{"id":32461,"date":"2022-07-29T13:28:54","date_gmt":"2022-07-29T20:28:54","guid":{"rendered":"https:\/\/www.homelight.com\/blog\/?p=32461"},"modified":"2022-08-04T13:30:13","modified_gmt":"2022-08-04T20:30:13","slug":"buyer-buying-new-construction-without-a-realtor","status":"publish","type":"post","link":"https:\/\/www.homelight.com\/blog\/buyer-buying-new-construction-without-a-realtor\/","title":{"rendered":"Your Guide to Buying New Construction Without a Real Estate Agent"},"content":{"rendered":"

In 2022, 15% of homebuyers<\/a> bought newly constructed homes. Of these buyers, 36% said they purchased new construction because they wanted to avoid home renovations<\/a> and issues with plumbing and electricity.<\/p>\n

Building a home from the ground up, or purchasing a newly constructed home with freshly painted walls, pristine floors, and brand-new plumbing and electricity appeals to new and seasoned homeowners alike. If you’re considering purchasing new construction, perhaps you\u2019ve toyed with the idea of buying without a real estate agent.<\/p>\n

Maybe you already have a builder in mind and you\u2019ve found a neighborhood you love. What\u2019s there left for a real estate agent to do?<\/p>\n

Brad Gore<\/a>, a real estate agent who has building experience and works largely in residential sales, new construction, and commercial property in greater Taney County, Missouri<\/a>, advises buyers who are considering buying new construction without a Realtor\u00ae to proceed with caution.<\/p>\n

\u201cWithout a Realtor\u00ae, or someone who knows the market and what similar new construction homes in the area are going for, you\u2019re in a situation where you don\u2019t have all the right information that will help you negotiate the best price for you or a price that’s market-based,” advises Gore.<\/p>\n

In this post, we\u2019ll share more advice from Gore about buying new construction, lay out a step-by-step plan for purchasing a newly built home, and dive into considerations of purchasing new construction without a real estate agent.<\/p>\n

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Can you purchase new construction without a real estate agent?<\/h2>\n

You can, but having an agent who has experience working with new construction homes can be a valuable asset.<\/p>\n

A real estate agent can help you avoid many of the common pitfalls that can arise when purchasing a new construction home. They\u2019ll have a pulse on which builders are reputable in the area, they can help negotiate<\/a> fees and construction details like paint colors, trims, and appliances, and they can help you schedule an inspection and wade through real estate contracts.<\/p>\n

It\u2019s also standard for the seller (in this situation the builder) to pay both the builder\u2019s agent and buyer’s agent commissions. So, if you do choose to work with an agent, you won\u2019t typically be required to pay that agent a commission out of pocket.<\/p>\n

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What are my options if I don\u2019t hire a real estate agent?<\/h2>\n

If you decide not to work with a real estate agent, there are three ways you can go about purchasing new construction.<\/p>\n

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Work directly with the builder\u2019s agent<\/h3>\n

In 2021, 7% of homebuyers<\/a> bought directly from a builder\u2019s agent or builder. Keep in mind that a builder\u2019s agent is called a \u2018builder\u2019s agent\u2019 for a reason. They\u2019ve been hired by the builder and are therefore going to have the builder’s best interest in mind.<\/p>\n

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Hire a real estate attorney<\/h3>\n

A real estate attorney can help you navigate the homebuying process, tie up necessary paperwork when finalizing a home sale, and clarify any gray areas in contracts. Your attorney, however, will not aid in negotiations or help you choose upgrades.<\/p>\n

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Represent yourself<\/h3>\n

When representing yourself in a real estate transaction, you\u2019ll take charge of the homebuying process<\/a>, start to finish: choosing a builder, selecting a home, finding a lender, scheduling an inspection, and navigating the closing process.<\/p>\n

\n The first thing we tell people when they\u2019re looking at builders is don\u2019t ask them how long the builder has been building homes. I can say I\u2019ve been building homes for twenty years, but what does that really tell you? Instead, ask them: \u2018How many homes have you built?\u2019<\/q>\n <\/blockquote>\n <\/div><\/div><\/div><\/section>\n
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Steps to buying new construction without a real estate agent<\/h2>\n
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1. Get preapproved for a mortgage<\/h3>\n

Many builders offer in-house financing options, typically with incentives. But as tempting as their financing options may be, it can pay off to shop around with other lenders<\/a> before making any decisions.<\/p>\n

There are many different ways to finance new construction, and your loan options can vary depending on the type of new construction you\u2019re purchasing. Here\u2019s a look at popular loan options:<\/p>\n