Why Should You Use a Realtor instead of a Builder Sales Agent?

Simple. If you hire an exclusive Buyer’s Agent to represent your best interests, you will have representation. If you work with a builder’s sales agent, in my opinion, you are on your own.

Buyers – educate yourselves about Buyer Agency and Dual Agency. Ask yourself – do you want someone looking out solely for your interests, someone looking out for the builder’s or somebody purportedly “representing” both sides?

(Thanks to the person in Las Vegas who came to my site searching for this answer)

I mentioned this a few weeks ago as well.

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  1. Tony Arko February 22, 2008 at 09:15

    If you were on trial for murder, would you defend yourself? Yet buyers choose to do this when they make what could possibly be their largest financial decision ever. The builders should be forced to make every potential buyer sign a document that says they give up all their rights if they don’t use an agent. That is pretty much what happens.

  2. Joe Vita February 22, 2008 at 16:36

    Could it be that many in the public are confused about the real nature and true advantages of buyer agency because so many start out with a buyer agency relationship and wind up in either a dual or designated agency situation? They get robbed of the experience of having an advocate and aren’t aware of it at the time. They may never become aware of it unless they have an unhappy experience which might cloud their perception buyer agency.

    What will it take for the majority of consumers to appreciate and seek out true buyer agents?
    I don’t believe this will happen unless and until more agents voluntarily give up listing properties and become exclusive buyer agents.
    That may take some guts to do but it can be very rewarding both financially and professionally.
    I know because I’ve done it and am having more satisfaction in my career over the last 5 years or so than in the prior 25.

    Plus there are some great professional services that can be offered to former buyer clients when it comes time for them to sell so that their best interest are properly addressed and they aren’t lost to us as future revenue streams.

    Word will eventually get around among buying consumers about which agents to seek out and what type of agency is preferrable but it will take time and an accumuation of shared, rewarding experiences in each market to accomplish this. Watch for the status of the real estate professional to improve significantly in the court of public opinion should buyer and seller agency become specialties that are not, as a matter of course, practiced by the same agent in the same transaction.
    Watch for the number of licensees to drop over time as the business makes more professional demands on those willing to adjust.

    Things will change…they always to. Hopefully, for the better.

  3. Jonathan Dalton February 22, 2008 at 18:58

    I’ve written about this as well. But what I’ve also seen is buyers who then weaken their negotiating position (and neuter me simultaneously) by going to the builder to negotiate along the way. It’s hard to be effective if I’m not a part of all conversations.

  4. Jim Duncan February 22, 2008 at 19:51

    It disturbs me that so many new construction developments are “Exclusively Marketed By” and as such lead people to believe (I know, you can only protect people from themselves so much …) that they can only go directly to that Realtor/builder.

    Jonathan –

    Shoot, you’ve written about this better than most. I figure if enough of us educate the public (and other Realtors) maybe eventually we can effect positive change.

    Joe –

    Thanks again for the great insight.

  5. Port Orange Condo February 25, 2008 at 12:51

    The builders agent represents the builder not you. Always have a real estate agent they can best guide you and represent you.

  6. Port Orange Juice February 26, 2008 at 08:58

    We represent clients with new construction as well as resale homes. We don’t just walk the buyer into the builder’s sales office and walk away with a commission. We help OUR BUYERS through the entire process from construction to closing.In addition, we can deal with any unexpected issues that arise before closing.
    You always want to have representation at a closing and have your Real Estate Agent preview your HUD statement with you.. (this is the statement that gives you a breakdown of all charges and what you (the buyer)…and the builder are paying).

  7. Pingback: Is Dual Agency in the public’s best interest? Part 1 of 2 | VARbuzz

  8. Linda April 1, 2008 at 18:46

    When I bought my place, my “buyer’s agent” ripped me off, and when I sold it, the buyer’s “Buyer’s agent” tried to rip her off.

    I had to wait for him to leave to disclose some of the problems to the buyer.

    In both cases, the buyer’s and seller’s agents were working for the same broker.

  9. Pingback: Homebuyers – Caution on Radon, Builders’ Reps and No Representation | RealCentralVA.com

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