Meet John, a seasoned sales consultant at Edworthy Homes. At 32, with 10 years of experience, two kids, and a genuine passion for his craft, John has spent a decade putting the right families in the right new homes.
On a Tuesday, a family walked into the showroom after spotting signs on their way home from the mall. John, well-versed in various sales methodologies, channeled his inner Jeff Shore that day. He dug deep into their motivations (why are you looking to buy a new home?), their current dissatisfaction (what’s not working in your current home?), and their future promise (what must your new home have?).
The family felt understood, even commenting on how refreshing the experience was. They hadn’t encountered such a thoughtful sales conversation before. John had heard this feedback many times—10 years of experience in new home construction will do that.
He continued guiding them through the showroom, aligning everything with the insights he’d gathered. They were clearly ready to buy. The mother mentioned they’d need to sort things out with the bank but promised to return in a few days.
Two days later, they did—this time with a realtor in tow.
John had been through this scenario countless times. A perfect sales experience, a solid connection, and then…a realtor. The realtor hung back, barely engaging in the conversation, often distracted by his phone. He stepped out for a call and only rejoined to hand over his contact information, mumbling something about being late for another showing.
1.2-1.8% of the new home’s sale price walked out the door with him.
A Message to New Home Buyers:
Did you know you don’t need a realtor to buy a new home? Many people assume it’s necessary, but in cases like John’s, do you really need one? If you’ve had a great experience with a knowledgeable, empathetic sales consultant in new home construction, would you still feel the need to bring in a realtor, given the sales consultant is well-equipped to guide you through the process?
There are pros and cons to using a realtor, especially in new home construction, and here’s a breakdown:
Pro: Realtors Understand the Resale Market—If They’re Good.
Meet Nathaniel Krieger, a friend of mine and a stellar realtor with just one year under his belt. Nathaniel loves helping people, making money, and taking care of his clients. He’s the kind of realtor who fights for a fair deal for both buyer and seller.
Nathaniel helped me buy my first home. After the inspection revealed an old clay sewage pipe with weeds growing through it, Nathaniel negotiated a price reduction. He also secured a more reasonable handover date and arranged an extra visit so my fiancée, who was away on rotation, could see the house.
Pro: Good Realtors Protect You from Bad Realtors.
Unfortunately, not all realtors are like Nathaniel. The bar to enter the real estate profession isn’t particularly high, so you get some just in it for a quick buck. In Calgary alone, there are nearly 10,000 realtors for a population of 1.5 million—that’s one realtor for every 150 people! A good realtor will educate you, point out the pros and cons of different homes, and ensure you’re making the best decision for your needs and goals.
Con: Bad Realtors Exist.
Enough said.
Con: You Might End Up Paying More.
Realtors earn commissions on the final sale prices of properties. So, you may pay more for new home construction than if you work directly with the sales consultant.
When You Might Not Need a Realtor in New Home Construction:
If you’re like the family in John’s showroom, buying a new home—whether pre-sold, personalized, or a spec home—homebuilders work hard to provide you with a move-in-ready product, complete with warranties. The need for negotiation is minimal.
Homebuilders invest millions annually in training their sales reps to be trusted advisors who can guide buyers through every step of the process. Companies like Trico, Hopewell, Excel, Hartford, and Jayman have some of the most empathetic and knowledgeable advisors in the industry. Our advice? Lean into these resources rather than spreading yourself thin.
Trust in Technology:
At OpenHouse.ai, our buyer software, OpenConnect helps buyers who know what they’re looking for find it efficiently without jumping through hoops. OpenConnect allows buyers to be listened to. It asks buyers questions, captures their motivations and dreams, and provides them with a personalized set of listings catered to their needs. Embrace technology—it could change your new home-buying experience for the better!
When People Say You Need a Realtor—But You Might Not:
Language barriers? Homebuilders often have sales representatives who speak multiple languages and understand cultural nuances. Give them a chance to meet your needs before turning to an external realtor.
Discover how OpenConnect can transform your business. Schedule a discovery call today.
Realtors can be invaluable, but if you don’t need one, why use one? You wouldn’t bring an external salesperson to a new car dealership, so why do it when buying a new home?
