When buying a property, one of the first decisions you must make is whether to purchase it from a real estate developer or an agent. Both parties are integral to the real estate market, anywhere in the world. However, their approach and responsibilities differ significantly.

Continue reading as this blog explores the differences between buying a property from a property developer versus a real estate agent.

Who is a Real Estate Agent?

Also known as realtors or brokers, an agent serves as an intermediary between sellers, developers, and buyers. Their primary role is to ensure smooth transactions between both parties.

Who is a Real Estate Developer?

These are individuals who build properties, but their roles are not limited to construction activities alone. They also sell, promote, and market properties that they have developed.

There are significant differences between how developers and agents operate. These are some of the crucial differences –

• Condition: As a buyer, you will generally buy a fresh, newly constructed property from a developer. Real estate agents sell first-hand and resale properties.
• Price: Since there is no intermediary between the buyer and the seller, it is cheaper to buy directly from a property developer. Buying from an agent can be costly due to commissions and other additional fees. However, under certain situations, authorised channel partners can bring some exclusive deals that are not available in the market.
• Personalisation: In contrast to buying from a real estate agent, when you buy from a real estate developer, you can tailor the property to your liking and lifestyle. You can customise the flooring, ceiling, fixtures, countertops, cabinet colours, and layout when buying in the construction phase.
• Incentives: When you buy a property from a developer, you can take advantage of discounts, negotiate on the closing costs, or get upgrades, etc. These are various deals that builders offer buyers to attract them.
• Choices: Property builders offer limited choices to buyers in a given area, while real estate agents can provide multiple listings in a given area. Additionally, there are options for listings in other places, not limited to one builder’s construction style.
• Negotiation: Professional real estate agents have the expertise and experience to bring better negotiated deals to the table. This could be related to price, closing dates, etc.
• Handle the Paperwork: Most real estate agents handle the intricate documentation work and guide you in avoiding common pitfalls. However, in recent years, developers have also been practising such servicing, providing a better buying experience and simplifying the entire buying journey for customers.

To arrive at the answer to this question, you need to evaluate your specific condition and preference. Here’s how you should decide –

1. Waiting Time

Property builders start selling their properties from the time the project is launched. As a buyer, if you have the patience to wait for the construction to be completed according to the builder’s timeline, it is safe to buy from a reputable real estate developer. If you can’t wait, it’s a good idea to work with a real estate agent.

2. Personalisation Choices

Want a property that is built to your exact preference and choice? If the finishing is something you are particular about and want to be individualised, then you need to buy from a real estate developer. This is because of the flexibility of adding to the style and theme during the construction stages. However, if you are okay with existing interiors and finishes, you can assign an agent to find the best property for you.

3. Condition of Property

If you’re looking to purchase a new property, consider working with a real estate developer. If you are okay with being the second or third owner of the property, a real estate agent can help you find the right one.

4. Optimise on Pricing

If you are uncomfortable paying commissions and other fees to a mediator, avoid a real estate agent. Working with a property developer also helps you access builder incentives, which can result in better pricing. With an agent, you can negotiate better deals, but it could be offset by the different fees you will be required to pay to an agent.

5. More Choices

If you do not want to be limited to a single neighbourhood or real estate developer, then choose a real estate agent. If a single developer suits your requirements, you can stick with the builder.

Want to secure the dream home or make an optimal investment in a commercial property? If so, consider the points mentioned here to make an informed decision. Also, if you are going to buy a home with the help of an agent or a channel partner, it is wise to go with the agents that are registered with the respective state’s RERA.