I'm a huge Fanilow!!! I love you Barry!!! Whoo hoo!!!



Ha, ha!!! It had to be done.

Thanks everyone for the answers. We decided to rent for another year, given the current economic conditions. Will look to revisit purchasing again in the near future...

Barry,

I work for Toll Brothers in Walpole. We have special incentives in place right now that are making our houses sell at a considerable pace. As most of the agents that replied to your question have stated, we do value our agent relations and therefore, we do not negotiate additional incentives if you are not represented by an agent. Please be aware that we do require that your representing agent accompany you and register you on your first visit, so please come by and see us and by all means, bring your agent. We have opened new Phase IV lots that back up to open space. Hope to see you.

The developer is probably on the hook for a fixed commission regardless of you having an agent or not. I would recommend having an agent. It does not cost you anything.

Mike Mahoney http://www.mmahoney.com
617-648-3983

The fact that you don't have a buyers agent, will not justify a builder to discount the price of a house. The commission for both the Buyers agent and the Selling agent is built into an offer. It doesn't cost you anything to have an agent (on the buy side) work in your behalf. The agent selling the house isworking for the owner/builder. They are going to get the best possible price for their client. A BUYERS AGENT is working on your behalf and will negotiate the best possible price for your situation. If you have great credit, nothing to sell and 20% to put down, your chances of negotiating the price are probably stronger than someone who has a house to sell, and putting down less than 20%. If I can help in any way, please feel free to contact me. Karen.Smith@nemoves.com

You probably will not be able to negotiate the percentage off the sales price. The team hyas a deal with the builder and they will just double end the deal, the buyer agent commission is alrady built into the price. You best bet is the have a Buyer Agent represent you. Remember the Sales Team/Agent works for the builder not for you. This is a huge purchase and a big endeavor. New Construction can be tricky and even some of the best agents are not skilled at new construction. Your Buyer Agent will be able to negotiate a deal for you depending on your circumstances and how strong of a buyer you are. Buyer agents are skilled negotiators and will get you the best deal, it isn't always about money either there may be other things that you can negotiate.

I think David Hintz gave the best answer here. The first thing you need to think about is having your best interests as a buyer met and that isn't going to happen through the sales team at a development. It is similar to working with the agent who represents the seller in a transaction. That agents legal duty is protect the seller, and in the case the developer/builder, and to get the highest price for the property. The sales teams commissions are likely pre-determined - 6% - and therefore non negotiable. Your best bet would be to hire a buyers agent and have them push for a discount in listing price rather than get yourself in a position where you begin negotiations with a sales team member in hopes of having them wave 1/2 their commission to get a lower price and then finding out too late that is not going to happen and you end up paying more.

Good luck!

I went to Nordstroms and found my own dress and shoes, without the help of a sales assistant. I asked them to knock off a few dollars, since no bonus, spiff, or commission would be paid....and they said, "no."

Then I went online and ordered a scanner from Visioneer. I didn't buy it through a VAR, or a dealer. I asked if I got a discount, and they said, "no."

I went to the grocery store and bagged my own groceries, and asked if I got a discount since they didn't pay staff to help me and they said, "no." The grocery store gave me a blank stare. Visioneer laughed and thought it was a joke.

When you go into a new home development, either their sales staff or your own agent is going to invest time with you. When their staff assists, they do so with the intent of advocating for the builder. When your buyer agent assists, they do so in support of your best interests.

I went to Home Depot and utilized the self check out. I scanned my own items, paid my bill and then asked if I got a discount because they didn't pay a staff salary, and they said, "no."

Nordstrom said their staff was there and they pay them whether I called upon them or not. Home Depot said they invested in equipment and computers instead of staff.

Barry,
I would be willing to bet that professional representation would bring you better savings than 3 percent. When you walk throught the door their objective is to "sell you" not to find you the best deal. Most agents I know will lay awake at night trying to find you the best opportunity.

You need someone that has the ability to share recent comps with you so you can make an informed decision.

Good luck,
The "Eckler Team"

Barry:

If you were singing in Vegas and went into a Casino would you try to negotiate with the House? You can negotiate anything with anybody, but will always do better with professional representation.

Regards,

Rob

There are 3 big mistakes that buyer's looking to purchase a new home in a new development need to avoid. 1) Never deal with the sales office without your own agent to represent you. The sales office agents represent the builder/developer and their interests, not yours. Their job is to sell the properties for the builder/developer. 2) Never finance the transaction thru the builders inhouse lender. They also represent the builder/developer and receive incentives to close deals. 3) Never agree upon a price without first having your own appraisal performed for the actual market value of the property. The selling price is determined by the builder/developer and does not represent market value. They also have appraisers that will provide values to justify their selling price as do the inhouse lenders. You may want to keep in mind the agent representing you also has a vested interest in the transaction to close.

Barry,
Actually no. I am sure their listing agreement states that the sales team is paid 6% is there is no buyers agent. You would be better off having a buyers agent negotiate a lower price for you. Besides they pay the buyers agent out of the sellers proceeds. The only time you could negotiate such a deal is with a FSBO or a non-exclusive listing. If the agents actually are employees of the developer/builder you might also have a chance but, you are negotiating with the person that is taking the pay cut. So good luck.

Barry (?),

Okay, you could go in without representation and it would be logical to conclude that they aren't having to pay a buyer's agent, so if the typical buyer agent fee is 3%, then you might be able to negotiate the 3% off the sale price.

But you have to ask yourself, how do you know, without understanding comparable values in the area, like an agent would, that the sale price is what the property is worth? Fact is, you don't. Many people think they are getting a deal by trying to negotiate the 3% off the sale price, justifying that since they don't have an agent, they should be entitled to the discount.

When they get the discount, they feel good. Too bad though, especially if the house was 15% over priced to begin with. What you end up with is 3% off an over priced house, and you feel good about it??

Use an agent and get good representation to help you figure out what the house is really worth, and what you should be negotiating for. And not just for the purchase price, but also in upgrades, terms and conditions, and other items that you're simply not experienced enough with.

The likelihood is that you'll end up considerably better off with an agent than without one.

Good luck,

Jeffrey