If you are in the market to buy a house, one of the first things you will probably do is check out all the new construction in the area. Studies show that, given their "druthers", most people would rather buy a brand new home than purchase a resale. Like a new car, a new house has a special feeling attached to it, right down to that 'new house smell'.

The average couple begin shopping for new construction in this way: they buy the Sunday newspaper, circle all the big ads, climb into the car, and plan a day of visiting sample homes. They are excited and in high spirits. After all, this is going to be great fun!

They drive up to the first sub-division. (Finding the sample home in one of these developments is never difficult. You just look for the flags in the driveway, the sign on the lawn, and thousands of dollars in professional landscaping.) They pile out of the car, go through the door, and are greeted by an attractive, smiling salesperson.

"Just looking," they tell the Builder's Representative.

"No problem," says the salesperson. "If you'll simply register here, I'll give you a brochure, and point you in the right direction."

They dutifully fill out the registration form, get the brochure, and tour the house. More likely than not, to exit the sample home, they have to go right back past the Builder's Representative. The salesperson, still smiling, stands ready to answer any and all questions they may have.

If the home they saw holds any interest for them, they will probably view the plot plan. The salesperson points out which lots are still available, which have premiums, and which are ready for immediate delivery. He or she will sincerely confide to our couple that a small, totally refundable, deposit will "hold" the lot they like best. This will give them a chance to think about it, without running the risk of someone else grabbing "their" lot.

The couple, feeling very comfortable with this pleasant and non-aggressive salesperson, and very appreciative of the special "insider-information" about the lot, decides to leave the deposit.

After all, they have nothing to lose and everything to gain, right?

Wrong.

What the couple did when they first walked in and registered was to sign away their opportunity to have their own agent represent them if they buy from that builder - with the builder footing the Wayne for that representation! When they left the deposit on the lot, they further sealed their fate.

Here's the truth that builders hope you never discover:

In today's competitive market, most developers realize that the buyer for their home may already be working with a real estate agent, and THEY BUILD A COMMISSION FOR THE AGENT INTO THE SALES PRICE OF THE HOME. That's right, the commission to pay YOUR agent is ALREADY figured into the price that the salesperson quoted you. And the house is the SAME price, even if you walk into the sample home all by yourself, without an agent.

How much money are we talking about? Well, if a house is $200,000, the builder may be offering anywhere from 2%, to a full 6%, for the agent who brings a buyer. That's $4,000 -- $12,000 that you are going to pay, whether an agent represents you or not! What happens to all that extra money if you walk into the sample home yourself, as the couple above did? You guessed it, the builder keeps it!

And that is not even the WORST part. While you are going to pay that extra money even if you do not have representation, the risks you run by just having the Builder's Representative "take care" of everything could end up costing you a whole lot more!