Home Builder Facts

“WHAT?!?  The builder didn’t tell me that!”

We’re not here to criticize home builders—we love working with them! However, many people aren’t aware of how builders and REALTORS® work together, which can lead to misunderstandings. Often, buyers visit a model home, meet with the Sales Counselor, choose a house, and then go on autopilot until the home is completed. But it’s during this “autopilot” phase when issues can arise.

A common complaint we hear is, “The Builder didn’t tell me that!” One example involves mortgage payments. Some builders calculate initial payments based only on the land’s tax value, without the house included. A year later, when the county adds the house to the tax value, property taxes increase, causing mortgage payments to rise significantly. Suddenly, homeowners find themselves saying, “I can’t afford my mortgage!”

Another issue is home inspections and repairs. Remember, the Sales Counselor represents the builder, not you. When buyers ask if they can hire their own inspector, the Sales Counselor might say, “You can, but you don’t need to—we have our own inspector.” The problem is, that inspector works for the builder. Having your own inspector ensures an independent evaluation of the home’s condition.

Buying a home is likely the biggest financial investment you’ll make. That’s why it’s crucial to have your own representation. A REALTOR® works on your behalf, protecting your interests. Most REALTORS® don’t charge upfront fees, and many builders already set aside funds to pay buyer’s agents, whether you use one or not. Choosing not to hire a REALTOR® won’t lower the builder’s price; it simply means the builder keeps that money.

Here’s another “The Builder Didn’t Tell Me That” example: When your home is complete, the builder will schedule a walk-through before closing. This is your chance to identify flaws or items that need repair. While most issues are minor and easy to fix, if you’re not familiar with home construction, you might miss important details. This is why we recommend hiring your own inspector. Even in a brand-new home, an inspector can find issues you might overlook.

If you decide to tour model homes without a REALTOR®, you’re taking a risk. Builders will have you sign a registration card, and if you leave the REALTOR® section blank, they know you have no representation. If you have a REALTOR® but still want to tour a model home on your own, be sure to add your REALTOR’S® name on the builder’s registration card and let your REALTOR® know about your visit. This small step protects you and ensures you have representation throughout the entire building process. It’s your right as a homebuyer!

Texas law requires all real estate license holders to provide the Information About Brokerage Services to all prospective clients. TREC’s Consumer Protection Notice.