Sally-what advice would you give to Brenda?

I would also like to add that a Realtor not experienced in NEW HOME SALES is not your best candidate if you choose to use a Realtor. It is an area of expertise that requires training and understanding of the process. If you obtain a Realtor for the sake of a person to stand by your side, you could be very disappointed.

I have had many homeowners share with me their disappointment with the fact that their Realtor took them to the new home site, then the next time they saw them was at closing. This is NOT representation. If you choose to use a Realtor, interview them, ask questions, and check client referrences.

Best wishes!

Brenda,
You negotiate just like you would for any major purchase. Know what is a fair price, and offer what you are willing to pay! The posts here were trying to explain that the Realtor fees are factored in to the entire construction costs. In our area, they even come out of an entirely different budget.

However, YOU have choices and have the ability to negotiate what price you are willing to pay. Do I believe you are better off with a professional that knows how to negotiate these transactions? Absolutely. However, it is not impossible to do it on your own. Especially if you have are well informed in land value and home contruction costs.

The only reason builders are able to pull the prices they are getting is because people are willing to pay what they ask. It is no different with resale homes. We can put a home on the market for any price our seller would like to get for their home. But it may not get any showings, as they can only demand what a buyer is willing to pay.

I hope this helps!
Angela

For Sally, I am sorry but we can't answer her question with our know the subdivision, floor plan and lot. We know she wants to save the money that we would be paid and get all the extras that are given to everyone else., that is all. Well the unlicensed sales person that is not held up to any ethics or laws will also be paid as listed below, this is built in, there is a marketing cost built in. The $20,000 incentives is built in. Some Realtors take extra Classes for New Home Sales. This is not just to act like a used car salesman. It is to know the building process, the inspection process and the local regulations. Not all builders are following them. Not all builders have all their bills paid. Laws are different from state to state so things may be very different here than in Va. . I will tell you that the Realtors here are the most highly trained in the U.S., I put an thumbs up on Andrea as he came very near to an answer - the nearest anyone could without having the particulars.
Margaret

Hi Brenda,
I am familiar with this builder. I have visited Cross Creek Ranch. Please keep in mind that whether you are working with a Realtor or not, a builder of this magnitude such as; Trendmaker or Lennar Homes and many others always include a Realtor commission into the development of the property.
The incentives would still be available to you even if you were represented by an Agent. The builder is not giving you a " special deal" because you don't have an agent.. He is going to sell you a property at the price he wants.
If you were represented by an Agent, your agent could not only negotiate the price for you but he could also find out how many ( if any) similar properties have been sold for.
You won't get any negotiating help from your Rep in the Sales Office because he works and he represents the builder. They would write and use their own contracts, which are at least 40-50 pages long. They have probably asked you to put down a deposit between $1,000 to $3,000 to hold the lot, which you'd get it back if you were to change your mind. If the house is yet to be built, this is the time to negotiate and come to terms, Brenda.
Make sure you ask questions, and more importantly ask your Rep to go over that long contract with you.
As far as negotiating the price, I would probably ask the on-site Manager just in case. It doesn't hurt to ask.
Good Luck to you.

I think it's kind of funny that none of the realtors...who apparently think you can't live without their guidance and advice...were able to answer your question.

In my experience, anytime someone wants to do something themselves to save money, they are in a bad place ( I won't name that place.)
What is your profession, Mechanic, Accountant, Doctor, Attorney, Pizza maker, Service Station Owner?
What would you think of someone that wanted to preform your job just to not pay for something that was not coming out of his picket anyway. Salesperson and the preferred buyers agent fees are built in with grass, fences, toilets and so on.

First of all the prices vary because the price of the DIRT - that is location, locaion and location - varies.

You have better bargining power on homes not built or started if you know what you are doing, but trying to outsmart the professional will not help.

Marg

Brenda,

The sales counselor's job is to get the BEST price they can for the home. Often times, there is a bonus in it for them if they can sell the home and they have left over "discretionary" money that they could've given to the client. The SC represent the seller. You need someone who'll represent YOUR best interests. It doesn't cost you a thing. They can't give you a better deal because you do/don't have a Realtor. Also, Realtors bring them volume business - you are a one shot deal. Who's going to get the better deal?

There is probably more on the table to be had.

Best wishes,
Terri Hayley

The home builder may tell you that you will get a better deal (as one here did) not working with a Realtor but I have worked with builders and been in Real Estate for near 40 years.
They want you to think that,but they will pocket that fee. You are not getting that discount. You would get a discount anyway when it got to the point of saying - We want it or We Walk. The selling fee is built in, those people do not work there for nothing, they are paid less than a Realtor but the builder is setting off more of his cost pencil wise when it is an inhouse sale. The person at the Builders office does not have to have a Real Estate Lic. or be controlled by any commission - he answers only to the builder so he does not have to live up to the standards as a Realtor.
You do need a Realtor that is experienced in new home sales. That does not mean done some because they already had a buyers agency agreement, that means experienced in dealing with the builders. There is a certain amount built in the price for several different uses and an extimate of time on the market. These concessions can be moved from one use to another - someone just needs to know what they are.
And again the concessions will vary from builder to builder depending on the volumn and experience of the builder.
Now I will agree that prices will vary from one subdivision to another. The cost of the land, the streets, the utilities, the amenities and so forth will vary. The Builder either paid for these in his developement or purchase of the property. But some of this variance can be credited to the neighboring subdivsions. Just trying to get what the market will bear.

Now that I have totally confused you , good luck

Margaret

Fact is... I am a homebuilder and a broker. On large production homes, commission is built into the development of the neighborhood and not specific for each home. As guidelines, builders are not to tell the customers that they can reduce the commission on the home if they are not working with a Realtor. Moreover, you can negotiate the price of the home. The sales counselor does not have that authority, but the sales manager or vp of sales will. In a very competitive market, I have had many clients get more off the top than expected. If you don't ask, you won't receive.

Always always always work with a realtor. You'll have a much easier time with negotiations this way then working directly with the salesperson. Checkout my website as to why you should use a realtor when negotiating with a builder under the section on new homes. Also prices will vary from community to community even for the same house as land prices will vary. Your price on existing construction will likely be better than on "to build" homes. One reason is commodity prices have and are increasing significantly. The other is holding costs. Sometimes the builders don't even own the lots until they sell you the house or build on it, so often you can make the better deal on an existing home. When you are ready for assistance let me know and we'll connect you with just the right realtor in your neighborhood.

Brenda, the fact that you are asking for help says that you really need the assistance. Realtors fees are built into the price of the house or come from a separate marketing fund from the builder. Thinking that you will get that discount is a myth. How do you know that the house is not already overpriced and if the builder comes down whatever amount 10K or more that it's still worth that amount? It could be 50K overpriced to begin with. How good of a job does this builder do? what is its reputation? are they still going to be in business when your house is finished and when warranty issues come up later? I admit that we don't have a crystal ball but a good Realtor will tell you the likelihood based on their expertise.

Get yourself a buyer's agent that can give you comps, advice on the lot location. The builder has someone working for him, why shouldn't you? especially that it doesn't cost you anything.

Brenda,
It really seems that you need some help there. Usually Builders' don't negotiate a whole lot better prices with clients without a realtor, and depending on the price of a home the commission for a buyers agent is somewhere around 2 to 3 %. Does that really make the difference? Your Realtor could also give you more information on different mortgages available for you and all the buying and closing procedures. All your questions could be answered if you would choose to work with somebody who is representing YOUR best interest. A Realtor can provide the most detailed information for you and you don't even have to pay for their services!!! Since you are already in negotiation with the builder you would have to check with them if they would still allow you to choose a realtor sometimes it gets tricky there. Have you already signed any contracts with the builder? Please check the TAR webpage http://www.texasrealtors.com/ and the NAR webpage http://www.realtor.org/ for further information on how Real Estate is supposed to work.
If you have any questions please don’t hesitate to contact me or any other Realtor to help you.
Good luck
Martina

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