Do I need a buyer's agent for new construction?

Ahh, new construction! The smell of new paint, gleamig counter tops, and knowing you are the first to live there. What a feeling! And since everything is new, and you are going directly to the builder, you don't need a real estate agent, right? Maybe but could a Long Beach real estate agent actually help you with the builder? Let's see.

Here are some of the common ideas that I have heard of why you would not use a buyer's agent because you are purchasing from the builder:

1. Since I am dealing with the builder directly they can just reduce the price because I don't have an agent
2. I don't have to worry about anything because it's all new so what would the real estate agent do anyway
3. Isn't the sales rep at the builder going to watch out for me anyway?

I definitely feel all of those are valid as I have personally spoken to buyers who have said them. Let's take each one so you can see if you really do need a buyer's agent to help you.

1. The builders now have factored in the buyer agent commission into their pricing and if they don't have to pay a buyer's agent then they get to keep a little extra money for themselves, but they don't reduce the price. Large builders like Lennar and Olson Company have great standards in place and recognize that the real estate agents bring great buyers and they don't like to "step on their toes" by telling people "if you just didn't have an agent we could save you 3%" because then agents wouldn't want to bring buyers by. Smaller builders (like those who do condo conversions) might reduce the price if you don't have an agent so you could save there, but be warry :)
2. Even those it's all new you might want an extra pair of eyes to look at the property you are purchasing so you can get flaws corrected. A buyer's agent can also help you determine which floor plan is best and might have the best re-sale based off of location in the building. It may not always be the most expensive unit that is the best as usually if you walk through some units you can find some great values by checking out some of the different floor plans. A buyer's agent can give you the experience of walking through thousands of properties to help you choose the one that is the best fit for you and long term value.
3. There are some wonderful builder sales representatives out there who do a great job helping buyers at their developments. They are though contracted by the builder so their primary duty belongs to the builder, not to the prospective buyer. In fact their contracts often state that the buyer does not have a representative so the buyer is reponsible for their own due diligence.

So you don't really have to have a buyer's agent, but they can help you over come some hurdles. I just recently helped a buyer purchase in a new development here in Long Beach and I corrected 3 mistakes on the builder contract prior to him signing.

Whatever you decide make sure you get the help you need as purchasing a new property isn't free of challenges, but rest assured you will be the first one who gets to live there!