative will say almost anything to get you to buy one of their homes in an effort to meet their monthly sales quota. Verbal promises mean nothing, if a sales representative promises you certain things always get it in writing. Your realtor can help you mitigate this by sending follow up emails to ensure everything is in writing.

Upgrades And Associated Costs

A builder’s model home is almost always filled with many upgrades. The model you see is not what you get for the base purchase price. They decorate the model home to the nines to make you fall in love with it. When you visit the model home with your realtor, they will ask for the base price of the home before you tour the model home. This will be a more realistic price for the home. The realtor can also point out which are the upgraded features in the home. The many upgrades that have been added to the model home can cost thousands of dollars above the base price of the home.

Builder Reputation

It’s one thing to visit a model home and fall in love with it, however, the most important thing about any new build home is the builder’s reputation. Not all builders have a good reputation and some may have been previously sued. Your realtor should have a good idea regarding the reputation of the builder and can advise you accordingly.

Let Your Realtor Do Your Leg Work

realtor Leisure Relax Legs

There are so many new builds on the market. You could literally spend days and even weeks visiting all the new builds that are available. Let your realtor do your leg work for you. Advise your realtor of the location you are interested in, the price you are willing to pay, and a preferred builder you would like. Your realtor can do all of this for you and provide you with a list of model homes you can visit.

Realtors For New Builds Are a Free Service

Many people are not aware of the fact that realtors that assist you with new builds are a free service to you. Most builders will pay the realtors commission on the sale of the new build. A sale is a sale. However, the realtor may not receive the same commission rate as if they were selling a resale home. Builders usually pay a lower commission to realtors for the sale of the home.

Important Factors

As you can see there are many advantages to having a realtor with you when you are purchasing a new build. It is important to choose a builder with a good reputation but is also as important to choose a realtor with a good reputation. Keep in mind there is no realtor certification for new builds or realtor courses available for new builds. Research realtors that have a lot of experience dealing with new builds.

Always remember to take your realtor with you for your first initial visit to a builder’s sales office. If your realtor doesn’t accompany you on your first visit when you register with the builder they cannot attend any future visits or represent you. A good realtor will accompany you on all future visits to the sales centre and pre-inspection visits to the new build. A good realtor will also always have your best interests at heart.

Be cognizant that not all builder basic standard new builds are the same. Some builders may have basic standard options that other builders may consider an upgrade.


Buyer Misconceptions

Many people who choose to buy a new build are under the impression that builders will reduce the price of the new build by the amount of the commission that would be paid to a realtor. This is not the case. Builders almost never reduce the price of their homes. Builders do not want to set a precedent for future buyers by reducing the price of their homes.


Bottom Line

You should always take a realtor experienced with newly constructed homes with you to all your initial visits to a builders sales center. The realtor can direct and assist you through the entire process of buying a new build as it is quite different than purchasing a resale home.

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