At new construction developments, it’s debatable who the on-site agent actually represents. Most new construction developments have model homes for buyers to view. At these model homes there is almost always an on-site agent, but why are they there?
This agent may claim to be the on-site “buyer’s” agent, but don’t be fooled! This on-site agent may not be the actual listing agent of the properties in question, but the on-site agent absolutely has a relationship with the listing agent as well as the developer. If you use this person to write your contract, you will at best end up in a non-agency situation, if not a dual agency one (see “Who’s Representing Me?”).
On-site agents are there to facilitate the sale of THAT development, NOT to advise you as their client. A true buyer’s agent is not only there to help you navigate the contract, but to help you evaluate the property in general. Do you really think that on-site agent is going to tell you about the development down the street that has better upgrades and sounder construction? Of course not!
Builders don’t use standard real estate contracts because they don’t want buyer’s to have the standard protections. Because you may not have all the standard exit strategies allotted in a normal contract, you NEED to have a separate third party help you review the contract. This should be a buyer’s agent that has absolutely no affiliation with the developer what so ever. Don’t get burned by using the on-site agent.
Buying a home will most likely be the biggest financial decision of your life, so make sure you have someone in your corner that truly has your best interest at heart. If you are thinking about buying your first home and would like to gather more information about the general process, please go to our Calendar/Reservations page and sign up for one of our FREE First Time Home Buyer workshops.
