New Construction

Are you thinking of buying something brand new? If so, this article may be very helpful for you. New construction is a popular choice for many people. New construction consists of condos, townhomes, PUD's (planned unit developments). Most of time builders will have a "model home" or a "sales office." If you are considering buying new construction and want to be represented and protected, FIRST talk to your real estate agent; do NOT go to the model home without first talking to your agent. Most of the time (depending on the builder) if you do not have a real estate agent with you, the "model home agent" (the builders agent) will have you fill out a form with your information. Once they have this information, they are really under little or no obligation to pay your real estate agent.
I am currently working with a client that went into a new construction site and told the "model home" agent that they currently didn't have an agent, but that they wanted one and wanted to be represented. The "model home" agent said "that's fine" and had them fill out a information sheet. A couple days later they called me and said "Caleb, we want you to represent us on this new home." I asked if they had filled out any paperwork with the builders agent; they told me they had. I basically said I will see what I can do and sure enough the other agent isn't going to work with us.
Potential buyers need to know that the "model home" agent is working for the builder. They have a legal obligation to get the builder the most money. They also are looking out for themselves; they obviously want to get paid the most money. Usually for new construction if a buyer comes in and doesn't have an agent and ends up buying a home/townhome/condo/etc the "model home" agent will receive an extra 1%. The agent really has no obligation to you.
If you are looking at buying new construction make sure you talk to your agent. Have your agent give you a stack of business cards and if you ever go to a "new construction site," give the model home agent a business card of your agents and ask them "do I need to come back with my agent before we look at this subdivison" Your agent will be able to get you the best deal! Plus, you don't pay your agent anything to have them represent you. If you have any questions about new construction please feel free to give me a call