Buyer Resource Center › Choosing the Right Representation › Planning to Purchase New Construction? Rely on a Buyer's Rep!
New construction is exciting. Everything is fresh, energy efficient, and built to current codes. But the friendly sales rep in the model home works for the builder, not for you, and builder contracts are written to protect the builder. Having your own buyer's agent levels the playing field. Here's why it matters and how it works.
6 Things to Know About Buying New Construction
Bring Your Agent on Your First Visit
Many builders require your agent to be with you, or registered, on your very first visit to the community. If you walk in alone and sign the guest book, the builder may not work with your agent later.
The Builder's Rep Works for the Builder
The on site sales team is there to sell homes at the builder's price and terms. They can be helpful and honest, but their job is to represent the builder's interests, not yours.
Builder Contracts Need a Careful Read
Builder contracts often differ from standard purchase agreements. They may limit your remedies, allow construction delays, and set strict rules on deposits and change orders. Review every page before you sign.
Negotiate Upgrades and Closing Costs
Builders often prefer to protect their base prices, but they may be flexible on upgrades, lot premiums, or closing cost credits. Incentives tied to the builder's preferred lender can be valuable, but compare them with other lenders.
Get Independent Inspections
New doesn't mean perfect. A pre-drywall inspection catches framing, plumbing, and electrical issues before walls go up, and a final inspection before closing catches what the punch list missed. An inspection before your warranty ends is smart too.
Know the VA Requirements
To buy new construction with a VA loan, the builder generally needs to be registered with the VA, and the home must meet VA requirements, including warranty coverage. Not every builder is set up for VA buyers.
The bottom line: New construction can be a great choice, especially for buyers who want low maintenance and modern features. Just remember the builder has a team working for them. Bring your own agent from the first visit, read the contract closely, inspect independently, and negotiate where builders have room to give.
Frequently Asked Questions
Do I need a real estate agent to buy new construction?
It's not required, but it's highly recommended. The builder's sales rep represents the builder. Your own agent reviews the contract, negotiates on your behalf, and coordinates independent inspections.
Does it cost more to use an agent for new construction?
Usually not. Many builders cooperate with buyer's agents, and compensation will be spelled out in your buyer agreement. Ask your agent how it works with the specific builder.
Can I use a VA loan to buy new construction?
Yes. The builder generally needs to be registered with the VA, and the home must meet VA requirements, including warranty coverage. Confirm this with the builder and your lender early.
Should I get a home inspection on a brand new home?
Yes. Pre-drywall and final inspections can catch issues the builder missed, and an inspection before your warranty ends helps you get covered repairs made.
Should I use the builder's preferred lender?
Compare the offer. Builder incentives can be valuable, but rates and fees vary. Get a Loan Estimate from at least one other VA lender to see the true difference.
What can I negotiate with a builder?
Upgrades, lot premiums, closing cost credits, and sometimes price, depending on the market. Builders often have more flexibility on extras than on base price.
Keep Reading
What Your Buyer's Agent Does for You
Everything a buyer's agent handles, and how to choose the level of service you want.
Read more ›The Home Inspection Process
What an inspector checks, how to get the most from your inspection, and how VA appraisals differ.
Read more ›5 Reasons to Sign with a Buyer's Agent
How a written buyer agreement protects you.
Read more ›
Meet Your Veteran Realtor
Troy Doty, Principal Broker
Troy Doty is a Principal Broker with Northwest Realty Source in Portland, with 25 years in real estate and over 1,000 homes sold across the Portland metro and SW Washington. As a Marine Corps veteran, Troy has a true passion for helping Portland veterans and active duty military families buy and sell homes, whether you're PCSing in, transitioning out, buying your first home, investing in a duplex, triplex, or fourplex, or right sizing later in life.
Schedule a Call or Video Meeting ➜ More About Troy ➜ Free Veteran Buyer E-BookPrefer to call or email? 503.997.4169 · troy@nwrealtysource.com
Troy Doty, Principal Broker, Northwest Realty Source. Licensed in Oregon and Washington. ABR®, MRP, and SRES® are credentials of the National Association of REALTORS® and its affiliates. CIAS™ is a designation of U.S. Realty Training. Content adapted in part from ABR® consumer resources. This page is general information, not legal, tax, or lending advice.
