The Building Texas Show

New Construction Home Buyers Risk Pitfalls Without Agent Representation, Expert Warns

By Building Texas Show
Real estate professional Yitzchak Pierson warns that buyers of new construction homes who forgo their own agent may face disadvantages, as builder reps prioritize closing deals over buyer interests.

Found this article helpful?

Share it with your network and spread the knowledge!

New Construction Home Buyers Risk Pitfalls Without Agent Representation, Expert Warns

New Braunfels, Texas – New construction homes offer modern amenities and attractive incentives, but buyers who walk into a sales office without their own representation may be walking into a trap, according to real estate professional Yitzchak Pierson of eXp Realty in New Braunfels, Texas.

Pierson, who has closed over 120 new construction transactions, cautions that builder sales representatives are not the buyer's ally. “The builder’s rep wants to close the deal, hit their sales targets, and move inventory,” he said. “Your job, as a buyer, is to get the best possible home at the best possible price.” These conflicting goals often leave unrepresented buyers at a disadvantage.

Many buyers mistakenly believe that skipping an agent saves money. In reality, the builder typically pays the buyer’s agent commission. “Choosing to go without representation does not save money. It just removes someone from the table whose entire focus is on protecting your interests,” Pierson explained.

One critical area where representation matters is inspections. New construction homes are not immune to defects. Issues such as drainage problems, framing gaps, and HVAC faults can arise. Pierson emphasizes the importance of third-party inspections, including pre-drywall inspections that examine framing and wiring before walls are sealed. “Once the drywall is in, that window closes permanently,” he said.

Builder incentives, such as rate buy-downs as low as 4.25 percent, often require using the builder’s preferred lender. This can lead to a rushed process where buyers sign documents without full understanding. A buyer’s agent can push back, ensuring the client has time to review paperwork and request in-person walkthroughs rather than virtual alternatives.

Experienced agents also bring established relationships with builders. “Getting the construction manager’s direct number to ask about drainage on a specific lot” or knowing which concerns the builder will address without hesitation are advantages that come from repeated transactions, Pierson noted.

The bottom line, according to Pierson, is that new construction offers real advantages, but the process is builder-centric. “Having someone who understands the timelines, knows the process from contract to close, has relationships with the right people, and is unambiguously on the buyer’s side is not a luxury in that situation. It is the only logical approach.”

For more insights, visit Yitzchak Pierson's website.

Building Texas Show

Building Texas Show

@buildingtexasshow

The Building Texas Show with host, Justin McKenzie, where he talks about the balance of business and governance and growth across Texas. We will interview the local leaders affecting the issues, business owners creating momentum and founders who are working to change the world, and inspire you to uncover the power you have to forge the future.