the seller pays any commissions......
You and many other "buyer agents" should not go around misrepresenting facts. In today's real estate envirionment it is nice that the listing agent is offering compensation to a buyers agent and or facilitator. But there is no law that says he/she has to. Nor is the fee that may be offered necessarily acceptable to you the buyers agent who may want to seek fair compensation for your services the sameway any other professional would expect.
The seller wants to net 300000 and is willing to pay x% to the listing broker and offering y% to the selling broker. If you did not take your fee would your buyer be paying less for the property 300k less y%???? Of course or on the other hand if there were 2 equal competing offers the one without the selling agent should win as the seller will net the y%
You are entiled to your y% as you are a professional and your client should be happy to pay it, but be professional and tell the buyers the truth as it adverserly effects the rest of us professionals.
A lot of people make this assumption, and it is not correct. In addition, having someone on your side to protect your interests is the reason to have an agent..
I am a buyers agent and would be happy to help you submit an offer, negotiate, get through inspection, and close the deal. I might even be able to negotiate some upgrades for you!
I found myself a new construction house. I did my research on the location and the builder (Centex). I set up the appointment to go over there and look at the property. I checked the prices, the cost of upgrades, looked at the comparables (other houses that were built and sold in last few months). I know about home inspection, builderâ€™s warranty, and after a little more research, I am pretty sure I can come up with a checklist for the closing. I know about getting everything in writing. Now all these, I guess, a buyers agent would do and may be more. But then again, at the same time, they all seem doable for any smart homebuyer as well.
Buyerâ€™s agents are the trained people who know how the business works. So having someone like that is definitely a benefit.
After reading all the responses here, it seemed that the agents are promoting themselves and their profession, which is totally understandable. But at the end of the day, you can try and treat your flu with a flu medicine. Will it work? You can't tell, until you actually try. Do you actually have something more serious then a flu, you wouldn't know that either. ... I'd really like to know how our_first_home's situation turned out.
The fact is, builders expect to pay some commission to a percent of the buyers, but they also know that the buyers with agents can very easily take their business elsewher if they are not giving them a good deal.
Yes, they may appear to through more upgrades in if you don't use an agent, but that can also be because you are overpaying and don't realize it.
I have never had a problem negotiating with a builder to get the same offer as a buyer without an agent and probably do better than most buyers.
I would agree with you that if the builder is getting the benefit of no buyers agent. He should be more than open to some upgrades or a reduced price. Be realistic, not greedy. If he is unwilling, there are plenty of new homes available.
Several things need to be cleared up here.
1) All buyers should use an agent...there is a myriad of paperwork and advise that is beneficial to a buyer that they will not be given by the selling agent, because they work for the seller...not you!
2) Sale prices depend on many things...no matter what the asking price is, the selling price can be higher or lower due to interest on the property....be represented during this process
3) The selling agent's commission is not negotiable! The builder and the selling agent have a contract. If there is not a buyer's agent, then the selling agent's office receives the full commission.
Think about your transaction this way: you can ask for the moon....you will be dealing with the seller's agent and they will have no reason to give up their commission when they are performing the work of two agents: the buyer's agent and the seller's agent. You can see how the agent would not relinquish their pay....if your job's work were doubled, would you expect more compensation...my guess, you would say, yes.
Remember it will be your house, not the agent's....why should the agent pay for upgrades to your house?
Good luck, with whatever you decide to do...if you'd like to work with a buyer's agent, feel free to contact me. I am quite familiar with the towns west of Boston and around Rte. 128.
However, you definitely should have one.
Your question also reflects a common misunderstanding. First, you wouldn't pay the agent anything. The builder (the seller) would. Second, while you could try negotiating with the builder ("I don't have an agent, so you'll save 2.5%. I'd like that 2.5% applied to upgrades or to a discount on the price."), it won't work. It just won't.
On the other hand, your agent may be able to negotiate a slightly better deal for you than you could yourself. Most likely, it'd be in the form of upgrades. Even if your agent isn't able to, you won't be paying a commission and you won't be paying any more for the home than if you bought it without an agent.
So: Use an agent.
Hope that helps.
The price is really set by the market, not whether you have an agent or not. Buyers with agents probably have a better sense of the market than those without, so the builder can not really charge these buyers more. If they did, they would lose many sales.
Even more compelling...buyer agent representation is FREE to you. Buyers don't always realize this...but when a seller or builder meets with an agent to list their house the commission that is agreed upon is typically split in half...with 50% going to the listing agent for their services, and the other 50% going to the buyer agent for their services. Yes, the seller pays your buyer's agent to negotiate against them! It's kind of crazy, but that's the way it works. If you don't utilize a buyer's agent, the listing agent keeps 100% of the commission. The listing agent would LOVE you if you didn't use a buyer's agent...but it's not in your best interest.
What development are you looking at? If you have other questions feel free to message me through this forum or follow the link below to my website which includes my contact info. I'm based out of Framingham but serve the entire MetroWest area.
Best of luck!