Builders tell me 8/10 of their buyers are working with a real estate agent, so who pays the Buyers real estate agent fees. The Builder pays the agents fees when a buyer utilizes an agent.
So if you don’t work with an agent can you save money? This is a great question! The answer is typically no. The reason? Builders can’t easily discount the price of their homes, because the last sale in the neighborhood is the best comparable sale for the next sale in the neighborhood. Effectively, the builder is making their next sale worth less an less money if they provide the buyer with a discount. In addition, the people who have already purchased in the neighborhood sees their home values decrease when a builder reduces their sales price.
So should you use a Realtor when buying a new construction home? Yep…if you don’t the Builder will make more money…and you’ll be paying the same amount to be unrepresented by a professional.
Hope that helps!
