Do You Need a Real Estate Agent for New Construction?

Buyers shopping for a newly built home can choose to work with an independent real estate agent, a builder’s sales representative, or both.

There’s no one “right way” to buy a newly built home, and buyers can enlist the help of an agent or handle the entire sale in-house with the builders team. Some buyers prefer a more DIY approach to buying and use a real estate attorney to review contracts. 

Buying a newly built home differs in significant ways from buying a new home, especially if the home is a custom build or is still under construction. The type of help you want or need depends on your understanding of the process, your comfort level with contracts and your ability to negotiate.

Zillow research shows that 80% of new construction buyers used an agent — slightly fewer than the 88% of households that buy an existing home. About a quarter of those new construction buyers (28%) shopped on their own before hiring an agent to finalize their home purchase.

Nearly all new construction buyers reported some use of a home builder or sales center (94%) while shopping for their home, according to the buyer research. Most dealt with the builder/sales center directly (84%) while 10% had their agent interact on their behalf.

Here’s what you can expect if you decide to go with an agent or a builder’s rep.

What is a builder’s sales representative?

A builder's sales agent — sometimes called a builder’s agent — represents the homebuilder in new construction transactions, focusing on selling homes on the builder's behalf. They act as a liaison between the builder and potential buyers, providing information about the builder's offerings, available options, and the construction process. While they can help you understand pricing and the contract, they ultimately work for the builder.

Did you know? You can contact builder’s agents directly on Zillow through a local home builder directory.

Pros and cons of working with a builder’s representative

Pros of a builder’s agent

They have in-depth, firsthand knowledge. Builder reps have in-depth knowledge of the builder’s offerings, the community, and the construction process. They can explain floor plans, options, features, upgrades, community amenities, nearby services and future development plans.

They’ll guide you through the decision-making process. Unless you’re buying a new home that’s already constructed, you’re going to be making a lot of decisions around finishes and upgrades. The sales rep can guide you through those choices and explain the cost differences.

They can walk you through financing and contract details: New construction contracts are usually different from traditional resale contracts. Sales reps typically can explain important legal issues related to warranties and builder guarantees. And they can help explain and arrange builder financing and incentives that can help lower the cost of buying.

Potential drawbacks of a builder’s agent

It’s important to remember that the builder's sales agent represents the developer so their main goal is to sell the builder's homes at the highest possible price. While they may be able to negotiate, they are not there to advocate for you on price or provide oversight on the building process to ensure you’re getting what you paid for.

What is a buyer’s agent?

A buyer’s agent is a licensed real estate professional who represents the interests of the homebuyer throughout the purchase process. They help buyers find properties, negotiate offers, help arrange financing, and navigate the complexities of the transaction from start to finish. Their primary job is to represent the buyer's interests in negotiations with the seller's agent, aiming to secure the best possible price and terms. 

Note that It’s important to find an agent who is familiar with new construction and how it differs from standard sales to help ensure they’re adding the most value to the transaction. You can also schedule a tour directly with a buyer’s agent on Zillow once you find a new construction home you love.

Pros and cons of working with a buyer’s agent

Pros of a buyer’s agent

They can give expert, localized advice: Your agent can research builders and provide unbiased advice about the builder, the community, and home options. They’re also experts in their local markets, and can evaluate how the builder’s offerings compare to other options available outside the development. Those market insights can help you negotiate price and other concessions such as mortgage rate buydowns, upgrades to things like countertops and appliances or even paint colors and outdoor finishes.

They’ll advocate for your best interests: A buyer's agent represents the buyer's interests, and can negotiate on the buyer's behalf for better deals, upgrades, and incentives. For example, they can recommend the upgrades that could bring you the greatest return in resale value, and suggest finishes that might be cheaper to do on your own. 

They can offer contract support and coordination: If your home is being built, your agent can review contracts to help ensure that your home is being built according to the contract, and coordinate with other professionals, such as your lender and inspector. They can also monitor timelines and troubleshoot any issues or disputes that arise. 

Potential drawbacks of a buyer’s agent

While there really isn’t a downside to using an agent, there may be some cost impact depending on the builder. Builders typically pay the buyer’s agent commission, which is negotiable and usually a percentage of the sale. The price is typically built into the cost of the home, depending on the size of the developer.

Builders often require your agent to be present at your initial visit or to register with them from the beginning for the agent to be involved and receive a commission. If you plan to work with an agent, let the builder know at your first meeting.

Should I hire an agent for new construction?

It's generally recommended that you hire a real estate agent when buying new construction since they represent only your interest in the transaction. Regardless of whether you work with a builder’s representative, an agent or an attorney, make sure you get all your questions answered and understand the process before you dive in. It will help the process go more smoothly, and help ensure you get the home you signed up for.

Wondering if new construction is right for you? Search new construction listings, and get more home-buying tips and resources to help you decide.