New Construction Pitfalls: Why Buyers Need Their Own Agent
A real estate expert warns that buyers of new construction homes face risks from builder-aligned sales reps, hidden defects, and fine-print incentives, emphasizing the need for independent representation to protect their interests.
Walking into a new construction sales office without your own agent might feel welcoming, but it could cost you. According to Yitzchak Pierson, a licensed real estate broker with eXp Realty in New Braunfels, Texas, the sales representative works for the builder, not the buyer. This distinction, he says, shapes every decision from the moment you step onto the lot.
"The builder’s rep wants to close the deal, hit their sales targets, and move inventory," Pierson explains. "Your job, as a buyer, is to get the best possible home at the best possible price, with protections built into the contract, inspections completed properly, and every concern addressed before closing. Those are two very different objectives, and one person cannot serve both."
A common misconception is that bringing a buyer’s agent adds cost. However, Pierson notes that in most new construction transactions, the builder pays the buyer’s agent commission. "Choosing to go without representation does not save money. It just removes someone from the table whose entire focus is on protecting your interests," he says.
Another costly mistake is skipping a third-party inspection. New construction homes can have defects ranging from drainage issues and framing gaps to HVAC problems. Pierson stresses the importance of a pre-drywall inspection to examine framing, wiring, and plumbing before walls go up, as well as a final walkthrough. "Experienced buyers agents know to push for in-person walkthroughs rather than virtual alternatives," he adds, noting that physically walking the home and placing blue tape on imperfections is crucial.
Builder incentives, such as rate buy-downs and closing cost credits, are attractive but often require using the builder’s preferred lender. Pierson warns that buyers may be rushed through paperwork without fully understanding terms. A good buyer’s agent can push back, ensuring the client has time to review documents.
Agents with a track record of working with specific builders can also leverage relationships to benefit buyers. "Getting the construction manager’s direct number to ask about drainage on a specific lot or getting detailed answers about survey data before going under contract are things that become possible," Pierson says. These relationships can help address concerns that a one-time buyer might struggle with.
"New construction offers real advantages, but the process is more structured and builder-centric than many buyers expect," Pierson concludes. "Having someone who understands the timelines, knows the process, has relationships, and is unambiguously on the buyer’s side is not a luxury; it is the only logical approach."