Realtor Representation and New Home Builders: What’s the Deal?
Walk into any model home center in Arizona and you’ll see a the following phrase posted prominently on the door:
“If you are working with a Realtor, they must accompany you during your first visit.”
The implication of entering the model home center without your Buyer’s Agent with you is that the builder will deny you representation. Read carefully: ANY representation.
You see, if your Realtor isn’t allowed to represent you, you won’t get representation. The sales agent that gives you the colorful packet of information and the ‘Grand Tour’ of the models doesn’t represent you. In fact, they are paid to represent the builder ONLY. They don’t serve as dual agents. You’ll sign several disclosure statements indicating as much.
But you’ll save money by not working with an agent, right? Nope. The commission has already been factored into the cost of the home and will either be directed towards your Realtor, a professional to represent you during the transaction, or it will remain in the builder’s pockets.
Not only will representation by your Realtor be free, but a professional who’s experienced with new home sales may in fact know how to negotiate on your behalf to save you as much as possible, while simultaneously looking out for your best interests.
Let’s take it one step further. According to a Community Representative at Trilogy at Vistancia, Shea Homes will not allow you to be represented by a Realtor IF YOU CONTACT SHEA BY EMAIL, PHONE, OR WEBSITE, regardless of whether or not your Realtor accompanies you to the community on your first visit. So if you’re looking to buy a new Shea Home at Trilogy or any other Shea community, buyer beware! Be sure to run any and all initial correspondence through your agent, if you have one. It’s their job to help you anyway. A simple, harmless email to the builder could cost you in more ways than one.