When you’re diving into the exciting world of brand-new homes, it might be tempting to skip hiring a Realtor. But trust me—a skilled advocate by your side is worth their weight in gold. From avoiding construction disasters to saving you thousands, I’ve got the stories to prove it.

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Blueprint Blunders: The Hidden Challenges of New Construction

“Oops, We Did That Wrong” – Catching Construction Mistakes

One of my clients had a builder tile the bathroom with grout lines that were wildly inconsistent—paper-thin in one area and over half an inch in another. When the building superintendent shrugged it off, I stepped in. By persistently advocating for my client, I negotiated $50,000 toward closing costs so they could redo that tile and any other tile in the home.

Another client’s walkthrough with a highly reputable semi-custom builder revealed even more surprises. The builder had assured us that everything on the inspection list had been completed—but when we showed up, not a single item had been addressed. Worse, the cabinet company had nailed trim into the cabinets, leaving sharp nails sticking out. If you rubbed your hand against the cabinets, you’d risk cutting yourself!

These errors can easily go unnoticed until it’s too late. With a Realtor on your side, you’ll have someone to call out these issues and negotiate a solution before closing.

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Charming Sales Reps vs. Fierce Advocates

“They Work for the Builder, Not You” – Advocacy When You Need It Most

Builders’ sales reps are charming and knowledgeable, but remember: they represent the builder, not you. Their job is to sell homes, not to advocate for buyers when something goes wrong. I’ve seen situations where the building superintendent dismissed my clients’ concerns outright or acted condescendingly when issues were raised.

In one case, a missing vent was brushed off as "unnecessary." After stepping in, I ensured the vent was installed correctly. With a Realtor by your side, you'll have someone who won't let critical details slip through the cracks.

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3. Upgrade Smarts: Resale Value Matters

“Spend Where It Counts” – Negotiating Resale-Value Features

Thinking about splurging on a fancy $10,000 front door? Hold up! Not all upgrades give you a good return on investment.

When building from the ground up, it’s easy to get carried away at the design center. That fancy $10,000 front door might seem like a dream now, but it likely won’t boost your home’s resale value. Now, you still may want to spring for it because you love it enough, but knowing all the facts may help you identify where you want to lean into design and spend your money, and where you might want to go with a lesser level of finish. A Realtor knows what buyers love (and what they don’t) and can guide you toward upgrades that boost your home’s value and where to save. For example:

• Worthwhile investments: Modern kitchens, energy-efficient features, and additional bedrooms.
• Less valuable upgrades: Niche design trends or overspending on luxury items buyers won’t notice.

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Why a Builder May Not Want You to Have a Realtor

Here’s the deal: some builders are awesome and understand the importance of representation for a buyer and that the process generally goes smoother, but others may have financial incentive for buyers not to have representation or to use those they recommend.

Why?

It makes their job easier. Without a Realtor, they can rush the process and avoid addressing issues you might not even notice. Having a Realtor means you’ve got someone fighting for your rights, your investment, and your future.

A Realtor levels the playing field, ensuring:

• Your rights are protected.
• Your investment is sound.
• Your voice is heard throughout the process.

A realtor can also negotiate on the price of the home, incentives, closing costs.

Sometimes, Builder Sales Reps Have a Point

Builders’ sales reps aren’t always against Realtors for bad reasons. Some have had negative experiences with agents who simply add their name to a contract without providing any real value to the buyer or the process. This can make sales reps understandably jaded.

But here’s the difference: A reputable Realtor does far more than just show up. They attend meetings, keep track of inspections, advocate fiercely for their clients, and ensure the process stays on track. Builders who value their reputation often appreciate working with skilled Realtors because happy clients lead to positive reviews, referrals, and future sales.

Of course, not every builder operates the same way. While some builders prefer and welcome realtors because they understand the process can go smoother, other builders may have financial incentives to avoid Realtor representation, and others may feel a skilled agent could make their job harder by holding them accountable. The bottom line? A good Realtor will always prioritize your interests, ensuring everything stays transparent and above board.

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Why That 'Base Price' Isn’t What You’ll Pay

Builders are masters of marketing, and their strategies are incredibly effective. But here’s the thing: the price you see on that shiny brochure or website often tells only half the story.

When you’re building a home from the ground up, the costs quickly add up:

• Structural Upgrades: Want a bay window or an extra sink in the bathroom? Those upgrades aren’t included in the base price.
• Lot Premiums: A better location or larger lot often comes with a hefty price tag. Premiums can range from $10,000 to $50,000—or more.
• Design Center Choices: Builders often showcase model homes with high-end finishes. But those finishes are likely upgrades. Even simple tweaks like upgraded tiles or extra outlets can cost tens of thousands of dollars.

For example, a home advertised at $500,000 could end up costing $660,000 after adding upgrades, lot premiums, and design center finishes. Builders design these options to give buyers what they want—but it’s all part of a business model that ensures they make a profit.

The Fine Print on Incentives

Builders often offer enticing incentives, like covering closing costs or giving design center credits, but there’s always a catch. These incentives are usually tied to using the builder’s preferred lender or title company, which helps them recoup those costs elsewhere. This isn’t “free money” but a strategic way to keep you within their ecosystem.

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Timing Is Everything—Start With a Realtor Early

"It’s Never Too Early to Call Your Realtor"

One of the biggest mistakes buyers make is waiting too long to involve a Realtor. If you’re already working with a builder, it’s often too late to bring in an agent. Why? The relationship between you and your Realtor must be documented in the builder’s contract. Without that agreement, the builder may not allow the Realtor to represent you, which means you’re navigating the process on your own.

Ideally, your Realtor should be involved from the very beginning—before you sign anything or even narrow down your builder options. Why? Because your Realtor can:

• Educate You on Builders: Agents have insider knowledge of local builders, their reputations, and which ones consistently deliver quality work with transparent practices.
• Help You Ask the Right Questions: Builders operate differently from resale transactions, and a Realtor ensures you’re asking the critical questions upfront.
• Clarity on Marketing Tactics: A great Realtor will help you understand what’s really included in the base price, how upgrades work, and whether the incentives truly save you money.
• Advocacy from Day One: From contract terms to upgrade negotiations, your Realtor ensures the builder’s contract includes fair terms, inspections are followed up on, and your interests are protected—keeping surprises at bay.

Starting with a Realtor gives you the best chance to avoid pitfalls, make informed choices, and get the representation you deserve.

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The Bottom Line: Build a Home, Build a Legacy

Be Informed, Be Empowered

Buying a new construction home is an exciting opportunity, but it can also be overwhelming. Builders are brilliant marketers, and costs can escalate quickly if you don’t know what to expect. Starting with a Realtor early ensures you have an advocate who sees the big picture, asks the right questions, and makes sure you’re protected.

This isn’t just about getting the home of your dreams—it’s about making smart decisions that set you and your family up for a legacy of empowerment and success.

?? Ready to take the first step toward building your dream home and legacy? Let’s make it happen together! Call us today!

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Looking for more real estate insights or ready to start your home buying journey? Connect with us at T. Kerr Property Group and Russ Phillips Team, where we help you build a legacy that empowers generations!

Call us today at: (512) 851-8350

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TL;DR

Using a Realtor for new construction protects your investment, helps you avoid costly mistakes, and ensures you’re making choices that boost resale value. Builders want their interests represented—make sure yours are, too.

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FAQs

1. Do I need a Realtor for new construction?

   Yes! They’ll advocate for you, catch mistakes, and help negotiate upgrades or concessions.

2. Who pays the Realtor’s commission for new construction?

   Generally speaking, the builder offers compensation for the buyers agent. (This is on a case by case basis and will need to be discussed with your agent.)

3. What happens if there’s a construction defect?

   Your Realtor can help you address issues and negotiate repairs or credits before closing.

4. Can I still negotiate with a builder?

   Absolutely! Realtors are skilled negotiators who can secure perks like closing cost credits or free upgrades.

5. What should I focus on at the design center?

   Opt Improving the most used areas of the home such as the kitchen and upgrading the things that are very difficult to Change after construction. For example, adding a media room later is going to be extremely difficult and costly so that structural change Would be worth doing carpet in the bedrooms instead of hardwood floors.

6. What if I’ve already started working with a builder?

   It’s not too late to bring in a Realtor—just check the timing and let them jump in.

7. Can a Realtor help with financing options?

   Yes, they can recommend trusted lenders and compare builder incentives to other offers.

8. What if the builder’s sales rep is helpful?

   They might be, but remember: they work for the builder, not you.

9. How can a Realtor assist with inspections?

   They’ll recommend independent inspectors to catch issues builders might overlook.

10. Is it better to buy an inventory home or build from scratch?

    A Realtor can guide you based on your timeline, budget, and goals.

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