There seems to be some confusion on who the helpful on-site agent at a new subdivision represents. Whereas they appear that they are telling you about the neighborhood, the upgrades and the builder's position on things, they strictly represent the builder both legally and morally. So, please don't be fooled by what they say and the warm and fuzzy feelings that you get while talking to them.

The reasons that you need representation when you are purchasing new construction are vast. The punch list alone is one of the most harrowing events in the transaction and a separate, professional, unbiased eye can help you get the best product possible for your money.

Negotiating the new construction agreement is also a time where you can receive value. Whether it is in a reduction of sales price, upgrades at no charge or amenities at a reduction, this is the time that you need someone to act as the buffer. Plus, the builder is required to pay a certain percentage in commission per their agreement with the developer, so someone is going to get the commission whether or not you have quality representation.