Why You Need a Buyer's Agent, Even With New Construction

It's easy to go into a new construction model home and start signing on the dotted line - the salesperson makes you feel good and makes the process really easy. But who is representing your interests as the buyer?

 

Many buyers think that by not having a buyer's agent, they are going to save money on the sale price, because the seller doesn't have to pay another agent. Unfortunately, that's just not the truth, especially in new construction. The way that our contracts work, the listing agreement may allow the listing agent to receive that commission as well - so they are just fine allowing you to continue without representation!

 

I've been doing a lot of work with new construction clients, and this is the story of how I recently saved my client $625 and why you need a buyer's agent - always! My client went under contract several months ago and the construction is scheduled to be completed in October. 

 

Just last week, at the end of July, my client received an addendum via DocuSign indicating that he would pay an additional $625 towards the HOA costs. This is very common in new construction communities - it's called a Capital Contribution. Some larger resale communities have it as well. The salesperson sent us an email letting us know that they had made a mistake in the contract and needed this addendum to be signed.

 

I immediately contacted my client to tell them NOT to sign the document. He wasn't sure why, so I explained to him that he is not obligated to pay that fee because it wasn't advertised in the listing, and if he does not agree to it, it cannot be added to the contract.

 

I reached out to the salesperson letting her know that he would not be paying the fee. Unsurprisingly, they pushed back. As I explained to them, my client would not be paying a fee that he hadn't agreed to just because they made a mistake. After some back and forth, they agreed he would not have to pay it.

 

My client is a great guy and is just looking forward to the home being completed. I have no doubt that if I had not advised him not to sign the addendum, he would have signed and went on his way. My job is to represent his interests, and that includes saving him money and making sure the contract is adhered to. 

 

New construction can be tricky, and many people go in and buy without representation. This is the largest purchase of your life thus far - let's make sure you are protected!