Do I need a Real Estate Agent when Purchasing New Construction?

Dated: 06/20/2019

Views: 13

Click to See New Builds in Colorado Springs, Monument, and Falcon

Do I need a Real Estate Agent when Purchasing New Construction?

I often hear this question as a real estate agent.  The short answer to this question is YES you do!  Here are some of the top reasons why you want a Buyer’s Agent on your side:




The #1 reason to hire a Buyer's Agent is that the sales agent represents the builder and the builders best interest in the sale, not yours.  In fact many builders in the El Paso County area do not even allow their sales agents to have Colorado Real Estate License, because they want their sales agents to be fully committed to selling their product.  


A Buyer’s Agent sole job is to represent your best interest in a property.  This helps to facilitate a smoother transaction with the less frustrations. Make sure when you Register with a new home builder to communicate that you are represented.  Otherwise some builders will not allow you to bring an agent in later in the transaction.  It is best to bring your Realtor with you the first time you visit a new builder.

Model Homes are NOT all created equally


Almost all model homes look great and why wouldn’t they?  Most of them have $50-$100,000 in upgrades in them.  Different standards of granite, roofing material, windows, siding, crown molding, sprinkler systems, finished basements, upgraded appliances, fireplaces, bookshelves, trey ceilings, and cabinetry are examples of upgrades that are not included in base pricing.  A good agent can help you stay on budget and help guide you with most important upgrades and to suggest what upgrades can be done at a later time, in order to stay on budget.


Agent Fee’s


Agent Fees are built into the purchase price of the home, as a cost of doing business.  Builders do not discount their sales price in order to adjust for you not having an agent.  If builders did adjust this cost it would impact the selling price of future homes being built and dissuade Realtors from bringing new clients to their properties ultimately affecting their sales.  In fact builders rely on Realtors to bring them clients. Either the builder keeps the difference or the builders sales agent keeps the additional funds from the commission. In essence you are hiring a Buyer’s Agent for FREE, there is no downside to having an advocate on your side.




Some but not all builders are willing to negotiate on upgrades to the property.  In fact, most builders have incentives and discounts based on build times and availability.  Most builders will negotiate some on upgrades and allowances. For instance, some builders will pay closing costs. An experienced Buyer’s Agent will help guide you through negotiations and help you get the most out of your money.

Document, Document, Document


Everything in a new construction is based on the contract and its timelines.  Do not sign anything until all concessions or guarantees are in writing from the builder, to include timelines and fees associated with the home.  If you do sign before everything is in writing the builder does not have to deliver what was promised and you have no recourse to make them perform.   A Buyer’s Agent will ensure that all the terms you discussed with the builder are in the contract.




Most sales agents for the builder will tell you that you don’t need an inspection of the home.  This simply isn’t true. I always advise my clients to have a final home inspection by a licensed inspector. The builder is usually not keen on having their work inspected by an outside agency.  Here are a few items that clients in my firm encountered in new construction: missing insulation, crushed main lines due to construction, and miss wired electrical outlets. Many times items found on the inspection are not covered by home warranty.  An outside inspector and your buyers agent together have your best interests in mind and can help to rectify any problems before closing, either through corrections or reductions in price.



Most builders have preferred lenders that they recommend.  However, is this the best financing available? An experienced agent has connections with several different lenders so you can shop and compare interest rates.  Even a small increase in interest rates can make a big difference in your monthly payment . A Buyer’s Agent will have several reputable lenders to connect you with, so that you can compare rates.



Everyone wants to walk away from purchasing a new home feeling good about it.  Don’t let your sole source of information and contact be the builder.  Hire a Buyer’s Agent to represent you and your best interests.  


If your thinking of purchasing new construction, Be represented and let me guide through the process!

Jennifer Sullivan

719-499-7583   Cell

Text JSully to 85377

for my mobile business card

Blog author image

Jennifer Sullivan

Jennifer Sullivan’s G.R.I. , O.I.C.P. - Areas of Service Hi, my name is Jen Sullivan and I specialize in residential real estate in Colorado Springs and Monument, I also service Cascade-Chipita Pa....

Latest Blog Posts

Do I need a Real Estate Agent when Purchasing New Construction?

Click to See New Builds in Colorado Springs, Monument, and FalconDo I need a Real Estate Agent when Purchasing New Construction? I often hear this question as a real estate agent.  The short

Read More

Genevieve, a Quick Introduction

Hi Colorado Springs! My name is Genevieve, and I recently joined Exit Realty Pikes Peak. I believe in connections, and that coincidences are not so much accidents as subtle guides telling us to pay

Read More

Coming Soon...8655 Pepperridge and 15950 Elbert

Coming Soon! 8655 Pepperridge Drive, Colorado Springs, CO 80920 AND 15950 Elbert Road, Peyton, CO 80831. Tip! Your VA Certificate of Eligibility. Are you looking to buy or sell a Colorado Springs

Read More

Why Real Estate after the Army?

This is my story. As a Colorado native and a United States Army retiree turned Realtor professional, I recognized and value the trust my clients place in me, and I strive every day to exceed

Read More