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- A buyer's agent tends to make builders more accountable – in addition, if a builder uses licensed agents as their sales representatives who are members of the National Association of Realtors - they must subscribe to the Realtor Code of Ethics. If the builder has a professional to advocate for them, it makes perfect sense to balance the equation with a buyer's advocate working for your interests.
- Negotiable on Deposits – This author has seen situations where the buyer is securing special low down payment financing whereby they are good borrowers and good buyers but are low on funds. Often the buyer's agent can assist by negotiating a smaller required deposit to start construction.
- Punch List – (There are many small builders that are like your 10 year old son that you have to ask 10 times and plead and threaten to get his muddy tennis shoes out of the kitchen.) This author has frequently been the catalyst to complete what to the builder may be minor but to the buyer may be major. It can be annoying when something just doesn't work properly. Some builders will try to talk you out of the repair or just wear out your patience. In one such case the builder lived across the street and wouldn't come back to finish items after closing. Buyer felt at a disadvantage because they wanted to stay on good terms with neighbors.
- Defects – Some builders will try to get buyer to accept or compromise. It may be difficult to stand up to a builder who thinks they have you over a barrel. You have to close and get out of your present residence. Sometimes the less the other party knows about you, the buyer, the better negotiation power.
- Builder mistakes - oops – (The builder cut the board 2x's and its still too short.) How many times have we seen no jet tub where there should be one, color is wrong, agreed upon modifications didn't get picked up and they try to cover themselves or deny blame. It is difficult for buyers on their own to stand up for what needs to be corrected.
- Lot not available so must go to premium lot – This author recently had buyer's contract on a lot to build a home with 3 car garage. After 15 days the builder said sorry this lot will not hold a 3 car so you have to pick another lot. The builder's representative said the only lot left has a $5,000 premium and you are under contract. This author clarified the contract applies to a specific house on a specific lot and if builder can't deliver we are free to go elsewhere. The sales representative insisted builder would not negotiate premium of $5,000 – ultimately, the builder negotiated.
- Help exit – On one recent occasion buyer's agent recommended getting an attorney involved. This author had a new construction where there were serious structural concerns. The builder was in an obvious cover up – buyer's agent took buyer to an attorney who helped put pressure on builder to prepare a Mutual Release with funds returned to buyer.
- A good buyer's agent is trained to get all terms in writing before closing. On another recent occasion the buyer was concerned about the surface water sewer set so low that the back yard had a very steep slope. This buyer's agent was able to get builder to sign a document indicating that builder will raise sewer and level out yard.
- Keep everything in writing – 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.
- A buyer's agent serves as an extra set of ears as a witness at court or arbitration – When the builders sales representative is familiar with all rules, features and prices and it's all new to buyer – it is good to have experienced person on buyer's side listening with buyer and taking notes, a lot of information is verbalized in short period of time.
- Negotiate price or options – Often a buyer is fearful to even try to negotiate. It helps to know the style and background of various builders to better know what to expect.
- Buyer's agents will advocate giving you freedom of Lender and Title Company – Some builders would have the buyer believe they are confined to 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.
- It's often helpful to have an alternative point of view on issues – Sometimes, because of an experience in this area; the buyer needs a reasonable perspective to know what is normal and what is abnormal.
- A buyer's agent will help you do good 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.
- 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. If you have a home to sell before buying new construction, it helps to have experienced person oversee the entire process.
- Buyer's agents generally have a better awareness of builder reputations, personalities and quirks. The real estate community is generally aware of the strengths and weaknesses of various builders. Some build a good home for a good value, but fail on customer satisfaction after the sale. Some are great start to finish. Some have reputations of poor quality workmanship or poor payment of sub-contractors. The more the buyer knows ahead of time, the better.
- The buffer effect of buyer's agent in middle - A tactful skillful buyer's agent serves the same purpose a cartilage between 2 bones at a joint - remove and buffer emotions, frustration in major transaction. A buyer's agent can save a deal and be a peacemaker. Many a transaction was ready to "crash and burn" until a skilled cool headed negotiator brought the parties back together.
- 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.
- Buyer's agent can help as a third party counselor to help determine what is normal standard of practice and what is abnormal. Buyer's agent often serves as level headed buffer to what could be emotion packed issues.
- You wouldn't schedule an African Jungle Excursion without the benefit of a local experienced guide. It helps to have a tour guide who knows the "lay of the land." You never know what's going to lunge out of the foliage. You are caught off guard.
- Generally 1 through 20 is at no additional cost to you. Most builders price buyer's agent compensation in pricing strategy. Most builders have a positive attitude toward licensed agents. They realize that agents are a significant source of new business, especially in tough economic times.
NOTE: Many, many builders are very reputable and mean well. Some have a despicable reputation that precedes them. Simply put, there are two distinct points of view that each deserves a balance in representation so neither party is at a gross disadvantage
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