Do I Need A Realtor When Building a New Home

Do I Need a Realtor When Building a Custom Home?


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Building a custom home is a great way to get exactly what you want without worrying about making updates for a while. However, the process of buying a new home is a bit different from buying an existing home. If you’re considering building a new home, you might be wondering whether or not you need a realtor. The short answer is: it depends.

While it’s not required, there are reasons to consider hiring an agent when buying a new construction home. As a Wichita home builder, the team at Sharp Homes wants our clients to feel comfortable with their decision, so we’ve outlined some thing to consider that can help you make your decision.

Things to Consider

You can work directly with the builder’s agent when buying your dream home. He or she will walk you through the building process as you select your floor plan, choose a lot and customize your home down to the finishing touches. 

Many home buyers feel more comfortable hiring a realtor to represent their interests, and this is also perfectly acceptable. This person can be your point of contact during the building process, and there’s no additional cost to you.

The Different Types Of Real Estate Agents

Generally, a real estate agent represents one party: either the buyer or the seller. In some cases, they can serve as a transaction broker, meaning they ensure the property exchanges hands according to real estate law, but they do not represent either party’s interests.

When it comes to buying a new construction home, there are two types of real estate agents: builder’s (seller’) agents and buyer’s agents. Each custom home builder, such as Sharp Homes, has a realtor who serves as their representative and advocate for their interests in the entire real estate transaction. Similarly, you, as a new home buyer, are entitled to use a buyer’s agent to work on your behalf as you go through the home buying and building process.

What Is A Builder’s Agent?

The builder’s agent represents the builder throughout the custom building and selling process. When you tour model homes in Wichita, the person you typically meet in the new home community is a builder’s agent or an agent for the community developer. 

The builder’s agent’s job is to help you learn about all the different home building options and serve as a point of contact between you and the builder. He or she can be your resource as you work through the many decisions of building your dream home, such as buying a lot, choosing a floor plan and selecting finish packages. They will also be present at the closing when ownership of the home is transferred to you.

What Is A Buyer’s Agent?

A buyer’s agent is a real estate professional who helps you, the home buyer, through the process of building or buying a new construction home. Buyer’s agents have a legal obligation to protect your interests and negotiate on your behalf from the purchase contract, through construction and on to closing. 

When you hire a real estate agent, their job is to focus solely on your wishes and serve as your single point of contact with the builder’s agent. This can help be helpful when questions come up or you need to negotiate during the building and buying process.

How Do Real Estate Agents Get Paid?

Let’s face it: cost is probably the biggest concern home buyers have when deciding whether or not to work with a real estate agent when building a custom home. By first understanding how real estate agents get paid, you may find the answer becomes clear.

It doesn’t matter what side of the real estate transaction an agent is on, all realtors get paid a commission on the sale of the property. The typical commission is 6% of the home’s sale price and it’s usually split evenly between the buyer’s agent and the builder’s agent. This means the seller technically pays for both agents because their fees are deducted from the proceeds of the sale.

Here’s the thing:

Home builders factor in the commission for both agents when they price their homes. In other words, you can work with a buyer’s agent without any additional cost to you. Keep in mind, though, the home’s price stays the same even if you decide not to work with an agent.

The Bottom Line

Now that you have a better understanding of the role real estate agents play when buying a new construction home, as well as the associated costs, you can make the decision that fits your needs. At Sharp Homes, we’ve worked with many wonderful Wichita area real estate agents over the years, so whether you choose to work with a buyer’s agent or not, we feel confident that we can build the home of your dreams.