Buying new construction with your own agent

Who works for whom

Freddie Mac's new-construction tips recommend finding your own agent who is not affiliated with the builder, has experience in new construction, knows the area and, ideally, has worked with that builder before. That experience helps when choosing options and negotiating.

The CFPB adds that agents can represent buyers, sellers or both, and that state laws can require agents to tell you whom they represent. Ask the model home staff directly.

Timing matters

Freddie Mac notes that many builders require your agent to accompany you on your first visit. Some builders will not work with an agent who shows up after you have already registered on your own. Before you tour a new community, pick an agent and ask the builder about its registration policy.

Paying your agent

Since the 2024 NAR settlement, buyers working with NAR members sign a written agreement before touring, and compensation is negotiable. Builders sometimes offer to pay a buyer's agent, but that is not guaranteed. Get the arrangement in writing in your buyer agreement, and ask the builder up front what it will contribute.

What your agent can negotiate

Freddie Mac says builders are frequently reluctant to cut the sales price because other buyers would see it. They may instead add options such as upgraded flooring or appliances, or pay closing costs. An agent who knows the builder can help you decide which concessions are worth most and whether lender incentives are really better than shopping elsewhere.

The builder's lender

The CFPB says homebuilders often have an associated lender, but you do not have to use it and have the right to shop around. Freddie Mac notes that a preferred lender may offer competitive rates and fees, and early in a development it may be the only option, so understand terms such as how long the rate lock lasts. Compare Loan Estimates before deciding whether an incentive tied to the preferred lender is worth it.

Contract terms to read closely

Builder contracts are usually written by the builder. With your agent, and an attorney if needed, look at:

• Deposit refunds. The CFPB suggests asking under what conditions the builder deposit can be returned.
• Completion date. Freddie Mac advises knowing the completion date and what happens if it is missed.
• Warranties. Make sure you understand all warranties, from the structure to appliances. For FHA and VA new construction, HUD's form HUD-92544 gives a one-year warranty that the home was built in substantial conformity with its plans and specifications.
• Changes and upgrades. Check change-order pricing and deadlines.
• Inspections. Confirm you can bring your own inspector during and after construction.

Inspections on a new home

Freddie Mac recommends a home inspection even on a new home. Many buyers schedule inspections at key stages, such as before drywall goes up, and again before closing. Your agent can help coordinate access with the builder.

The bottom line

The builder's sales team works for the builder. Bring your own experienced agent from the first visit, put compensation in writing, shop the builder's lender and read the deposit, completion and warranty terms closely.