Do new home builders discourage buyers to work with real-estate agents?

Question

My wife and I are looking at new and used homes and when we talk to new home builders, they all kind of flinch when we tell them we have an agent.

Answer 1

Some will. The builders usually have the Realtor commission built into the price of the house. (they will not give it to you for cutting out your Realtor) Sometimes, the site salesperson will make a bit more money when they can cut out the Realtor - also, some site salespeople have a friend or relative who's a Realtor, and they'll put their relative on the contract as your Realtor.

When the builder himself is trying to keep out the Realtors, it could also be because their product doesn't compare well to what else is on the market and they need for you not to get good advice.

Don't cut out your Realtor. For one thing, they're doing the job of teaching you the market and showing you the pros and cons of what's out there - so it wouldn't be fair to them. But also, the builders often send information to the Realtors about discounts and incentives for the buyers that they don't tell the "walk-ins". ...Why give away the incentives if they already want the house?

Good luck in your home search.