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What is the job of a builder’s on-site sales agent?
Homebuilders have made it amazingly easy to
choose, build, buy and enjoy a brand-new home. When you visit a builder’s
model park to view new homes and find one you like, what happens next? Who helps you with the process? Enter the builder’s in-house on-site sales agent and your Realtor
®.
Most homebuyers don’t know you can work with both your Realtor
® and the builder’s on-site sales agent. When you bring your Realtor
® to work with you, you can either bring them in as a
Buyer’s Agent, which we’ve previously written about, or they may co-broker the deal with the builder’s on-site sales consultant also sometimes referred to as on-site sales agent or builder’s representative. For our post today we will be referring to the builder’s sales staff as on-site sales agents.
To get the full scoop on who does what, why and when, we asked several Charleston area builders’ on-site sales agents and Realtors
® about their roles in the homebuying process for further insight. You may find their guidance helpful, so you know who does what when it comes to guiding and assisting you in your new home purchase. Below are answers to our questions.
Q: What is a builder’s on-site sales agent?
“A builder’s on-site sales agent is an on-site community sales representative for the builder who assists home buyers with the purchase of a new construction home,” says Alexandra Boineau who works for the PulteGroup representing both
Centex and
Pulte Homes.
Marta Perez, an on-site sales agent with
Lennar, expands on this definition by noting that a builder’s agent “is a licensed real estate agent who works for a specific builder.” This means that the builder’s on-site sales agent is bound by the same laws and
South Carolina Realtor® Code of Ethics which all real estate professionals are sworn to uphold. The code specifically says that these trusted agents must treat all parties honestly, no matter whether the party is a buyer or seller.”
Q: What is the role of an on-site sales agent and how do you help home buyers?
“My job is to orient the buyer with us as a builder; explain what makes us and our homes the best; explain the build process, and help buyers determine what floor plans and features work best for them,” says Bridge Gill an on-site sales agent for Toll Brothers.
To break down the steps of assisting you a little further, Ms. Boineau explains, “My role as an on-site agent is to be an “expert” on the community and the homes for which I am selling. I assist buyers from their first community visit through to the closing of their new home. This includes helping to identify a floor plan and home site that best fits their needs, assisting with the purchase agreement process, and working as a team with our Field Manager throughout the construction of their new home.”
The roles of both a builder’s on-site sales agent and a Buyer’s Agent are important. From the point of view of Ms. Boineau, “As a builder representative, we are very knowledgeable about the community, the floor plans, the features of the home, and the construction process. A Realtor
® working with a homebuyer is going to be very knowledgeable about the buyer’s needs and criteria, so we work in partnership with the Realtor
® to make sure the buyer has a great experience throughout the process.”
Q: How does your Realtor® work with both you and the on-site sales agent during construction?
After a contract is signed and construction has begun, your builder’s on-site sales agent will keep you updated on the progress of construction. Your Realtor
® will help you get the answers to any questions you may have and will also facilitate communication when needed. Some Realtors
® may even accompany you when you go for your design center appointment.
Realtor
® Jennifer Pratt with eXp Realty sees her involvement during this period as “helping the communication flow between builder and buyer and answering questions for the buyers.” She continues by pointing out that she is “instrumental in helping to get pre-drywall and final outside inspections completed” if the buyers want them. And at the end of the construction process she may “help get things completed and help to correct things ‘not quite right’ that can happen when finishing up a home.”
Tom Tillery Realtor
® with Carolina One adds “as the homebuyer’s hired Realtor
® I will attend all inspections, walk throughs and even accompany the buyers with their home selections if needed. I will also discuss and try to rectify any concerns the buyers may have during the building process. “
Q: How does the role of on-site sales agent differ from a non-builder agent / co-op Realtor® working with the buyer?
Builder’s on-site sales agent Mr. Gill says, “A co-op Realtor
® has a fiduciary relationship with their client, whereas the buyer is my customer. The builder is, in effect, my client although I do not maintain an agency relationship — rather I am an employee. It is important in this relationship to explain to buyers that I am not, and cannot be, their representative,” as he points out the legal and technical differences in the roles.
As explained by Ms. Boineau, “As an on-site sales agent, we are representing the builder (the Seller), whereas a co-op Realtor
® is representing the buyer in the transaction. A Realtor
® representing a buyer is acting as the agent on the buyer’s behalf to promote the buyer’s best interests.”
Q: Why do you think a buyer should work with a Realtor® in addition to an on-site sales agent?
Ms. Pratt with eXp Realty boils it down to the simple statement, “The co-op agent is there to advocate for the buyer’s needs and help give advice and counsel to the buyer.”
Ms. Pratt points out that all parties need to “have representation throughout the process.” In her opinion, “You wouldn’t want to go into a courtroom using the same lawyer as the other side…same here.”
All the real estate professionals we talked with told us that as a buyer, it’s your responsibility to disclose to the builder’s on-site sales agent
your relationship with a Realtor® when you initially visit the neighborhood and sales center. Disclosing this relationship early in the process makes it clear who is working together. In fact, it’s best to bring your Realtor
® with you when you tour neighborhoods. Their knowledge of each builder, communities and local rules and regulations will save you many questions and time.
Q: What value or services does the builder’s on-site sales agent add to the relationship when working with an outside co-op Realtor®?
“We walk every customer through a very detailed process. From discovering their reason for moving in the first place, their needs and wants, to finding the perfect home site, floor plan and options for their new home,” explains Ms. Perez.
Q: If the buyer is not working with an off-site co-op Realtor®, will the builder reduce the purchase price?
“We do not change our pricing if a buyer does not use a Realtor
® to represent them in the purchase of their new home. We greatly value our Realtor
® relationships and encourage buyers to have a Realtor
® representative to assist them with their purchase should they want representation,” says Ms. Boineau.
Some people may think that if they use only the builder’s on-site sales agent, they will get a reduction in price, however, all the parties we spoke with said that there is no builder who does this and to do so is unethical.
Ms. Pratt tells us, “the price of a new construction home ‘to be built’ is non-negotiable since it will be a custom home with the choices and tastes of the client. Sometimes upgrades or appliances can be negotiated by the buyer’s agent for the client. With a
spec home, however, the price can oftentimes be negotiated as well by the buyer’s agent.”
To clarify Carolina One Realtor
® Tom Tillery “if the buyer wants representation during the homebuying process, the agent can only assist the buyer after signing a Buyer’s Agreement stating the Realtor® is representing the buyer to the standards listed in this agreement.” He puts a finer point on this, “If I am not acting as their Buyer’s Agent, I cannot negotiate with the co-op Realtor
® because I will be representing the builder. This is fully explained in the South Carolina Buyers Agency Agreement. If the buyers are my clients, I will ask what incentives are being offered by the builder and if the price is at all negotiable.”
Q: Should I worry about conflict of interest between the on-site sales agent and my Realtor®?
As a buyer, you are most likely concerned about conflict of interest if the builder is paying a fee to both your Buyer’s Agent and their on-site sales agent. Mr. Gill answers from his perspective as an on-site sales agent and tells us that he is “bound by law to present all offers in a timely manner, account for money and other property received on the buyer’s behalf, provide an explanation of the scope of services to be provided, be fair and honest and provide accurate information, provide limited confidentiality, and disclose material adverse facts about the property or the transaction that are within my knowledge.”
Q: When it comes time to close the sale of the house, how does the on-site sales agent help the buyer?
“As closing nears, we work with our Closing Department, Field Manager, the lender, and Realtor
® to assist buyers with the final steps to closing,” says Ms. Boineau.
Ms. Perez explains further the intricacies of her job when closing is nearing, “We work very closely with lenders, builder, closing attorney and customer to make sure everything is aligned and on track for a smooth closing.” Her job doesn’t end after closing either, she told us, “After closing we stay in touch and follow up with our customers to make sure their home is meeting their expectations.”
Q: What should I expect from my Buyers Agent Realtor® when it comes time to close on my new home?
Your agent will help you understand the closing statements and will direct you to the right people to get answers regarding your mortgage, and legal process of the closing. If the Realtor
® you’re working with is not contracted to you to be a Buyer’s Agent, he or she may not attend your closing says Mr. Tillery.
Q: Builder’s on-site sales agents and Realtors® agree, you’re the focus.
Because you’re the center of the process when it comes to purchasing a new construction home, everyone, no matter their affiliation cares that you experience the best process, get the house you want and have superior communication throughout the entire construction process. Both are on “Team Buyer” and encourage you to speak with each of them to get the information you need when you need it.
Charleston New Homes Guide is your complete resource for finding your new home. Our website offers you the tools to identify builders, neighborhoods, and homes. We also have available to you many
insightful blog posts and a
library of articles on the benefits of buying a new home, how to research new homes, the buying and building process of a new home and so much more.
Additional articles on the full spectrum of buying a new construction home:
For more about the time involved to purchase a new home, read How Long Does it Take to Buy a New Home? Here’s a Timeline
For more about getting pre-qualified to purchase a new home, read What does it mean to pre-qualify for a new home?
For more about what to ask when touring a model home, read Questions to Ask When Touring a ModelHome
For more about Working with your Realtor® when purchasing a new construction home read our article on the topic.
For more about what to expect after signing a contract to purchase a new home, read What to Expect After You’ve Signed a Contract
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