Home Buying in 75094>Question Details

BuyingTips, Home Buyer in Dallas, TX

Real Estate agent

Asked by BuyingTips, Dallas, TX Tue Feb 5, 2013

I'm buying a new brand home where the builder does not negotiate for the base price and premium. Should I go with a real estate agent who will give me 1.5% back or someone who won't give me?

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Sandy Setliff’s answer
PS - It's possible you can get good service from a discounted broker/realtor and, you can also get what you pay for...discounted effort for discounted price. In this market good agents are busy. Their time is at a premium. If you had a $150,000 tax problem would you want a discounted CPA to deal with it or if you were facing surgery would you want a discounted doctor to perform the surgery? If you chose an agent who will stand-up for their commission you likely will have chosen someone who will stand-up for you in the negotiations for your new home.
1 vote Thank Flag Link Tue Feb 5, 2013
Can you explain the non-discounted efforts from an agent who does not pay back to the buyer?
Flag Tue Feb 5, 2013
The builder's representative works for the builder, with the builder's best interests in mind. When you hire a Realtor to represent you...they work for you and keep your best interests at heart. It really doesn't matter who you are buying the home from, you should have someone on your side that is there to protect your best interest.

Regarding a Realtor who will give you a rebate - as many have said before me - you get what you pay for. As a buyer, there is usually not any cost to you for a Realtor to represent you (because the seller's pay the Realtor commissions). However, if you ask for an agent to cut your commission they may also cut some of the services they provide to you. Since there is usually no cost to you as a buyer, why not take advantage of a full-service Realtor...you will be glad that you did.

If you have further questions, and you are not already working with another agent, I would love to speak with you to answer your questions and help you get started on track to buy your new home.

Melissa Hailey - North Texas Top Team, Realtors
Coldwell Banker Jane Henry Realtors

0 votes Thank Flag Link Tue Feb 5, 2013
If a builder does not have a best interest in their customers, why do them make better floor plans, options, upgrades, rebates and also making their homes in prime locations?
Flag Wed Feb 6, 2013
So many issues....

Understand that builders woul find themselves in a heck of a mess if the did negotiate lower prices after others had bought at higher amounts. Discounting their very own prices would also errode their own market value and jeopardize their future appraisals.

There are ways in which builders can offer a carrot to potential buyers. They may not advertise or like doing so but they can and do offer incentives on upgrades. By offering these options the base price of the home remains in tact and everyone is happy...except maybe the builder.

Using a local real estate professional that has had dealings with this builder could bring you the edge you require to save some money but discounting their commission will likely not gain you any favors. Think of it.....by expecting a 1.5% kickback on a 3% commission fee will essentially put more in your pocket than the agent will recieve in the end. Fair? I should think not!

0 votes Thank Flag Link Tue Feb 5, 2013
That is not fair. But what would I get from an agent who does not give a 'kickback' compared to someone who gives. Is the service the same like representing?
Flag Tue Feb 5, 2013
You would be wise to go with a company that shares their commission with their buyer clients as a matter of policy. That is assuming the builder pays a real estate fee. That way you are assured the benefit of a full time Agent that will help you in every step of the transaction as well as share his/her commission with you at closing!

We would be happy to answer any other questions you have and would like to welcome you as a client. We are a commission share company!

Bob Luckock - Broker
0 votes Thank Flag Link Tue Feb 5, 2013
I currently live and work the Murphy Sachse Wylie area and would be happy to sit down and discuss your needs, but I do not reduce prices on my services. Agent who are full time work very hard to keep up with the areas they work and the expense of being a good agent. We have no way of telling how much time a client buying or selling is going to take. Do you really trust someone that is going to cut a commission by 50%, just how important is that making you in the Agents dealings? In the buying senerio you don.t pay the commission so you are being handed a common anyway. Choose your agent because he or she tells you the truth and you feel you can trust them.
0 votes Thank Flag Link Tue Feb 5, 2013
What is the truth you know that the Builder does not talk to me directly?
Flag Tue Feb 5, 2013
So I am not going to speak of what agents do or not do in a public forum, but I would be happy to sit down with you perhaps explain the differences with you.

I think it depends on what you want for service. There might be a lawyer that will just review your contract for $395 or someone who will be out on site every couple of weeks, watching your project, taking pictures, attending the meetings between you and your builder, etc.

Just the lender they recommend might save you more than what you save, so you have to be careful when evaluating discounts like this.

If and when something goes wrong, are they just going to give you advice over the phone and let you go out and deal with the sales rep, or are they going to go with you and handle the negotiations? There is a difference.

You might also want to review my website about the things that can and do go wrong during the building process. As we ramp up quickly after almost a five year slowdown, we'll start to see more of these issues again.

0 votes Thank Flag Link Tue Feb 5, 2013
Bruce Lynn, Real Estate Pro in Coppell, TX
It's usually best to have someone represent your interests when purchasing a home whether you're buying from individuals or builders. While we all want to save $, make sure you are getting full service from your agent with or without a discount. It's likely you are making one of the biggest investments of your life and you want a qualified, experienced professional supporting you in the transaction.

Sandy Setliff
0 votes Thank Flag Link Tue Feb 5, 2013
What do you mean by full service (vs half service)?
Flag Tue Feb 5, 2013
Builders often do not negotiate a price, it ruins their comps for future homes they sell when they do. You can sometimes negotiate for some upgrades.
0 votes Thank Flag Link Tue Feb 5, 2013
Thank you Sir.
Flag Tue Feb 5, 2013
When working with builders it is always great to work with an agent. Agents are able to negotiate a price for you. One of my services I do provide to my clients is 1% cash back on all new built homes. I would love to help you with your purchase. Feel free to contact me at by email or phone.

Tenesha Lusk
Web Reference: http://teneshalusk.c21jf.us
0 votes Thank Flag Link Tue Feb 5, 2013
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