Pros and Cons of Using a Realtor for New Construction in 2024

Pros and Cons of Using a Realtor for New Construction

Written by admin

January 10, 2024

Have you decided to build your dream house? 

Making this decision is only the first part; what comes after is the real struggle. Investing in real estate without a realtor isn’t much different than jumping off a cliff without a parachute. When we talk about the pros and cons of using a realtor for new construction, the pros outweigh the cons in every aspect.

We have seen several people investing in houses and starting new construction without proper knowledge or any help from professional realtors. This might seem like an empowering idea at first, but once you dive into it, you will realize how big of a mistake it was. Real estate agents Columbia, SC, are professionals working in the field for several years. Investing your hard-earned money in real estate requires you to be quick-witted and call out the scams before you fall right into their palms. 

Yes, the scams are real. You might think you know the difference, but these scammers are so sharp that they will leave you dumbfounded with their tricks and strategies. Hence, it is important to hire a realtor before starting a new construction or buying a property. In this blog, we will discuss both pros and cons of using a realtor for new construction. Before mentioning the pros, let’s dig in and get the cons out of our way. 


You read it right. There are absolutely no cons to working with a realtor for new construction unless you hire the wrong one. Choosing the right realtor is also important because you don’t know which one might suit your needs better. Every realtor has a different personality and work ethic. Some might have better houses to show than others. You need to ensure that your goals align with your realtor if you want to get the house of your dreams. If you get stuck with the wrong realtor, there are many troubles that will come your way. Hence, be thorough and comprehensive with your interview and questions while hiring a realtor.

Pros of Using a Realtor

Following are some of the significant pros of using a realtor.

They Work for Your Best Interest

As someone who doesn’t have prior experience with real estate and construction, you might find yourself in a pickle at some parts. Having a realtor by your side gives you a lot of confidence. They work for your best interest and assist you in choosing the right home. You need to communicate your expectations to your realtor clearly so they know what type of construction you are aiming to do. Hire the realtor whose vision aligns with yours. This will help your journey with them become smoother.

They Represent You

You need someone to represent you in front of the builders and other professionals associated with your house building. When you are inexperienced, it is evident in your confidence and the way you carry yourself. Your realtor will be your spokesperson for the most part and deal with people on your behalf. All you have to do is rely on them and let them speak. People also take you more seriously when they know you have a realtor representing you.

They Negotiate on Your Behalf

When buying a house, negotiation is a big concern. You shouldn’t agree on the asked price as it is always a little higher than the property’s worth. Everyone is prepared for negotiations, so you must make them smartly. We know it can be challenging when you don’t know the market price of properties. Realtors are necessary for this reason. They are aware of the rates and know which property should cost you what. negotiate on your behalf so no one can scam you. They are responsible for getting you the best deal, and you can see their negotiations work once you start working with them.

They Hire the Right Builder

For good construction, hiring the right builder is a given. There’s no way you can expect your house to be brilliant if you don’t have a good builder. Your realtor makes sure that you hire the right builder for the job. They are well-connected in the industry and know everyone’s reputation. They will help you meet good builders, so you have reliable people working on your property. Getting your property on time is another thing that you should focus on. We have seen countless cases where the builder failed to deliver the property on time. Hence, professionalism should be your priority when hiring a builder.

They Can Help With Finances

As a new buyer, you might not be aware of funding options for house building. Realtors are well aware of these things. They can help you get loans if you plan to take any. You can talk to them openly about your plans. Whether you are taking a loan for construction or just for the land, your realtor should be the one to know.

They Help You Find the Best Location

Location plays a vital role in making or breaking your experience with house building. You must have a vision of the perfect location for your first home. You need to incorporate that with your construction. Finding the right location can be challenging without a realtor. They know their way around the cities; hence, they will tell you about locations that you might never have heard of otherwise. 

You shouldn’t compromise on location when it comes to building your dream house. If you get the location wrong, you will have to live with it for a long time. Having family around will only make it worse because you might be bothered by your neighborhood as well. There are also cases when buyers get a house simply because it is located in a pretty and green neighborhood, but they end up investing in a load of problems. Realtors have a deep understanding of marketing techniques, so they know which location just LOOKS nice and which ones are actually good for investment.

They Get the Paperwork in Order

New construction means a lot of paperwork. Real estate agents are aware of the paperwork that goes into house building. As an inexperienced purchaser, you won’t know how long the paperwork is before you dive into it. You will be amazed to see how much work is required to make everything compliant. Hiring a realtor means that you won’t have to worry about it alone. They will tell you about the documents that you need for construction. Getting the paperwork done on time will help you stay patient and focused on the construction while your realtor takes care of the documentation.

They Get the Home Inspection Done

New houses can have many unforeseen problems. You might not identify them at first, but once you start building a house or, worse, living in it, you will get to know about them slowly. A home inspection is necessary to ensure that you are not investing in the wrong property. Realtors take the responsibility of getting your house inspected before you put your money at stake. This helps you identify any hidden problems that the house may have. If they are solvable, you can work around them immediately or back off if you find some things that might be too problematic. In any case, a house inspection is a must.

They Continue to Represent You

You might think you are connected with your realtor until the end of the sale. However, this is not the case. The realtor’s job goes way beyond simply making the deal. They are connected with you even after you have built or purchased a house. In case the builder or tenants have some issues, your realtor is there to represent you. If you are the builder yourself, you will need someone to talk to the tenants or house owners whenever they face any issues with the building. They are connected to you as long as you own the property or choose a different realtor to work with. 

Who Pays the Realtor?

Whoever pays the realtor gets the most benefits. 

Who Pays the Realtor?

If you are looking to purchase a house and connect with the builder’s realtor, you must know that they will work in the best interest of the builder. You won’t be the one paying that realtor because they are working for the builder. If you want someone to look out for you, you should hire someone who gives you more options and has your best interest. 

As a builder, if you hire a realtor to sell your property, you will have to pay them. The rule is simple, and once you have figured it out, the process becomes easier for you.. 

Can a Realtor Negotiate the Price?

Realtors have the talent and knowledge to make hard negotiation possible for you. However, it varies from case to case. For example, if you are purchasing a house in an area where the builders don’t lower prices because they want to sell all their houses at the same price. This happens in areas where the number of houses is less as compared to the demand. The builder doesn’t have a reason to lower the price when the house can be sold anyway.

In such cases, your realtor can’t do much as they have to buy what the builder is selling. On the other hand, if it is a buyer’s market and the builders are willing to negotiate, real estate agents have a room as well. They have to see how much the builders are willing to concede so they can make their offers accordingly. 

In any case, it depends on the type of market you are aiming to dive in. Your realtor also has to work around these things, and they cannot be stubborn enough to fight builders who are not willing to negotiate. If they are, then your realtor can surely negotiate and get the best price on your behalf.

Final Thoughts

Buying a house or building it is a fun experience. It is challenging as well. Working without a realtor will make things tougher for you, whether you are an experienced buyer or not. You must indulge in the industry with a positive approach, and hiring a realtor is one of the best investments you can make. You should also find someone with similar ethics and interests because no lawyer can defend a client with opposing goals. Your needs and desires must be aligned with your realtor for a prosperous house-building experience.

Frequently Asked Questions!

Should I hire a specialized real estate agent for new construction?

Realtors have different experiences in the industry. Some realtors might have more experience in dealing with new properties than others. It is better to look for someone who has recently been dealing in new construction or new properties because they will have more worthy experience. Hiring a specialized agent for new construction might not be compulsory, but it is recommended.

How are realtors paid for new construction?

Just like any other real estate agent, the builder offers the buyer’s agent half the commission. Some people think that they will save money if they don’t hire a realtor and directly purchase a house from the builder. This is not the case; the builder doesn’t care whether you come with or without the realtor, but you should save yourself from trouble. Hiring a realtor will make the process easy for you, and their payment is no different from paying real estate agents for other properties.

What if I don't hire a realtor?

Many people don’t think hiring a realtor is necessary, but it can be a problem in many ways. Some house listings are not posted everywhere but are only restricted to realtors. If you don’t have one, you won’t be able to access those listings, and you will never know those houses were up for sale. 

You won’t be able to identify any potential problems in the house as well. Realtors have a keen eye for these things, and when you visit a new construction, you need to have someone who rationally examines the property. Your realtor is that person. They will also help you get the best price. So, in case the builder is exploiting you, the realtors will know and take you out of that situation.

Can I hire a realtor midway?

This is one of the mistakes that people make. While you are signing a contract with the builder, you need to mention whether you will have a realtor or not. If you don’t have a realtor right now and you mention it in the document, the builder won’t allow you to have one even in the future. They won’t be allowed to visit the property with you or communicate with the builder on your behalf. Hence, if you are thinking of hiring a realtor in the future, hire them now and mention it in the contract to avoid any problems.

Should I make the final walk-through?

A final walk-through is not essential, but it would be a good move to make sure that everything is in the right place. In many cases, the buyer wishes for repair before the sale. This final walk-through enables you to check whether those repairs have been made or not. You should also visit the house last time to check if it is in the same condition or not. This final step can make things certain for you.

What if I don't wish to buy the property anymore?

It can happen. We have seen many clients get cold feet and back out of the contract. Builders are also almost ready for it. However, this doesn’t come free. You need to pay earnest money, which is about 1-2% of the property’s price as the settlement money. You can back out from the deal, but remember that you will have to pay that price to close the deal.

How many houses should I check before purchasing?

It depends on you. We recommend you to look as much as you can. Purchasing the first house you find attractive or only looking at 2-3 houses for comparison isn’t the right approach. Remember that buying a house is a time-consuming process. You cannot put the pin on the first house you saw. Try to visit as many houses as possible and make rational comparisons between them. You need to analyze the benefits and drawbacks of investing in each house, just like we discussed the pros and cons of using a realtor for new construction in this blog.

How does earnest money work?

This works as a guarantee for the builder that the buyer’s intentions are legitimate. The amount of this money is 1-2% of the selling price, and once you pay that, the builder takes the property off the market. In case you get cold feet and back off from the deal, you need to say goodbye to the earnest money because that is non-refundable and works as a penalty in such cases.

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