Verrado has 12+ distinct builders.

In general, builders’ model homes are staffed by agents who work directly for, are paid by and represent the builder. A buyer may want to consider a real estate agent who represents them and looks after their best interests. Keep in mind that most builders will require that the real estate agent accompany and register the buyer on their first visit to the builder’s model home. Make sure your buyer's agent accompanies you so you don't lose the opportunity to have your own representation.

A common misconception

A common misconception when purchasing new construction is that you don’t need an agent. Let me explain: When you visit their open houses, you are greeted by a friendly office "salesperson" that is paid by and represents the builder's interest who tells you how spectacular the homes they are building are. They are happy to take you on a tour of the mega-upgraded models, and they are specially trained to convince you to buy one of their homes. They're actually quite good.

Often the model home is a high-end version of the standard home. It is the builder’s showcase home and a way for the builder to show off many of the stellar upgrades it can offer. The builder hopes a buyer will like these upgrades and ultimately add them to the purchase of the home. In general, these upgrades have good profit margins for the builder.

Price comparison

A buyer’s agent will help you do a better job of determining price comparisons. A buyer’s agent is experienced in preparing a Comparable Market Analysis which is a similar process to comparing the best value in new home sites. Wouldn't you like to know how much the other builders homes sold for? Wouldn't you like to know if the pre-owned houses down the street are nicer, larger, and are selling for less per square foot?

In addition, a buyer’s agent will help you compare New Construction vs. Existing Homes – The alternative continues to exist to buy a pre-owned home and measure the value vs. building brand new and putting in shrubs, blinds, landscape etc.

Even little things like what builder options will result in the best resale value a buyer's agent can help you with. They've talked to many buyers and know what people are looking for in your area. Should you install granite countertops and a Wolf range? Is this over upgrading for your area, or will subsequent buyers be turned off by your choices come resale time?

Builders are not like regular sellers.

They are not emotionally attached to the property. They make decisions based on what is best for their bottom line. The majority of builders will have lengthy, attorney-written, intimidating-looking purchase agreements that cover all the pertinent details of the new-home purchase. Ensure you read through and are familiar with the purchase agreement. A good buyer’s agent is trained to get all terms in writing before closing. Sometimes even the very nicest builder makes verbal promises that later become a point of contention. An experienced buyer’s agent is conditioned and trained to “put it in writing” even though at the time it doesn’t seem necessary.

Using the builder's lender & escrow

Builder’s love it when a buyer uses their preferred lender. In most cases, they will even offer some enticing incentives to ensure a buyer chooses the preferred lender. Even so, a buyer should not just automatically use this lender. They should shop around and find the best loan for them, not for the builder. Buyer’s agents will advocate giving you freedom of Lender and Title Company. Some builders would have the buyer believe they are confined to the builder’s title company or lender or buyer risks making a mistake if they don’t go with builders list. A buyer’s agent is helpful in independently evaluating alternatives.

A buyer’s agent

A buyer's agent saves buyer time and is expert while buyer can focus on their own family and work areas of their own expertise. Home purchase and construction can be a very involved complicated process with loans, title and survey issues, financial concerns etc.

Some new-home buyers think that if they do not use an agent for their purchase, the builder will reduce the price of the home by the amount of the commission. For the most part, this cannot be further from the reality. Builders do not want to reduce their prices because it sets the comparison price for future home sales in that neighborhood. Builders instead add the commissions paid to a buyer’s agent into the marketing budgets of the homes. If a buyer goes to a new-home builder without a real estate agent, either the builder’s agent or the builder will pocket that money.

Costs no extra

A buyer’s agent normally costs you nothing extra as the builder has allocated a sales commission to be paid to a buyer’s agent as most consumers are represented for the above reasons. When a buyer does not use a buyer’s agent, the builder either pays their sales representative a higher commission or pockets the savings.

It makes perfect sense

If the builder has a salaried employee to advocate for them, it makes perfect sense to balance the equation with a buyer’s advocate working for your interests.

Should you consider a buyer's agent to represent you when purchasing new construction?

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