New construction can be intimidating for buyers — and surprisingly unfamiliar territory for agents, Roxanne Hale writes. Here’s how to make sure you’re actually adding value when you walk through that model-home door.

You pull into the pristinely manicured community, gliding past cheerful signage with names like Whispering Pines, Creekstone Meadows or The Villas at Something Fancy.

The landscaping is immaculate. There may be soft jazz playing from an invisible speaker. The trees practically wave at you politely.

Welcome to the builder’s model home — the Domestic Disneyland of Dreams.

Inside, it smells like Restoration Hardware and fresh lemon water. The model is flawless. The kitchen island is roughly the size of Rhode Island. The pillows have never been sat upon by an actual human being.

And before your buyer has made it past the foyer, someone is talking about lot premiums, structural options, design selections and the virtues of Elevation C.

For buyers, it can be intimidating, but here’s something we don’t talk about enough: It can be intimidating for their agents, too.

If most of your business is resale, walking into a builder’s sales center can feel like entering a completely different branch of real estate. The contracts are different. The process is different. The incentives are different. And the person sitting across the desk does this particular transaction all day, every day.

That’s exactly why your buyer needs you there.

5 tips for working with a new-construction buyer

1. Know your role — and theirs

The onsite sales professional can be an incredible resource. They know the community, floorplans, available homes, construction schedules and builder better than anyone.

But they represent the builder. You represent the buyer.

That distinction doesn’t require an adversarial relationship. In fact, some of my best new-construction transactions happened when the onsite agent and I worked exceptionally well together.

Our jobs are simply different.

They explain what the builder offers. I help my buyer determine whether what the builder offers makes sense for them.

2. Don’t let the model do all the selling

Models are supposed to be beautiful. That’s their job. They also tend to showcase structural options, upgraded finishes, premium lighting, elaborate outdoor spaces and more decorative millwork than a Victorian library.

Your job is to help separate the house they’re touring from the house they’re actually buying.

Ask for the included-features list. Identify structural upgrades in the model. Find out which selections are standard and which came from higher design tiers.

Otherwise, your buyer may fall in love with a $650,000 model and discover they’re actually buying the $525,000 version of it. That’s an awkward conversation to have after they’ve mentally moved in.

3. Learn which decisions can’t be changed later

Not all upgrades are created equal. A buyer can change a light fixture later. They can replace cabinet hardware. They can survive without the statement chandelier.

Moving a wall is considerably more complicated, if the builder will even do it at all.

Help buyers think first about structural decisions: additional square footage, covered outdoor space, windows, garage configurations, additional bedrooms, plumbing locations or other options that would be expensive — or impossible — to recreate later. Then they can argue about backsplash tile.

This is also where an experienced agent can add resale perspective. Your buyer may plan to live there forever, but it’s always nice to have an exit strategy if you need it.

4. Pay attention to the lot

Buyers understandably focus on the house. Agents need to look beyond it.

  • What’s behind the homesite?
  • What could eventually be behind it?
  • Where are the retention areas?
  • How does the lot slope?
  • Where will neighboring homes sit?
  • Which direction does the backyard face?

That premium lot may absolutely be worth the premium, or your buyer may be paying $25,000 for something the next buyer won’t particularly care about.

The prettiest floorplan on the wrong lot is still on the wrong lot.

5. Understand the builder’s process before you start negotiating it

Resale habits don’t always translate neatly to new construction.

Builders may have preferred lenders, special incentives, deposit requirements, construction milestones, change-order policies and deadlines for structural or design selections. Inventory homes may be treated differently from to-be-built homes. Negotiability can change depending on the builder, community, phase and even the particular homesite.

Before marching in ready to “get your buyer a deal,” understand the deal that’s actually available. Sometimes the best value isn’t a price reduction. It may be closing costs, financing incentives, design allowances or an inventory home the builder would particularly like to move.

Ask first. Strategize second. And please, go with your buyer. This sounds painfully obvious, but buyers wander into model homes all the time.

“We were just looking” are four words that have launched a thousand commission disputes.

Builder registration and broker-cooperation policies vary, so know them before your buyer visits. Tell buyers early in the process: If you see balloons, flags and a “Model Home” sign, call me before you go inside.

Better yet, go with them.

Not because they can’t tour a house without you. Because this is one of the moments when a good buyer’s agent gets to demonstrate exactly why we’re there.

Working with a new-construction buyer isn’t about memorizing every floorplan, option code or construction term. You don’t have to know everything the onsite agent knows. You need to know your buyer.

Ask the questions they don’t know to ask. Help them distinguish emotion from value. Keep one eye on today’s choices and another on tomorrow’s resale.

And if everyone survives the design center without spending $4,000 on a chandelier? Consider that a professional victory.

Roxanne Hale is the associate broker of the Art House Team, Brokered by RealtySouth in Birmingham, Alabama. Get connected on Facebook or YouTube.

Show Comments Hide Comments
Sign up for Inman’s Morning Headlines
What you need to know to start your day with all the latest industry developments
By submitting your email address, you agree to receive marketing emails from Inman.
Success!
Thank you for subscribing to Morning Headlines.
Only 3 days left to register for Inman Connect Las Vegas before prices go up! Don't miss the premier event for real estate pros.Register Now ×
Limited Time Offer: Get 1 year of Inman Select for $199SUBSCRIBE×
Log in
If you created your account with Google or Facebook
Don't have an account?
Forgot your password?
No Problem

Simply enter the email address you used to create your account and click "Reset Password". You will receive additional instructions via email.

Forgot your username? If so please contact customer support at (510) 658-9252

Password Reset Confirmation

Password Reset Instructions have been sent to

Subscribe to The Weekender
Get the week's leading headlines delivered straight to your inbox.
Top headlines from around the real estate industry. Breaking news as it happens.
15 stories covering tech, special reports, video and opinion.
Unique features from hacker profiles to portal watch and video interviews.
Unique features from hacker profiles to portal watch and video interviews.
It looks like you’re already a Select Member!
To subscribe to exclusive newsletters, visit your email preferences in the account settings.
Up-to-the-minute news and interviews in your inbox, ticket discounts for Inman events and more
1-Step CheckoutPay with a credit card
By continuing, you agree to Inman’s Terms of Use and Privacy Policy.

You will be charged . Your subscription will automatically renew for on . For more details on our payment terms and how to cancel, click here.

Interested in a group subscription?
Finish setting up your subscription
×