Is it necessary to have your own agent when purchasing a new construction condominium?
There are two options. You can work with the sales staff directly or you can work with your own buyer's agent.
If you are interested in purchasing a new construction condo, for example, a unit in one of Mission Bay or South Beach's new developments, you can go directly to the sales office. The sales staff is hired and paid by the developer to sell their units.
Or you can choose to hire your own agent to represent you in the sale. The developer would still pay your agent part of the sales commission so either way, you would not pay for the agent's service.
So which is better? It may depend on your circumstances. However, the biggest difference is that the sales staff is paid by the developer to sell only that development. Your own agent will be paid to sell you a unit anywhere. The following are some more benefits of having your own buyer agent when purchasing a new construction condo.
Your buyer's agent should be an inventory expert, helping you compare your desired condo against all the options in San Francisco's condo market. They can provide insights into whether a particular building is a good value compared to others, taking into account factors like location, amenities, and price trends. Additionally, they can inform you about the reputation of the builder. Is this developer known for high-quality construction, or do they have a history of post-sale issues or litigation? This knowledge will ensure you make a well-informed decision, especially in a competitive market like San Francisco’s, where prices and demand can fluctuate significantly.
You’ll have an expert to contextualize your condo in relation to the broader market, so you don’t overpay or invest in a building with a poor track record. This protects your long-term investment and resale potential.
Beyond the initial purchase, your agent can assess how your condo will perform in the future resale market. For example, will the location and design of the condo hold its value, or is it more likely to depreciate due to oversupply or building reputation? With an experienced agent, you can anticipate the long-term value and potential for appreciation, helping you secure a condo that’s not only perfect for now but also a sound investment for the future.
An agent ensures your investment is future-proof, focusing on resale value and market longevity. This offers peace of mind for any future plans you might have.
Your buyer's agent is also your negotiator, and their market knowledge gives them the leverage to negotiate effectively. Whether it’s negotiating the condo's price, asking for fixture upgrades, or adjusting the timeline to suit your needs, a skilled agent can help ensure you get the best deal possible. They’ll know how eager the developer is to sell and whether the condo units are in high demand or not, which can provide you an advantage in negotiations.
Having an expert negotiator means you’re less likely to overspend or miss out on extra perks like upgrades, making sure your purchase is as valuable as possible.
Some condo units, especially in hot markets like San Francisco, may never be publicly listed. With a well-connected buyer’s agent, you may gain access to off-market listings or pre-construction units, giving you a competitive edge before the general public has access to them.
Access to exclusive listings and pre-market opportunities gives you an upper hand, allowing you to buy into the market before prices rise or options become limited.
Real estate transactions involve complicated paperwork, legal considerations, and compliance with local ordinances. A buyer’s agent takes care of the administrative and legal aspects of the purchase, ensuring that all documents are accurate and submitted on time. They also navigate any condo association rules and restrictions, making sure that you fully understand the terms of the contract before you sign.
You’re protected from legal risks and unnecessary delays. Your agent ensures that all the legal details are handled correctly, so your transaction goes smoothly.
A buyer’s agent works solely for you, not the seller. This means they are your advocate in every step of the buying process, ensuring your interests are prioritized over all else. They’ll provide personalized advice based on your preferences, needs, and long-term goals, making sure that every aspect of the transaction is tailored to your unique situation.
You have a trusted partner throughout the process who’s working entirely for your benefit, giving you confidence in your decision.
Real estate attorney and Chronicle columnist, Bob Bruss, has the following to say about buyer's agents for new construction. Read the article here.
