Should I Use An Agent When Buying New Home Construction?

The better question is, “Why would you not use an agent when purchasing new home construction?” It costs you absolutely nothing to have an agent representing your best interest when buying a new build. Some people are going to say, “But Dan, won’t I get a better deal on the price if a builder doesn’t have to pay my agent?” Answer: “No and no.” When builders frame their pricing structure, they do so with the anticipation that they will have to pay a buyer’s agent on every house. The buyer’s agent’s commission is already figured into every deal no matter what the builder’s bottom line is on any particular home. If a buyer does not use an agent in their transaction, then the builder just makes more money.

If you are in Denver, the theory “I will get a better deal if I don’t bring an agent.” doesn’t apply at all. You see, there is so little re-sale inventory which means that new homebuilders are in the driver’s seat. They have all the leverage in a real estate transaction and are dictating all the terms to today’s homebuyers. I walked into a half dozen new homebuilders in the Denver Metro area in the last six months and every one of them told me point blank, “There are no negotiating prices.” If there are no negotiating prices then there is no chance to get a better deal “if you don’t use an agent.”

Now that the “better deal” argument is off the table, let’s talk about a few ways that a realtor can help you with new home construction. First, there are at least 8 to 12 pitfalls in every builder’s contract. A good realtor will know these, point them out to the client, and discuss consequences. Second, picking the right lot and the right model is critical, particularly if you are thinking about re-sale in the next five or ten years. A good realtor should be able to advice on lot, model, and finishes that create value when it comes to re-selling that home. Third, realtors can protect your best interests when it comes to details like radon, home inspections, walk–through, and closing.

Finally, not all-new construction is created equal; there are good builders/developments and there are bad. A good realtor will know which is which and be able to advise their clients in making good choices. If you would like to talk with our team or me about buying a new construction home, contact me at

Dan Polimino is a Broker/Owner with the Colorado Dream House Team, Keller Williams Realty DTC. Contact Dan at 303-522-1161,, or

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