It is possible to buy a home directly from a builder without using a realtor, but doing so requires careful planning and understanding of the process. While skipping a realtor can save on commission fees, buyers assume more responsibility for negotiations, legal documentation, and ensuring fair pricing. Knowing the steps involved and potential risks will help you navigate the process effectively and make informed decisions.
Pros and Cons of Buying Without a Realtor
Buying from a builder without a realtor can have several advantages. The most obvious is potential cost savings. Buyer’s agent commissions are typically around 2.5% of the purchase price, so not using a realtor could save tens of thousands of dollars depending on the property. Additionally, some buyers prefer direct communication with the builder to discuss options, upgrades, and timelines without intermediary influence.
However, there are also risks. Builders’ sales representatives are trained to maximize profit for the builder, not the buyer. Without a realtor advocating for you, it may be harder to negotiate upgrades, incentives, or price reductions. Legal documents and contracts can be complex, and mistakes or misunderstandings can lead to costly problems.
Steps to Buy from a Builder Without a Realtor
- Research the builder’s reputation, past projects, and customer reviews.
- Attend show homes or model units to evaluate quality and options.
- Review the contract carefully, including standard inclusions, upgrade costs, deposit structure, and completion timelines.
- Hire a real estate lawyer to examine the contract, verify warranties, and ensure compliance with local laws and regulations.
- Negotiate price, upgrades, or incentives directly with the builder.
- Complete inspections or third-party evaluations, especially for structural quality and finishing.
Potential Savings Across Greater Vancouver Cities
The following table estimates potential savings when buying directly from a builder without a realtor, based on typical buyer’s agent commission percentages:
| City | Average New Home Price | Estimated Buyer’s Agent Commission | Potential Savings Without Realtor |
|---|---|---|---|
| Vancouver | $1,200,000 | $30,000 | $30,000 |
| Burnaby | $1,000,000 | $25,000 | $25,000 |
| Richmond | $1,150,000 | $28,750 | $28,750 |
| Surrey | $950,000 | $23,750 | $23,750 |
| Coquitlam | $1,050,000 | $26,250 | $26,250 |
| North Vancouver | $1,300,000 | $32,500 | $32,500 |
These figures show significant potential savings, but buyers must weigh these against risks such as lack of market advice, negotiation leverage, and legal oversight.
Additional Considerations
Even without a realtor, it is highly recommended to engage a real estate lawyer to handle contracts and due diligence. Carefully reviewing the builder’s documentation, understanding the warranty, and clarifying any hidden fees are critical steps. Buyers should also consider timing, as new home projects can involve waiting periods and phased occupancy schedules.
Conclusion
Buying a home directly from a builder without a realtor can save money and provide direct control over upgrades and options. However, it requires a strong understanding of the process, careful review of contracts, and professional legal support to avoid costly mistakes. For Greater Vancouver buyers, potential savings are substantial, but balancing risk and reward is essential for a successful transaction.
For more guidance on property costs and planning your purchase, visit Renting vs Buying in Vancouver and Home Cost Calculator.
My name is Jay, a longtime Metro Vancouverite sharing local real estate tips and my own photos of the city’s homes and neighbourhoods here on Vancouver Home Hub. Hope you find my blog useful! Feel free to reach out anytime at vancouverhomehub@gmail.com if you have questions.
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