Today, I want to talk about three common misconceptions people have when looking at open houses and working with new construction.
#1: “I don’t wanna buy my agent, I’ll just run through and let my agent know if I liked it or not.”
At an open house, the Realtor who is most interested in SELLING the house will be the one talking to you- about everything positive and wonderful and great about the house. But you need to see the other side of things, too! Don’t go to an open house without your own Realtor, who is looking out for YOU best interests and not the seller’s.
#2: “If I work directly with the builder, I’ll get a discount.”
The problem here is that the builder will send you directly to the their own agent. The BUILDER is represented there, ultimately looking out for the builder’s best interests and not yours. You may get a ‘discount’, but lose out on having someone advocate on your behalf on closing costs, pricing, and the actual value of the home. Unrepresented buyers with newly built homes often upgrade WAY too much, making their home loan greater than the actual value of their home. These buyers end up underwater on their home and are unable to sell their home for years.
#3: “I’ll save money if a work with the listing agent directly.”
Let’s say you walk through an open house without a real estate agent. The agent who is selling the home may try to entice you to work directly with them, sometimes for a discount. The issue is that the listing agent is already representing the seller and will go to their first interests. You won’t get the best advice on what’s best for you. You need someone directly on your side, fighting battles on what is best for you!