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Office Location 18902 89th Ave E
Puyallup, WA 98375
Phone: (253) 820-2745
Fax: (253) 320-2102

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New home builders | Buy direct and save?

Posted by Brett Tousley on Thursday, January 6th, 2011 at 2:18pm.

Recently I drove by a billboard advertising a new home community.  While proclaiming the builder was the area's fasted growing builder, they also added a tag line stating this: "buy direct and save"

Of course one would assume the builder was talking about saving money, right? 

If so, the builder would be attempting to tell the public that buying a home without their own Realtor, would somehow save the consumer money.  In my experience with builders (and I have a lot of it) this is absolute farce.  The builders want you to visit their communities without your Realtor for one reason only.....increased profit for the builder.

Think about it, why on earth would a builder want you to buy a home without representation? 

1. To save the comission they would normally pay to your buyer's agent.  Don't be fooled into thinking they will actually give that savings to you.  Why would they do all the work for half of the pay?  I suspect they'll be pocketing it as added profit.

2. Without an experienced Broker representing you, most likely you as the buyer will be paying more for the home and/or fall into the trap of using the builder's "preferred lender".  Builder preferred lenders often offer lower closing costs to the buyer, this is a cost that the seller most often picks up.  Along with those lower closing costs, you'll sometimes pay a slightly higher rate in my experience.  Lenders are paid in a variety of ways and you need to look at their good faith estimate to understand this.

Neither of these options favors the home buyer in my opinion, but both greatly favor the builder.

Our advice to potential home buyers of new construction homes is to bring your buyer's agent with you on every single visit to a new home community.  Doing so will ensure you receive your own personal representation that has your best interests at heart and not just trying to slam you into the next available floor plan the builder has ready.

Did you know that many builders attempt to exclude your buyer agent from receiving payment for their services if you visit the community without them?  They do, and they are trying to save more than the commission by doing so.  There is much more for a builder to gain than just the commission if you buy without a broker on your side!

Not yet convinced you need your own broker to represent you in a transaction?

Let's look at the financial motivation between the two parties.

An exclusive buyer agent working on your behalf will get paid no matter what home you purchase.  Whether you choose new construction, existing resale, short sale or foreclosure, your agent will be paid by the seller for their work.  Chances are they will help you find the best home for the money, no matter who the seller may be.

A typical new home rep may only be paid if you buy a home in that development.  If you decide to buy another new home, resale or foreclosure on your own, they get paid nothing.

Which homebuilder do you think the new home rep will steer you to?

If you'd like to see ALL the new construction homes listed by All the new home builders in the area, please give us a call @ 253-820-2745.  We'll be happy to honestly represent you on the purchase of your new home no matter who the builder is in Pierce, King and Thurston counties.

Brett Tousley is the designated broker and owner of NW Home Brokers.  He can be reached at 253-820-2745 or broker@nwhomebrokers.com

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