Home Buying in McKinney>Question Details

Peter, Home Buyer in McKinney, TX

Can you negotiate the price on a "to be built" home? Do I need a buyers agent?

Asked by Peter, McKinney, TX Fri Oct 18, 2013

Help the community by answering this question:



If you listen to the words of the builder representative, a personal agent is unnecessary because they will be able to take care of everything necessary. This may be the case but what the fail to mention is that in doing so, you forfeit your personal representation and no longer have an advocate. On matters of controversy, what level of support will you get from an agent that is being paid and controlled by the builder?

People most certainly benefit from having their own personal representation for new construction. Unfortunately too many people ask your question, after the fact, when it's too late to do anything about it. Your timing is right.....visiting new construction sites is a good thing but make sure you disclose to their representatives that you are committed to and working with an agent. They should respect that...even if your agent isn't with you at the time.

Great question!

1 vote Thank Flag Link Fri Nov 8, 2013
Great points Bill!
Flag Tue Nov 12, 2013
Yes, you should have an agent represent you to help negotiate the price. I work with my clients from the beginning to the end of the transaction when building a new home and I would be happy to help you. I can be reached at the below. Hope to hear from you.
Debbie Viverito
JP and Associates Realtors
1 vote Thank Flag Link Fri Oct 18, 2013
The builder’s sales representative represents only one party, i.e. the builder and NOT you!
0 votes Thank Flag Link Mon Apr 21, 2014
You should ALWAYS have Realtor representation, ESPECIALLY a Realtor with a STRONG NEW CONSTRUCTION Background! This is a Must!

You NEED a Realtor that can not only negotiate a great purchase price, but you also need a Realtor that is very familiar with new construction contracts, arbitration, contingencies, earnest money, financing incentives, interim interest, margins on different floor plans, warranties, permits, inspections, red tags, pricing, design center upgrades, standard features, energy efficiency, lot fits, lot premiums, build lines, easements, city permits and city requirements, blue prints, elevations, suggestions on key items to add to a build that you may forget to consider, the different stages in the construction process, what to look for and what to add in a red line meeting, and so on....all the way through closing. The building process is not easy. Some have even compared it to giving birth! You need experienced eyes! A Realtor that you can count on that speaks both the salesperson's language and the builder's language to PROTECT YOU and partner with you through each stage until completion.

New Construction is a completely different purchase than pre-owned. Choose your representation wisely! To answer your question, can you negotiate the price on a to be built home from the ground up? "Yes", but the negotiations are completely different from negotiating on a spec home that is move-in ready.

Also, it is a common MIS-conception that the builder's sales representative acts as the buyer's Realtor when purchasing new construction. The truth is: the builder's sales representative is employed by, paid by, and works solely for the builder. The builder's interest is protected by the onsite sales representative. The on-site sales people work solely on commission. They need sales! As nice and as helpful as they may seem, do not be fooled! Their loyalty is to their employer, the builder, their commission....not you!

Having a Realtor represent your best interests will not affect the price as it is already built into the base price across the board and it is not a negotiable item. The margins have already been established. Realtors that network with builders gain a HUGE advantage and are able to typically negotiate deeper incentives than any individual could by themselves. Builders rely upon Realtors for the majority of their sales and most have strong relationships with the Realtor community for this very reason. The reality is, it may actually cost you money if you do not have a Realtor with a strong new construction background!

If you want to gain the most value from your purchase, please allow me the opportunity to assist. I have helped many families purchase homes that they never conceived possible. I come from a very strong new construction background from both management and on-site sales. I have sat in the other chair across the negotiating table, I know what questions to ask, what to include, and what purchase price to expect.

Please call me, I would love to help!
Kimberly Karanouh
Keller Williams Realty
0 votes Thank Flag Link Sun Mar 2, 2014
Everything is negotiable. It is always good to have representation when purchasing a home...who does the sales person really represent...they work for the seller or builder. You need someone to provide you with good information and negotiating tools so that you can make a wise educated decision concerning the house you want.
Using a Realtor to buy a home does not cost you anything. We are paid by the builder or seller. Real Estate fees are covered under the marketing plan for the home, not the price of the home that some people seem to think.
Please call me for assistance not only with the purchase of your home but helping you become acclimated to your new community.
Look forward to hearing from you.

Service is the name of the game...
Jeanne Kirby
RE/MAX DFW Associates V
214 733 4428
0 votes Thank Flag Link Wed Nov 20, 2013
When buying any home, it is always best to have a REALTOR represent you!

You have finally found the perfect home for you and your family, now you must decide how much you want to offer for the home. This is when you must develop a negotiating strategy or refine the one currently have. If you offer too low of a price, you risk of losing the home to another buyer who is offering a higher price; if you offer too much, you may pay more than the fair market value for the home.

Did I hear you say earlier that you don’t need a REALTOR®? Finding the right home is the easy part, what takes place from the offering stages to the closing table and beyond can be overwhelming for those who think they can go it alone.

Call me today so we can discuss your real estate needs and how I can assist you!
0 votes Thank Flag Link Tue Nov 12, 2013
Having an agent represent you in any transaction is a great idea. When you are working with a builder you need to be represented for your interests since you will be dealing with a builder sales rep who is there for the builders best interests. If you need help with negotiations I will be happy to help and Move you for FREE*!!

Buy/Sell through me and I'll move you for FREE!!! *Some restrictions apply, ask for details*

0 votes Thank Flag Link Fri Nov 8, 2013
Yes you can and you should definitely use a buyer's agent. If not you are just using the builders representative who gets paid by having you spend as much as possible on the home you are buying. Plus if things go wrong you can have your agent be the middle man. Also, you don't every pay less for not buying with a buyer's agent but often times you will pay more.

You can go in my profile and read my blog article on this topic as it may be helpful to you.

Don Groff | REALTOR® & Mortgage Broker
Austin Real Estate Pros & 360 Lending Group
o 512.669.5599 | m 512.633.4157 | listings@dongroff.com
websites: http://www.AustinListed.com | http://www.360LendingGroup.com
Web Reference: http://www.AustinListed.com
0 votes Thank Flag Link Sat Oct 19, 2013
A buyers agent can help, and it costs you nothing. Price range and type of builder will make a difference.

That being said, most of the builders are in a unique position they have not seen in many years in this tight market. The demand has been outstripping their ability to put excess speculative inventory out there. Talking with builders earlier this year, they were very happy and could not build houses fast enough. They were pleased with not having to give/negotiate on price or free upgrades. Most of their build outs this year have been or are currently sold units from 3-6 months ago as their backlog winds down.

Things in the market appear to be slowing down some from the intense peak this summer, so this may have changed somewhat now. However, the new home inventory is still extremely tight in this area.
0 votes Thank Flag Link Sat Oct 19, 2013
Peter as an agent specializing in new home construction I would highly recommend that you use and agent! All homes are negotiable and especially new construction. I have been an agent in McKinney for over 15 years and know all of the builders and have never assisted one of my clients that we didn't get a reduction not only on cost but closing costs. Give me a call and I will help you!
0 votes Thank Flag Link Sat Oct 19, 2013
I have helped many quite a few buyers negotiate the price on a new build. I have helped some buyers that were not able to negotiate price but the builder ended up giving them more upgrades than before. It costs you NOTHING to use a Realtor to help you through the process. Let me know if you have any other questions.
Jeremy Tillett
0 votes Thank Flag Link Fri Oct 18, 2013
Great answer Linda, and all very true, it is best to have a Realtor to keep documentation and timelines for you, also remember that the builder uses their own contract written by themselves so you need to be very vigilant as to which builder that you are working with and know their reputation. I have worked with most of the builders in the area and have valuable knowledge as to how they back up their work. Linda is right builders factor into price the payment of a Realtor on every home and we can give you great advice moving through the building process, as there can me many issues that can come up through the building process so it is best to be represented, I hope that this helps. I always recommend an independent inspection prior to closing, you would be amazed on the issues that have been discovered in a newly built home.
0 votes Thank Flag Link Fri Oct 18, 2013
Flag Fri Oct 18, 2013
Hi Peter,

It's always best to have representation when building or purchasing a new home. Builders sales agents are not licensed by the state so they do not have to answer to anything they say or do. They have no obligation to you...the buyer. On the other hand, agents must be accountable to their buyers and sellers.. As a Realtor I have an oath and many obligation to you, the buyer.

As a realtor that once worked for a builder I believe I have a deeper level of understanding how builders work. Your home is one of the biggest investments you will ever make and agents are paid by builders not buyers. Just incase you're wondering if you would get a better deal without an agent, the answer is no. We are paid out of their advertising budget which is not connected to the sales price agreed upon buy buyers and builders.

If I can be of further assistance, email me at: lindawhite@ebby.com.

Enjoy your evening,

0 votes Thank Flag Link Fri Oct 18, 2013
Yes, you definitely need an buyers agent if you want someone looking out for your best interest. A good buyers agent will also know how to negotiate to help you get the very best price.The builder is going to look after their best interest don't you want someone looking out for yours. The best thing about it is the service is absolutely free to to you! I just recently helped a client buy a new home in Mckinney and would be happy to help you!

Jason Todd-214-458-4198

Web Reference: http://ToddHomesForSale.com
0 votes Thank Flag Link Fri Oct 18, 2013
Yes, you can. I highly recommend having a buyers agent to represent you and be your advocate! She/he can negotiate the price, guide you every step of the way, and advice you on things to considered.

I'd be happy to represent you if you haven't hired a buyers agent yet. You can call me at 469-371-2899.

Susie Kay, Realtor®
United Real Estate
III Lincoln Centre, 5430 LBJ Freeway #280
Dallas, TX 78240


Servicing your real estate need is my priority!
0 votes Thank Flag Link Fri Oct 18, 2013
Yes it is always in the best interest of the buyer to have a knowledgeable agent dedicated to your best interests and goals. The building process can be very daunting and usually requires non-refundable deposits and extensive paperwork. Margins will vary from builder to builder so it is important to have not only a strong negotiator but one that is knowledgeable in the new construction market. Joe Rider on the HagenPowell Team offers an extensive knowledge of the building industry gained while working with developers and builders. He knows the ins and out, and tricks of the trade! We work throughout the Collin County market. Please give Joe Rider a call if our team may be of any assistance! His direct number is 214-931-9998.
0 votes Thank Flag Link Fri Oct 18, 2013
Having representation that is no cost to you, to help insure you are getting a good solid home, for a good price is very beneficial to you.
0 votes Thank Flag Link Fri Oct 18, 2013
Absolutely. They builder typically has some margins built in. It is also good to know what is and is not included because you might assume that some features are included that are not. You can approach a builder without an agent but I would never advise it. The builders are more than happy to work with an agent and you will then have an advocate helping you through the process. I have helped many buyers buy new homes and they were happy to have my help.
It doesn't cost you anything to have an agent. They builder will pay the commission.
You are welcome to contact me for more information.
0 votes Thank Flag Link Fri Oct 18, 2013
Hi Peter: It's definitely negotiable. You might be interested in our flat-fee program...the builder pays our fee.

I am the owner/broker of one of Dallas' oldest and most successful Exclusive Buyer Agencies, HelpUBuy America. EBAs only work with homebuyers and there is never a conflict of interest that will jeopardize your negotiating position.

We charge a flat-fee for our services, so our fee is the same regardless of whether you buy a $150,000 home or a $500,000 home. This eliminates the conflict of interest that exists when you an agent is paid a commission based on the sales price of the home.

We've been protecting the rights of first-time homebuyers since 1995, and we'd love to assist you. I've also had a book published on Amazon called Buying a Home: Don't Let Them Make a Monkey Out of You. It'll be the best $6 you've ever spent.

Let me know if we can help.
0 votes Thank Flag Link Fri Oct 18, 2013
Hi Peter
Yes the price is absolutely negotiable. I would recommend utilizing a buyer's agent familiar with new construction. You want someone on your side to represent your interests.
0 votes Thank Flag Link Fri Oct 18, 2013
Peter, when you have a buyer's agent represent your best interest with the builder, it should cost nothing to you...the builder should pay the percentage of closing costs that covers the agent's commission. I currently am representing clients in a new build at the moment, and would love to help you out as well! Feel free to contact me today!
Flag Thu Jan 16, 2014
Thanks Tony! On average how much will it cost me to hire a buyers agent? Is it a percentage?
Flag Fri Oct 18, 2013
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