Do I have to pay my agent when buying new construction?

No. In the vast majority of new construction transactions, the builder pays the cooperating broker commission. Your representation is essentially free.

Will the builder lower the price if I don't use an agent?

Almost never. The builder's budget already includes marketing and commission costs. If you don't bring an agent, the builder simply keeps the commission -- they don't pass the savings to you.

When should I bring my agent to the model home?

On your very first visit. Most builders require that your agent be present at registration or identified on the first visit to receive commission credit. If you visit alone first, you may lose the ability to have representation.

Why You Need an Agent for New Construction

## The Myth: "I Don't Need an Agent for New Construction" It's one of the most common misconceptions in real estate: "If I'm buying a brand-new home from a builder, I don't need a Realtor." In reality, skipping your own agent is one of the costliest mistakes a buyer can make. ### The Builder's Agent Works for the Builder When you walk into a model home, the friendly sales agent behind the desk works for **the builder**, not you. Their job is to: - Sell homes at the **highest possible price**. - Encourage you to select **high-margin upgrades**. - Protect the builder's interests in the **purchase contract**. - Keep the builder's **comparable sales** as high as possible for future phases. They may be wonderful people, but their fiduciary duty runs to the builder. You need someone whose duty runs to **you**. ### It Costs You Nothing Here's the part that surprises most buyers: **you don't pay your agent's commission when buying new construction.** The builder has already budgeted a cooperating broker fee (typically 2-3%) into their pricing model. If you don't bring an agent, the builder simply retains that money. They do not reduce your purchase price. ### What Your Agent Brings to the Table #### 1. Contract Review and Negotiation Builder contracts are written by the builder's attorneys and heavily favor the builder. Your agent will: - Review the purchase agreement line by line. - Negotiate a realistic **completion date** with penalties for delays. - Ensure proper **contingencies** (financing, appraisal, inspection). - Push for a **sunset clause** so you aren't locked in indefinitely. #### 2. Upgrade and Incentive Negotiation Builders have margin flexibility they won't volunteer. An experienced agent knows to negotiate: - **Lot premiums** -- that mountain-view lot may have a $15,000 premium that can be reduced or waived. - **Design center credits** -- $10,000-$25,000 in upgrades at no extra cost. - **Rate buy-downs** -- The builder's preferred lender often offers 1-2 point buy-downs. - **Closing cost credits** -- Builders frequently offer $5,000-$15,000 toward closing costs. #### 3. Independent Inspections Most buyers don't realize they can (and should) order **independent inspections** on new construction: - **Pre-drywall inspection** -- Catch framing, plumbing, and electrical issues before they're hidden behind walls. - **Final inspection** -- A third-party inspector will find defects the builder's own QC team missed. - **11-month warranty walk** -- Your agent will remind you to schedule this before your builder warranty expires. #### 4. Market Knowledge Your agent knows whether the builder's base price is competitive. They can tell you: - What **comparable resale homes** sold for in the area. - Whether the builder has been **dropping prices** or offering incentives on unsold inventory. - Which **phases and lot positions** offer the best long-term value. - Whether the **HOA fees and structure** are reasonable for the community. ### The Critical First Visit Rule **Bring your agent on your very first visit to the model home.** Most builders require the buyer's agent to be present at initial registration. If you visit alone, sign in, and later try to add your agent, many builders will refuse to pay the commission. Don't lose your free representation over a casual weekend drive-by. ### Real Numbers: What Representation Saved My Last Client On a recent new construction purchase in Lehi, I negotiated the following for my buyer: | Item | Builder's Initial Offer | Final Negotiated | Savings | |------|------------------------|-------------------|---------| | Lot Premium | $12,000 | $0 | $12,000 | | Design Center Credit | $0 | $15,000 | $15,000 | | Closing Costs | $0 credit | $8,000 credit | $8,000 | | Rate Buy-Down | None | 1-0 buy-down | ~$4,800/yr | | **Total First-Year Savings** | | | **$39,800** | The buyer paid me nothing. The builder paid my commission from their existing budget. ### Bottom Line Having your own agent for new construction is **free, protective, and financially advantageous**. There is no scenario where going unrepresented benefits the buyer. --- *Building or considering new construction in Utah County? [Schedule a free consultation](/contact) and I'll walk you through every builder community in the area, negotiate on your behalf, and make sure your interests are protected.*

CS

About Cory Salisbury

Licensed Utah Realtor helping Utah families buy and sell homes across the Wasatch Front since 2012. Cory specializes in data-driven strategies, buyer negotiation, and new construction.

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