New home construction and realtor representation

Charlie
Other/Just Looking
Pittsburgh, PA

If a new home buyer were to visit a new construction model home without a realtor, is there period of time for representation established for the on-site seller’s agent (who is representing the builder)? For example, if I waited over a year after the first visit, would the on-site seller agent still hold representation or could I bring my own realtor.

I know the answers may vary by state, but I was curious to see the responses. Thanks, Charlie

Answers (15)
Gita Bantwal, A...
Agent
Bucks County, PA

Charlie, If you are working with an agent have the agent call the builder's sales office. Most builders are not as strict as before. In our area I have taken buyers within 30 days but I call and ask them first.

Sat Feb 28 2009, 13:38
Crystal Brady
Agent
Tampa, FL

I would agree with Jackie, it can only benefit you to have representation through a Realtor. Prior to being a Realtor I worked for a large homebuilder. Don't assume that because you are using a Realtor that you are being charged 3% more. It just means in most cases that the builder is profiting 3% more instead of giving it to an agent. With the current state of the market builders will still try and say they aren't negotiating prices but they are, and that is why you want an agent. Your agent will be a powerful negotiator for you and will watch out for your best interests. To answer your original question, usually to be represented by your own agent you need to bring them on your first visit and register with them. But, if it has been over a year or even if you are visiting a different community of the same builder you should be able to bring your own agent. You might even be able to bring your own agent after your initial visit if you insist that you want them involved because the builders are so desperate to sell. Good luck!

Fri Feb 27 2009, 07:34
Jackie Hamilton
Agent
15241

Yikes! After reading those posts that said you don't need a realtor I couldn't reisist. So, first off having been on both sides of the coin, meaning prior to being a realtor, I had bought and sold 4 properties and there is nothing like having a realtor who's representing you and watching out for your interests. Yes all realtors are not created equal, but neither are doctors, lawyers, and teachers. If you approach selecting your realtor as you would buying a car or selecting a school for your child you will find one that matchs your criteria. And by all means, interview your realtor. As professional realtors we are bound by a code of ethics that are tested each and every day, each transaction. Whether we are representing a buyer or a seller we have responsibilites to the client in regards to disclosure, loyalty, confidentiality and always making a good faith attempt to find a buyer for the property or to find a property for the buyer. Negoitating the contract is also another duty of the agent and getting the best possible price with the best terms whether you're buying or selling. A saavy realtor could probably get more than the 3% discount for you. But in the end it is your choice as to whether or not you hire a realtor to represent you.

Fri Feb 27 2009, 07:21
Underwater
Home Seller
Dallam County, TX

Take it from me...there is NO need for a Realtor. Just take the 3% discount and let the Seller handle it all. If you really want to buy you will be happier if you did it without one.

Thu Feb 26 2009, 19:03
Bill Eckler-Flo...
Agent
Venice, FL

How would you feel if you knew that in the past builder's sales reps referred to these people with this phrase, "Like shooting fish in a barrell."

They love to see buyers come in without representation.......

Thu Feb 26 2009, 14:49
____________...
Home Buyer
Texas

Why does the buyer not need representation when the seller (builder) is being represented? And why are you assuming that the selling agent is going to rebate a portion on the commission?

Thu Feb 26 2009, 14:08
Leveraged
Other/Just Looking
St Lucie West, FL

You do not need a Realtor for something like this.

Thu Feb 26 2009, 11:57
110% Ltv
Both Buyer and Seller
Boston, MA

There is no need to use a Realtor for something like this. Plus, you get 3% off the top. That will help when you want to resale.

Thu Feb 26 2009, 11:53
____________...
Home Buyer
Texas

In PA, many sites state that "buyers agent must accompany on first visit." As mentioned below, this is so there's no question as to procuring cause. However, given the current market, I don't think the builder or the builder's agent is going to let something like your buyer representation kill a deal.

Thu Feb 26 2009, 07:16
Jerri Furniss
Agent
43081

Go back and take your own Realtor with you. Unless this builder rep has been in constant contact with you for the last 12 months, no one is going to question you. Besides, you need your own representation!!

I say go for it!

Best of luck.

Wed Feb 25 2009, 16:36
Jackie Hamilton
Agent
15241

Charlie, Stephanie mentioned procurring cause which does happen in PA. If the site agent did indeed keep in contact with you during the course of the year there could be an argument for procurring cause. However, this is something that youre buyer's agent could work out with the other agent. With Ryan and Heartland homes, the buyer's agent registers you at the sites you're interested in. Some Moranda plans do not co-broke which means they don't pay a commission to the buyer's agent. Some new construction developments also have a THRESHOLD RULE APPLIES, which means that your agent needs to introduce you to the onsite agent, otherwise, dual agency will prevail and your agent is out of the picture. Your first conversation with an agent is go over the consumer notice which explains the different agency relationships you can enter in with an agent (this is not a contract but is required by law to be provided to a consumer of real estate in the PA) and the Business Relationship Agreement which at that point discussion about the agent's services, duties and compensation should be discussed. Good Luck!

Wed Feb 25 2009, 14:02
Brian Teyssier
Agent
15241

Charlie,

Thanks for the question. I live in Pittsburgh and work for Keller Williams. My group represents custom new construction homes and we can represent you as a buyer's agent as well at which point and time you will sign a "buyer agency" agreement and acknowledge that we are "dual agents'. The time frame will be set up by you and I on the contract.

Now, if you are referring to the mass producing, cookie cutter new construction like Heartland Homes, Ryan Homes and Maronda (by the way, there is nothing wrong with any of these products being "cookie cutter") then they each have their own time frame. I recall 2 months for one of them. If you were to go over a year, I do not see any problem. I would recommend having your agent contact the builder rep before the meeting and tell them they are brining in a buyer. It will be between the builder rep and your agent to make sure the agent gets paid. I would recommend always having a Realtor represent you as the builder pays the commission, not you and the builder rep IS NOT a dual agent. So, you would have 0 representation.

Hope this helps, it go a little longer than I would have liked. Good luck.

Wed Feb 25 2009, 08:44
Stephanie McCar...
Agent
Grayson, GA

You can decide to be represented and have your own buyer agent at any time during the transaction in my state of Georgia - the hitch is that depending on the chain of events, you may be responsible for paying the commission of that agent.
We have a test that is caused "procuring cause". In Georgia it makes a difference if the subdivision agent has stayed in contact with you, provided information to you now and then, versus, you visited with her on-site and never heard from her again.
It sounds like you now have a buyer agent or at least have one in mind that you would now like to have represent you. Ask that agent about the situation and what you will likely encounter in your state.
Finally, just because you spoke to an on-site agent in a subdivision that does not mean that she was representing you. She either works directly for, or was hired by the builder and represents the builder or developer, as the seller's agent or listing agent. In real estate there is a difference between a "customer" and a "client." All agents should make agency disclosure also.

Wed Feb 25 2009, 08:28
Leigh Watson
Agent
Fort Collins, CO

No, as long as you did not sign a buyer agreement with the on-site seller agent. Buyers should always have their own representation when working with new construction. A realtor is more easily able to negotiate and get more information on the new construction. Buyer's agency is free in Colorado, which is where I practice and currently, I am representing a buyer who is purchasing a new construction home.
When they went to the site by themselves, they were quoted a much higher base price and lot premium price than I was when I was calling on their behalf.
When purchasing a home, it is important to be represented.

Wed Feb 25 2009, 08:27
Andrew Himes, C...
Agent
Montgomery County, PA
FIRST ANSWER

With the state of new construction i have had buyers go to the builder and say that if you dont honor my Realtor, there are plenty of other sites that will. Most builders are now looking to do whatever they can to secure buyers and this is one that they are usually willing to bend on. Especially if you have not visited that same site for over a year. If you really like that community have your agent mention that you want your own representation and if they balk, tell them you will go elsewhere.

Wed Feb 25 2009, 08:24

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