Pros and Cons of Using a Real Estate Agent for New Construction
Using a buyer’s agent for new construction provides valuable expertise and guidance. However, recent commission changes mean you might have to negotiate and pay your agent’s fee yourself.
When you buy a brand-new home, you’ll mostly deal with the builder’s sales agent at a model home or sales center. But as you negotiate your new construction purchase, should you rely solely on the sales rep or have your own real estate agent in the mix to help negotiate this major purchase?
While you don’t have to use a real estate agent to buy a new build, it’s a good idea to have someone there to advocate for you and explain the nuances of the process, especially if this is your first rodeo.
Pros of Using a Real Estate Agent for New Construction
Hiring a real estate agent to help you buy a newly built home comes with many benefits. These include:
1. You Have an Advocate
When you walk into a builder’s sales office without an agent, the sales representative works exclusively for the builder — and isn’t looking out for your interests.
“Most buyers think that purchasing new construction directly from the builder streamlines the process and is a money-saving strategy, but history has proven that it is usually invaluable to have a professional real estate agent present in these transactions,” says Levi Rodgers, a real estate broker and founder of The Levi Rodgers Real Estate Group.
A buyer’s agent acts as your advocate, asking tough questions about construction quality, contract terms, and timelines, and raising potential issues the builder’s agent might gloss over.
2. Negotiation Expertise
New construction prices and terms are negotiable. While builders might be hesitant to lower the base price (especially in competitive markets), a skilled buyer’s agent can help you negotiate:
Upgrades and premium features at reduced costs
Extended warranties
Flexibility on timelines and contract contingencies
“Where an experienced real estate agent truly earns his or her commission is in navigating less obvious pitfalls such as negotiating builder incentives, revealing hidden upgrade charges, or holding builders to construction quality and timeline standards,” Rodgers says.
Where an experienced real estate agent truly earns his or her commission is in navigating less obvious pitfalls such as negotiating builder incentives, revealing hidden upgrade charges, or holding builders to construction quality and timeline standards.
3. Knowledge of Reputable Builders
Buyer’s agents who specialize in new construction have likely worked with multiple builders, so they know the market (and the players) inside and out. Not all builders are created equal, and a skilled agent can recommend the best ones — and help you steer clear of those with less-than-stellar reputations.
This insider knowledge is golden if you’re buying from out-of-town and you’re unfamiliar with the builders in the area. Your agent can recommend solid, reputable companies known for quality construction while helping you avoid builders with problematic track records.
4. Contract Protection
New construction contracts are written by builders’ attorneys primarily to protect the builder’s interests. That means there could be unfavorable clauses for buyers, such as:
Limited remedies for building delays
Broad language about “substantial completion”
Restrictive arbitration clauses if there are issues with the property
Your real estate agent can review the contract with you, explain the intricacies of complex clauses, and recommend modifications that better protect your interests — and your investment.
5. Construction Oversight
It can take six to 12 months to finish a new home, and you’ll need to make a host of decisions along the way. A good buyer’s agent will:
Attend pre-construction meetings.
Join you for inspections at each building phase.
Document construction progress.
Help resolve issues that arise during the building process.
Create a punch list of mistakes or unresolved construction tasks and coordinate corrections.
Having another layer of oversight ensures the finished product matches what you asked for and meets the highest quality standards. Plus, builders may be less tempted to cut corners if they know you have an agent overseeing the process.
Related: Should You Get an Inspection on a New Construction?
Cons of Using a Real Estate Agent for New Construction
Of course, there are some drawbacks to using an agent for a new build, namely the commission fee. Here are the disadvantages:
1. You Might Have to Pay Your Agent’s Commission Fees
Following the National Association of Realtors (NAR) landmark commission lawsuit settlement, which got final approval in late 2024, NAR’s rules about offers of agent compensation on the MLS have changed. Additionally, buyers must sign an exclusive buyer’s agency agreement with a real estate agent before they can tour homes.
As a result, your builder may not want to cover the agent’s commission, putting that ball firmly in your court. Nationally, the average buyer’s agent commission is 2.58% of the home’s purchase price, according to recent data from Clever Real Estate. However, real estate commissions are (and always have been) negotiable, and some builders may still offer to cover the fee (it doesn’t hurt to ask).
As you weigh this added cost, don’t forget to account for other homeownership costs: the down payment (which varies by loan program) and closing costs (another 2% to 5% of the loan amount).
Related: Landmark Verdict Has Homebuyers Asking ‘Do I Need a Buyer’s Agent?’
2. Some Builders Offer Incentives for Unrepresented Buyers
Some builders try to entice buyers who don’t have their own agent by offering financial incentives, such as closing cost credits, price reductions, or free design upgrades. While these perks can sweeten the deal, you’ll need to weigh them against the risk of not having an advocate in your corner.
The savings you might get with these incentives might not be worth foregoing your own representation and risking an even costlier issue during the new construction process.
3. Potential Interference With the Builder’s Process
Some builders prefer to work directly with buyers and might not welcome an outside agent getting involved in the process. This could create unforeseen friction during the building process, especially if your agent holds up critical timelines or isn’t as knowledgeable about new construction.
While professional builders still have to honor their contractual obligations and build the home to specifications, you might not receive the same level of service or flexibility as an unrepresented buyer.
4. Limited Negotiating Power
In high-demand markets or with certain builders (custom builders, for instance), you might not have a lot of wiggle room to negotiate, regardless of whether or not you have a buyer’s agent.
If that’s the case, your agent’s value may be more about holding your hand through the building process and overseeing each phase of construction instead of getting the builder to make financial concessions.
5. Possible Overlap With Builder Resources
Many large national builders have streamlined their processes and have in-house customer service staff to guide buyers through the design and building process. If you work with one of these large builders, some of your agent’s services might be redundant and more hindrance than help.
Can You Buy a New Build On Your Own?
Yes, you can purchase a new home without a buyer’s agent. In fact, builders are increasingly prepared for this scenario as the industry adjusts to the new commission rules.
But just because you can do it on your own doesn’t mean you should. Before deciding to buy a new home without help, consider these factors:
Your knowledge of construction and real estate contracts.
Your negotiation skills and comfort with potential confrontation.
Your time availability to oversee the building process and communicate issues with the builder.
The builder’s reputation, customer service support and the project timeline.
If you’ve built a home before or you’re an experienced real estate investor, you might feel confident in your ability to manage the process without help. But if you’re a first-time homebuyer or this is your first time building a home from the ground up, you might want to lean on the expertise of a skilled buyer’s agent who specializes in these transactions, Rodgers says.
“All commissions are negotiable, so even if you have to cover the agent’s commission, having someone in your corner, someone who’s licensed, experienced, and looking out for your best interest is 100% worth it,” Rodgers says. “It’s not just about getting into a home; it’s about protecting your future and making well-informed real estate decisions.”
How to Find a Buyer’s Agent Who Knows New Construction
Not all agents have experience with new construction. When searching for a buyer’s agent, look for these specific qualifications:
Certifications: Some agents have specific real estate training and designations to work with new construction, including the New Home Co-Broker (NHCB) designation; the Certified New Home Specialist (CNHS) designation; or membership in the National Association of Home Builders or your local building association.
Builder relationships: Ask agents which builders they’ve worked with (and get references!) and how many deals they’ve done with those builders.
Level of service offered: Some agents offer discounted fees, but that’s usually because their level of service is reduced. As you interview potential buyer’s agents, ask them to spell out exactly what services they provide and how involved they’ll be during the building process.
Ample references: Make sure the agent you ultimately choose can provide a few references from builders they’ve worked with as well as past clients who purchased new construction with their help.
The Bottom Line
Buying a new home is part exciting, part scary. With home affordability an ongoing challenge, you might be tempted to skip the agent to save money. However, foregoing professional representation may not be in your best interest, especially if you’re a first-timer. If you opt out of hiring an agent, consider hiring a home inspector to assess the home’s condition after it’s built and a real estate attorney to review your purchase agreement with the builder.
Ultimately, deciding whether or not to use a real estate agent to buy a brand-new home boils down to your comfort level with the process, your budget, and the specific builder you work with.
