Home Buying in 45449>Question Details

Rockheadsgirl, Home Buyer in 45449

New Build-Do I need a realtor?

Asked by Rockheadsgirl, 45449 Mon May 11, 2009

My Fiance and I want to build a Maple Street/Fisher Home in a developing area in Trenton, Ohio. Do I need a realtor? Who pays the realtor? What will my realtor do for me that I cannot do when purchasing/ordering this home? I'm asking b/c we haven't considered this fee!

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8
Rockheadsgirl
The builders rep represents the builder not you. Their job is to get a house sold not to try to help protect you in the transaction. You should have a Realtor® represent you in the transaction. Also beware of the "False" payment on new constuction. You are only paying taxes the first year on the lot not on the home. Expect your payment to go up after taxes are assesed on the property.
I don't know if you are familar with Quail Run a subdivision by Cristo in Trenton. This subdivision is located about 5 minutes from my home at Wayne-Madison and Trenton Rd., about 25% of the homes forclosed, in my opinion by looking at the time line because of the tax bump on payments.
Web Reference: http://www.Find1Home.com
4 votes Thank Flag Link Tue May 12, 2009
Mark is absolutely right! Builders do budget for Realtor fees, so you won't be saving any money not using your own Realtor. Many Realtors are very familiar with the new-build process, and can help you through most of the questions you have, act as your advocate with the builder to be sure you are getting what you are paying for. And, the market being what it is wherever you are, builders are finding themselves more willing to make concessions or add-ons, and a good Realtor may be able to help you negotiate in that regard. As you know (or are finding out), building a home is a very BIG deal; why would you not want someone totally on YOUR side, helping you make this a very happy, positive experience? Good luck and happy housebuilding!

Susan
2 votes Thank Flag Link Tue May 12, 2009
Hi,

Chris makes some good points and I agree you should have an agent working for you. With a production builder like the one you are considering there would be no cost to you... Actually you will pay if you use an agent or not. You see the builder has two budgets, a production and a marketing budget. They know what % of buyers will have an agent represent them and they factor that cost across ALL BUYERS... so you will not get a discount if you don't use an agent.

I have built several homes in addition to remodeling experience and both Residential Construction Certified (RCC) and a Certified New Home Sales Specialist. If you would like to talk more about questions on home building and/or would like to discuss having me and my team represent you in your home building please call. 937-353-4600

Best of luck to you either way!
1 vote Thank Flag Link Mon May 11, 2009
Yes, you should have a Realtor. The site salespeople represent the builder. Sure, they can facilitate the purchase just fine. But they are not there to look out for your best interest. It costs you nothing (usually) to have a Realtor represent you with a builder. A good Realtor will know the process and be a huge help to you. And yes, even though the builder has to pay the Realtor's commission, you are still likely to get a better price on the home with the negotiating assistance of an agent. One thing to be aware of though.....if you visit the sales site and register with the builder, the you have actually waived your right to representation. Make sure that your agent is the first point of contact for any home that interests you, and that they come with you on your first visit to the site. New construction offers some of the best buys going right now. Keep in mind that the builders are willing to negotiate down from their asking prices, unlike a few years ago. Also, ask about their incentives. Many are offering creative incentive packages just to bring buyers in the door. Good luck to you.
1 vote Thank Flag Link Mon May 11, 2009
Wow, this question is old... Rockheadsgirl... what did you end up doing?
0 votes Thank Flag Link Tue Nov 26, 2013
In my experience, there's no value added by taking an agent to a new construction. The new construction process is set up for "off the street buyers" The prices are established and dictated by the market. Especially here in Clarksburg where the houses practically sell themselves and there are waiting lists for lots. With that said, what specifically can an agent do for me? We took an agent to the new construction, she got her name on the list and collected her comission- that's literally IT! And I really don't blame her because there was nothing for her to do. So for me, someone who has bought a new construction, I would take my chances without one. You may be able to get more from the builder on your own because you are saving them thousands in comissions. If not, you can always find a willing realtor later. My advice would be: see what you can get from the builders without an agent BEFORE you sign anything. If they won't play, go get an agent you like, make a cash incentive deal with them before you BEFORE you sign anything (1 percent or so) and move forward with the willing party. It sounds shady, but as a home buyer you have to realize that the ball is in YOUR court and NOBODY gets paid unless you buy so you've got to make the system work for you. In the end, you're the one that has to pay the mortgage- not them! So take care of yourself... Once again, I'm not a real estate agent, just an EXPERIENCED student of the game
0 votes Thank Flag Link Tue Nov 26, 2013
Many of our clients have the same question. The Kortright Group is located in Goodyear, AZ, but this link can take you to an article that can apply to any area.
0 votes Thank Flag Link Thu Jan 12, 2012
I am working wiht a seller right now who was not represented by their own Realtor when building a new home. This has turned into a disaster for them both emotionally and financially. This could have all been avoided if they had had their own representation. My own parents recently had a similar experience. The amount they have spent on attorney fees is unbelieveable. (They live out of my area, so they could not initially ask for my help. Yes, I have scolded them!) A realtor familiar with new builds is extremely important. Even if a builder says they will reduce the cost if you don't use one, believe me, in the end you will end up paying more.

Dee Nofziger
Realtor
Web Reference: http://www.ask-dede.com
0 votes Thank Flag Link Tue May 12, 2009
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