Hi Corey:
Not only can you use a buyer's agent to buy new construction, it is your right to have representation in Maryland and even builder agents are supposed to inform you of this right. When you buy directly from the builder without an agent, you are giving up your right to representation and unless you are getting a significant break for giving up this right, it rarely makes sense to buy without an agent. Most builders have already priced in the buyer agent commission into the price of the home. Many builders will balk at paying if you do not visit with your agent on your first visit -- an issue that can be solved by negotiations and informing the builder of the law. Besides the price there are an incredible array of issues that come up during the process of signing up to settlement, occupancy and post-settlement. A knowledgeable and experienced agent can give you quite a bit of advantage.

Wed Mar 19 2008, 05:33

Hi Corey,

Yes, you may negotiate with the builders on price as well as use a buyer's agent to represent your interests. It may be useful for you and your agent to ask the builders whether or not they have a program in place for REALTORS.

For example, Holiday Builders has a registration page on their website for Real Estate Professionals and are very happy to work with anyone representing a buyer who wishes to build a new home in the states where they develop properties. Check out the Web Reference link provided below and explore their website.

My husband and I have family who brought from this company because they were willing to work with R E Agents from any state (to help relocate their clients to FL). I hope to use them myself one day and will be very happy to employ a buyer's representative to represent us in the Spring of 2009 (and keep track of the building progress) while we remain in NY until our new home is complete. We've selected the Morro Bay 4 as our first choice. Not too big, not too small, a very lovely interior and one we've visited every single vacation to keep the features up close and personal in our minds. We originally wanted a Mercedes home but were disappointed to learn (at the time) that the company would not build on your own lot. We're hoping to go down to visit them again this Fall to see what the upgrades look like.

I'm also hoping they start building outside of Columbia SC like KB Homes did (e.g. joint venture with the Martha Stewart signature homes and planned unit developments). We have land this state as well and would eventually like to expand our land holdings to include PA, GA and TN.

I advise all of my clients to buy land if they can't afford to buy a house. Eventually, they will be able to and it is so much more fun to build a dream home from the ground up. Your dream home does not have to be expensive, it just has to be what you want in an area that you like. I've always wanted a cabin and look forward to assembling a $20-40K kit one day.

Scope out other builder sites and consider working with companies that already embrace representation. They've streamlined the process for you and your agent, which will probably save you time (and possibly eliminate potential headaches) in the end.

Enjoy your day and best wishes.

Regards, C.
( http://www.TannStarr.com )

Mon Mar 17 2008, 16:00

Yes, you can negotiate; and yes, you can use a buyer's agent. And finally, a good new construction buyer's agent can be of great help. Take a look at the blog below.

Mon Mar 17 2008, 15:09

In this area of Florida, the Treasure Coast, builders welcome Realtors and they pay a commission. In this market, they are happy to pay a commission. Often a Realtor will know how low the builder will go and what incentives they have offered others. Katie Murphy, Realtor--Keller Williams of the Treasure Coast. 561-452-2160, ktmurphyrealtor@aol.com

Mon Mar 17 2008, 15:05

Corey,


You can use a buyers agent for anything, if you don't mind paying the commission ...

Most builders will tell you "up front" there's a 3 to 5% increase in price if you have an agent, or there is a 3 to 5% discount if you come on solo ... remember, quality real estate attorneys are only $700/$900 away ...


;^)

Mon Mar 17 2008, 14:54

Yes and Yes! You can negotiate prices. Builders are more inclined to give you more incentives then drop prices to keep their books looking good. Yes, most builders will pay for your buyer's agent. A good buyer's agent can help you with options, home inspection recommendations, loan terms, contract negotiations, lot selections, etc.

Mon Mar 17 2008, 14:49

Of course you can, especially at this point in time. Again, don't expect to get 10 cents on the dollar. It doesn't cost anything to try but I would suggest that you use a realtor because the realtor can often determine what the lowest acceptable offer would be or perhaps negotiate a lease to buy situation with the builder. GO for IT.

Mon Mar 17 2008, 14:25

Thank you Karen for clarifying about Ryan. What I should have said is that they do not pay a commission, therefore the buyer will need to work that out with the agent.

Mon Mar 17 2008, 14:21

Not only can you use an agent, it is advisable. The agent on site represents the builder, and must disclose that to the buyers. Having a buyer's agent insures that you have representation, which means your best interests are his, or her concern. They can negotiate for you, and in this market that should be expected. The commission is built in to the price of the home, and if there is no buyer's agent, the builder or their agent keeps it. Some people mistakenly think not having a buyer's agent lowers the price of the home for them.
(Ryan Homes will and must work with a buyer's agent, they just don't pay the usual amount. It's a flat fee, I think it is only around $1500.)

Mon Mar 17 2008, 14:08

Yes, Yes and Yes. As I mentioned in the other question, nothing is set in stone (until you close), though builders will have you think that it is. Even after you sign a contract there are still ways to negotiate.

Mon Mar 17 2008, 14:04

You certainly can try. The only builder I know of that will not work with agents is Ryan. Most builders will work with agents and pay the commission. As a general rule you need to go with your agent but if you don't it is best not to sign in and when the builders rep talks to you, let them know you have an agent you are working with.

Mon Mar 17 2008, 13:45

Yes you can use a buyers agent when buying new construction. Most builders pay a commission

Mon Mar 17 2008, 13:44