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I want to buy a new home but not sure if I need an agent. The sales office told me that it doesn’t matter either way and that it won’t affect the deal because this particular builder does not pay commission to buyer agent. They said that whatever our agent gets paid is between us and our agent. I contacted an agent who told me that this is not true and the builder has to pay. who should I beleive?

8 Thoughts on Do I need an agent when buying a new home from a builder?
  1. Reply
    KRISH
    December 30, 2012 at 1:30 pm

    I think when once u hire an agent both parties pay the agent but still what is the rule i ur country has to be seen so better get some more information about this

  2. Reply
    Rudy
    December 30, 2012 at 2:06 pm

    Why do you even what a agent.

    No really what do you expect them to do for you?

    1. It’s a new home so you get X amount of warranty. Read the warranty so you understand what is covered and what is not.

    2. You will have a walk through, to point our any problems that need to be fixed before closing.

    3. Read the online reviews of this builder and see if there have been problems. Talk to the builder about any problems you find.

  3. Reply
    Craig B
    December 30, 2012 at 2:47 pm

    You need to have representation. Having an agent on our side is critical. The builder could easily have you running in circles and will never lower the price just because he is a nice guy. Get your self an agent. It is well worth it.

  4. Reply
    Richard Z
    December 30, 2012 at 3:23 pm

    Believe the Builder, it is his house, he can sell it by owner if he wants. Do not contract an agent for this transaction. If you need advice, hire an attorney for the closing, it is actually cheaper believe it or not.

  5. Reply
    Cristina Callegari
    December 30, 2012 at 3:33 pm

    They are both right, and both wrong. You must see if the builder’s property is listed on your local MLS. If he is not listed he/she doesn’t have to pay an agent directly. However, you can build the agent’s commission into your offer. For example, if the home’s asking price is $ 300K, you could offer $ 290K with a 3% commission (or whatever number you and your agent agree to) built into the offer price with the agent. Or, you could offer the seller the price minus the commission to the agent, and pay the agent directly at closing. You should check with your local DOS. As every state does have different regulations.

  6. Reply
    beagle
    December 30, 2012 at 3:41 pm

    In Canada you do not need an agent when buying a home, new or old. I imagine it works the same way in the U.S.

    If the builder is selling the home “for sale by owner or builder” then you do not need to have an agent to represent your interests.

    If the builder has an agent selling the home then you still do not need to have your own agent. Be aware that the agent representing the builder is doing just that. He is protecting the seller’s interests, not yours.

    I’ve not heard of seller’s not having to pay commission. I can’t see how they would think that what your agent gets paid is between you and your agent. It is not you who is paying the commission. But no matter, someone is making money on the sale of the home.

    Remember that it is the agent you hire that will protect your interests. His reward will be his share of any commissions paid on the sale of the home.

    While there is not a lot of wiggle room when it comes to the sale of new homes, an agent representing you can be an invaluable source of information and guidance. He/she can research comparable new home prices, give you an idea of what the neighborhood is like, tell you the “downside” of purchasing a particular home in a particular location and many other pieces of information. And at no expense to you.

  7. Reply
    tommy trump
    December 30, 2012 at 3:45 pm

    no agent needed. just get pre-approved from whatever lmortgage ender you are using.

  8. Reply
    ben l
    December 30, 2012 at 3:57 pm

    get and agent!! get one that has dealt with many new builds!!!

    it wont cost you a penny

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