Home Buying in Cottage Grove>Question Details

Jp, Home Owner in Minnesota

My wife and I have found a spec home we are interested in purchasing from the builder. Is it necessary to?

Asked by Jp, Minnesota Sun Dec 9, 2007

have a real estate agent since we already found the home? In other words, what help with an agent give us in the purchasing dept? Thanks!

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A real estate agent working on your behalf would be able to compile comparables for sale and that have sold in that development and others nearby and would be able to give counsel as to price and terms to offer. Their interests would be aligned with yours, as opposed to the builder's representative, whose interests are aligned with the builder. Further, agents have seen much more inventory in the market and can also provide commentary as to the future resaleability of the home, its quality, builder reputation, etc.

In this market some builders are very motivated to reduce their inventory. I recently negotiated an additional $7000 off of a spec townhome that had been recently reduced $5000. A few weeks ago I found a $487,000 home that was marked down to $387,000... a $100,000 reduction! That house ended up selling in multiple offers.

Since you have already selected a home, it is possible that an agent working on your behalf may not be able to receive a cooperating commission from the builder if you've already have significant intereactions with the builder or its representatives. If that's the case, you would need to negotiate with an agent to provide them direct compensation for representation, but I believe that in almost all circumstances you'll find the agent's ability to negotiate on your behalf to be well worth it.
Web Reference: http://www.AaronSOLD.com
1 vote Thank Flag Link Sun Dec 9, 2007
I would surely recommend it! If you don't, you have no representaion or anyone who is looking after your interest. The builder may have one looking after his and even if he does not, I would not enter into any disscussion with a builder without representation.

Just a side note, I say that having represented a builder for over 4 years....

If you'd like more info, I'd be happy to help and represent you, if you'd like! I know the area well, as I lived in Woodbury for 22 years! All my contact info is on my website. http://www.toddnorsted.com

Thanks, Todd
Web Reference: http://www.toddnorsted.com
1 vote Thank Flag Link Sun Dec 9, 2007
Jp.......I neglected to tell you in my answer that in a typical scenario of a Buyer working with a Buyer, there is no cost to the Buyer. Compensation for the realtor is paid by the Seller, and per rules and regs set out, the cost of a property to the Buyer is to be the same, with or without a Realtor.

Again, I would surely recommend having a Realtor working on your behalf.

Thanks, Todd
Web Reference: http://www.toddnorsted.com
0 votes Thank Flag Link Sun Dec 9, 2007
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