If I’m Buying a New House From a Builder, Do I Need a Realtor?

It is always important for Buyers to have their own representation. It can be argued that a Builder will be looking after their own interests above the interest of the Buyer. Builders are not held to the same degree of disclosure as Realtors are. For example: a Builder’s site plan may show an area as ‘Future Residential’. However they may elect to not disclose what the zoning of that site is. A Buyer may be really excited to purchase a massive large pie shaped lot backing onto ‘Future Residential’; only to find out 2 years later that the Future Residential is a high-rise building. Imagine the shock! Or, the Buyer may not be aware that the nearby 2 lane road is about to become a 4 lane arterial road.

The Buyer’s Realtor has a fiduciary responsibility to inform their client of recent comparable sales in the area and will guide them through the forms that Builders prefer to use. Their Realtor will also guide them on their choice of lots to build on and will research the area for known future development plans or past unpleasant designations such as flood land. Some lots may be more favourable than others – especially with regard to reselling.

Finally, in the negotiation process, a Buyer is best served if they have a Realtor on their team!

Have a great week!

Cheers, Ken

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