So you are thinking about moving and you are seriously considering buying a brand new house directly from the builder. So you go out one weekend and look through the models in a couple of developments you saw in the paper. When you get to the model home one of the first things you have to do is register with the new homes representative at the model. They ask you a couple of harmless questions about your situation and contact information. One of the last questions they ask is whether or not you are working with an agent. This the key question they look at when determining how to handle you as a customer. If you answer this wrong it could end up costing you thousands in incentives as well as get you a house on an inferior lot that will one day be very difficult to sell.
Why is this question so important? Because builders and the representatives that sell their products are professional salespeople. And as professional salespeople they want to get the most out of every transaction. They sell houses every week. They use their experience against your inexperience to increase the profits of the builder. They do not tell you that you are by law entiltled to representation. They don't tell you that if you use competent representation (a good buyer's agent) you can actually get you more in incentives and a lower overall purchase price.
Builders representatives won't tell you because once you visit a new home model and register without an agent they get to add the commission, which is already built into the price of the home, to their already-fat profit margins. They won't credit you the commission amount back if you don't have an agent with you. Nor will they honor an agent if they were not with you during the first visit. And contrary to what any representative says, they will not get you a better price if you don't have an agent. You don't know what a better price is and they know that. But a good buyer's agent knows what others have paid and in some cases what added incentives are available that were not made public and only disclosed to certain individuals.
Builders are after all, in "business". That means making money. Since the builders' rep typically receives a bonus for writing a Purchase Agreement that doesn't include an agent, they are inherently trying to find ways to cut them out. And the builder loves adding 2 to 3 percent to their bottom line. Who wouldn't?
The builders' sales rep works for the builder and gets their paychecks and commissions from the builder. The builder is in business to sell homes for as much money as possible. The builder never tells you to have your own representation because it's not in their best interest. What about your best interests? You should never register with a home builder without an agent representing you.
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