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Buyer Beware with New Home Construction

Do you love the idea of a new home?

New homes can be intoxicating, with the new home paint smell and up-to-date fixtures and finishes, along with the latest in design and floor plans. The model home is often professionally designed and staged to entice buyers.

But there is a potential danger ahead….

So what could go wrong? A new home should be perfect since it is brand new, right? No!

There actually is no such thing as a perfect home, even if it is brand new!

Any seasoned real estate agent or home inspector will confirm the number of code violations and serious issues in new homes is surprising. Builders, like in all industries, have a range of quality and experience, and a reputation that is often well known among real estate agents and home inspectors.

Who is looking out for the buyer?

Many buyers make a serious mistake thinking they don’t need a real estate agent and home inspector to represent their best interests when buying a new construction home. Quite the contrary.

There are significant benefits to having an agent who specializes in representing buyers guide and support a buyer during the process of buying a new home. Whether the home is built from the ground up or an already built spec home, new home buyers should always be represented by an agent with specific experience in new construction and with years of experience in real estate buyer agency.  A buyer’s agent is paid by the builder as part of the cost of selling the home, so there is zero additional cost to the buyer.

On the Path & Post Team, our Buyer Specialist Agents have many years of full time experience exclusively representing only buyers, so they are more focused and experienced in representing buyers.

What obstacles should a new home buyer watch out for?

  • The builder’s agent or rep works 100% in the best interest of the builder, not for the buyer.
  • Buyer Specialists often know the builder’s reputation in the community or have sold the builder’s homes as new homes or as resales and can provide valuable insight into the builder’s reputation or quality of construction.
  • Closing Costs “paid by the builder” may not be a good idea if the rate is increased to compensate or the appraisal is “easier” due to a vested interest by the builder’s lender. Buyer Specialists can review the financing opportunity and recommend other lenders for a second opinion, keeping the buyer’s best interests in mind.
  • Buyer Specialists go to bat for the buyer and can be the “bad guy”, if needed, so the buyer can maintain a good relationship with the builder for ongoing warranty items after closing.
  • The best neighborhoods with professional onsite agents and builder reps value relationships with buyer agents who have the potential to bring them more buyers. So they often go the extra mile for agents & their buyers who have a strong reputation in the community. (YES….like Path & Post Team agents!)
  • When visiting new home communities, tell the onsite agent or builder rep that you DO plan to have a buyer agent represent you and that you are in the “just looking” stage so they will not pressure you.
  • New homes do need home inspections. Building inspectors miss code violations all the time. Buyer Specialists can recommend the most thorough, experienced local inspectors to protect your investment.


If a builder’s agent or builder’s rep tries to encourage or entice you as a buyer to have no buyer agent representing you, it is a RED FLAG that the builder may have a poor reputation for quality or may try to take advantage of the buyer’s lack of experience in new home transactions.

Bottom Line

Have a professional, experienced, full-time buyer specialist represent you whether you buy a new home or a resale. Don’t feel obligated to use a family member or friend, and risk that relationship, or be a guinea pig while they are a new agent learning the business. Read about the unique considerations & risks of working with a family member or friend Here.

For one of the most significant financial and emotional decisions in your life, base your selection of a buyer specialist on facts and research, much like how you choose a car or new appliance! Look at an agent’s years of experience and track record of sales, as well as on what others say about working with them in online reviews. Check out the Path & Post Team’s reviews on Zillow Here.

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