Home Buying in Cinco Ranch>Question Details

gloria_rosa_…, Home Buyer in Houston, TX

Should I get a realtor if I am planning on buying a new house from a builder?

Asked by gloria_rosa_bonilla, Houston, TX Thu Dec 15, 2011

My husband and I are first time home buyers and we are thinking about buying a brand new house that hasn't been built yet. I was wondering should we still get a realtor? Also are there any important questions we should ask the builders?

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Answers

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Bill Eckler-Florida,’s answer
Gloria,

Thank you for offering your question about representation for new construction.

Ask any new construction sales person and they''ll most certainly tell you that you don't need an agent and that they can take care of everything involved in the transaction. This may be true but they will take care of things to the builders benefit. Since they work for the builder would t be reasonable to expect that when push came to shove that they would take your position.......

Seeking the support of a local real estate professional that know the builder, has sold property there previously, that has a real understanding of past promotions and sales incentives and will be able to advocate for you is highly recommended.

There are so many ways an agent can advocate for you. Two points that are often made are to make sure you go to the builder with pre-approved funding from your own lender. Secondly, many agents will assist you by following the construction with you, keeping you apprised of progress as well as making you aware of concerns as they occur.

Builders love seeing buyers enter their model homes without an agent.....as one so clearly stated, "it's like shooting fish in a barrel." Make sure you're not one of those fish!

Bill
3 votes Thank Flag Link Sat Dec 17, 2011
BEST ANSWER
Yes, you absolutely should have a buyer broker representing you and yes there are questions you will need to go through with the builder and an experienced Buyer Broker will help you do so.

Note :my use of the word experienced. This is critical do not consider anyone for your buyer broker who hasn't been doing this at least 7 years and you want to know that they have experience in new construction as well.

The builder represents themselves and honestly I would not trust most builders as far as I could throw them They will insist on using their own contracts and it should not surprise you they are weighted in favor of the builder. They literally drool at the thoughts of potential customers like you as you have no idea what you're doing at this point.

I've attached a link to a recent blog I posted here on Trulia about how to choose a Realtor.

I wish you the best of luck.
0 votes Thank Flag Link Fri Dec 16, 2011
Gloria, Thought I would chime in from a lenders perspective: I agree with these agents 1000%! And, I suggest you take it a few steps further: Be sure to hire your own home inspector. Do not rely on the local building inspectors to protect your interests. Secondly, do not be railroaded into using the builders lender. Most builders will offer incentives to work with their chosen lender; however, when the numbers are crunched you are usually better off securing your own financing. In a very real sense, you should have your own "team" of professionals working on your behalf, not the builder. It is not an adversarial position, as much as understanding that the builder is only interested in his/her bottom line. Best to you!
2 votes Thank Flag Link Fri Dec 16, 2011
Hi Gloria,
You have a lot of answers to sift through. I have been a broker for 11 years and the significant other of a custom home builder for many years.. While any realtor would love to represent you in the purchase of your newly built home ( they earn a commission) the truth is that there isn't a lot of negotiation when it comes to buying a new construction home as their is in a resale home. Further more, knowing that the builder would be saving any commission he would have paid to "your realtor" you should be able to negotiate a portion of that off your sale price or towards upgrades. I strongly recommend hiring a good Real Estate attorney and have them review your contract prior to signing it. Any good builder will not have a problem with this. Check around your local area for reputable builders that pay their subcontractors timely and it would be a good idea to check with your city or county where the builders file for their building permits. you can gain valuable information on builders reputations, experience etc... local BBB is helpful too. Bottom line is, no you don't need a realtor to help you negotiate a new construction purchase.
1 vote Thank Flag Link Fri Dec 23, 2011
I agree with them, an experienced realtor may help you choose a constructor and also can help you negotiate so that you can save some money. But try to speak with at least 3 realtors so that you will have some ideas too.
1 vote Thank Flag Link Fri Dec 23, 2011
You don't always have to have a realtor when buying a home. But it sounds like from your questions, you haven't done your homework. Only do it on your own, when you have thoroughly researched the process and know what you want in a new home or in building a home. Don't let these realtors fool you - it can be done!
1 vote Thank Flag Link Thu Dec 22, 2011
As with all real estate purchases, buyers should hire a Realtor to work for them. While it may be legal for the builder's agent to represent you, it is like trying to serve two masters. Remember, they are primarily interested in getting their builder the better deal...
1 vote Thank Flag Link Wed Dec 21, 2011
I always advise buyers to work with a Realtor when dealing with a new home builder. Remember, no matter how nice they are, the on-site salesperson in the model home represents the interests of the builder - not your interests. In Indiana, where I live, there is no price break for a buyer who is not working with a Realtor, so why not have someone who is on your side. A Realtor can help you make some smart decisions in picking a floor plan and elevation that will be marketable when it's time for you to sell your house. When I work with buyers on new construction, I have a list of items that I review with them that can make a big difference in how well their new home suits their lifestyle.
What should you ask the builder? In today's economy I would want to know how many homes he built in the past year. How many were built on contract and how many were "spec" homes? What is his timetable for completing my house? How often is the builder himself actually on site while my house is under sonstruction? How long have his subs worked for him? Ask for the names of 4 or 5 very recent customers of his, and talk to them about their experience with the builder. How does he follow up on problems after completion? What is his warranty? And lots of questions about his experience level.
1 vote Thank Flag Link Wed Dec 21, 2011
Gloria...you answered your own question with the first sentence. You are first time home buyers, so absolutely yes. However, interview your agent and make sure they have experience with new construction and have represented at least a dozen of new construction clients. There are way too many issues that can come up without representation.

Good luck!
1 vote Thank Flag Link Mon Dec 19, 2011
Looks like you have a resounding YES! Those of us who represents buyers with new construction routinely see the value. The key to remember is the new home sales agent represents the builder, a realtor represents you. Beyond the value of negotiation with the new home agent, a realtor who routinely works in new sales has a deeper understanding of the builder's pricing, incentives, bonuses, floor plans, quality of construction, community lifestyle to match your family needs, and much more. All of this works in your favor to ensure you purchase what you want, where you want, and at a price that meets your needs.

Also a real estate agent that lives and works in the area is a plus in terms of community information, schools, shopping, commute times, etc.

Randy Emery
Weichert, Relators-Wayne Murray Properties
(O): 281-243-4500
(C): 630-621-8882
1 vote Thank Flag Link Fri Dec 16, 2011
Hello Gloria!

As many of my colleagues have said already, it is important to have a realtor with you. As many have pointed out, the sales people work for the builder. It's just like buying a new car, if you are not careful, they will always get you in the end. One move builders try is offering you upgrades for free and then not including them in the contract, so after the house is built, you complain that ut wasn't done and then you have no leg to stand on. The important thing is to make sure you get a realtor with knowledge. When new builders, it is not about negotiations. Anyone can "negotiate" a contract. You start low, they start high, and you go back and forth.......make sure you pick someone who knows the questions to ask the builder, someone who knows the are you are buying in. Interview your realtor. Interview 5 or 6. The most important thing is you get along. Just like any business relationship, it won;t work if you can't communicate with them. Please let us know if you have any other questions and my colleauges or myself will certainly be there to answer. Good luck!
1 vote Thank Flag Link Thu Dec 15, 2011
Dear Gloria:

YES, you should get a Realtor to represent YOU, the buyer - the sales counselor at a new home community works for the SELLER/BUILDER. Buying a "new" home vs. an "existing" home still is a negotiation process. Reputable Realtors know how to negotiate on your behalf regarding sales price, upgrades, options, financing terms and more.

Additionally, Realtors can guide you regarding the quality of construction. Lots of new homes look pretty, especially the model homes that have several upgrades incorporated, but you also need to know about the builder's structural/construction process, the warranties it provides, taxes, development fees, if any, etc.

A qualified Realtor also can assist you in obtaining financing. New home builders often offer buyers incentives if they use the builder's preferred lender. Your Realtor can help you evaluate whether using the builder's lender or a different lender is the right way for you.

As an Accredited Buyer Representative who has had extensive EXTRA training in working for buyers, I've represented numerous first-time buyers. The homebuying process, beginning with the search for the right home and all the way through the closing, can be a bit daunting for a first-time buyer. Having a qualified Realtor you can rely on to look out for YOU and explain each step helps you make informed decisions.

And, typically the Realtor is paid by the seller, so what do you have to lose?

Please call me at 713-397-0734 or email me at rita.armstrong@garygreene.com if you'd like to discuss your homebuying search.
1 vote Thank Flag Link Thu Dec 15, 2011
Gloria,

The short answer is YES!! You always need a Realtor working for your best interest in any purchase of a home. Regardless if it is a resale home with a family selling or a business such as a builder and a new construction home. In fact, you need the Realtor MORE as this builder sells homes much more often than an single family and could take advantage of you.

Now most builders build a quality home, but might not tell you things you can do to protect yourself. This includes reviewing of sales in the area to confirm the price you are paying is far, allowing you to inspect the home in multiple stages VS only once when completed, reviewng the pros/cons of upgrades on a home and so much more. Finally, some builders might encourage you not to have a Realtor and thus "save" the commissions off the sales price. Guess what, the commissions come from a marketing department and does not effect the sales price. In other words, you can have a Realtor, the builders pays the Realtor and you could possibly still get the discounts plus a lot more.

A Realtor that works for you and has the Accredited Buyer Representative designation (ABR) is specially trained to assist you with the purchase of a new or resale home. Also, what would you say if I told you I could possibly find you the same home 1-2yrs old and 20% less than the builder? The builder would never tell you about those homes that are on the market.

Lets talk about your needs and when you plan to get started. I have the ABR designation and have worked with 1st time buyers for 19yrs in the Katy/Houston area. Check my web site for more information.

Happy Holidays and Good Luck!

Mark McNitt
Bernstein Realty
m# 832-567-4357
1 vote Thank Flag Link Thu Dec 15, 2011
Yes yes and yes always have representation!
1 vote Thank Flag Link Thu Dec 15, 2011
Hello Gloria,
We have worked with too many folks who, like yourselves, bought new homes or built new homes. And why would one need us? ...to understand the process from looking at homes, comparing the different builders, understanding the advantages of going with spec homes vs. building, making certain that your lender is communicating with the builder and you, and finally possibly getting additional perks with financing and builder upgrades depending upon where you are precisely buying.
Also, it important to look at the WHOLE community and neighboring subdivisions - evaluating existing home sales. Its important to analyze because you don't want to buy in a neighborhood that is adjacent to one plagued with foreclosures. Will the new home Sales Counselor give you this VERY important information? I think not. And as Jim Sweat mentioned below, it costs you nothing at all.
Brad Stevens
713-775-6569
1 vote Thank Flag Link Thu Dec 15, 2011
It may be different in other markets. The SW Florida builders in our area factor in an amount on each transaction that goes to the marketing fund that pays the Realtors. If an agent is not involved, the money still goes into the fund, so it doesn't cost you any extra to have an agent working for you. You also don't save any money by NOT having an agent. Your Realtor can help you compare different builders, neighborhoods, prices and values, just like if you were buying a pre-existing home.

Also, sometimes the builders are offering incentives that the Realtors know about, but you may not find out about if you go directly.

All of this could vary by market and the cooperation level of the builder.

I also have a few blogs on my Trulia profile that may be of use to you when considering values on homes. That information is pertinent all across the country.

All the Best,

Jim Sweat, ABR, CRS, GRI, CDPE, e-PRO, ILHM
Realtor
Sandals Realty http://www.ExplainShortSales.com
941-306-7384
Team@JimSweat.com
Web Reference: http://www.JimSweat.com
1 vote Thank Flag Link Thu Dec 15, 2011
Hi Gloria, a Realtor is fair and if you sign up with a Realtor as a Buyer's rep they have a fiduciary duty to put your interest first. So it good for a buyer to be represented.
0 votes Thank Flag Link Sun Dec 23, 2012
Congrats on looking to buy your first, new home! There are some great realtors here and I also work with some great local to the Houston area.

I would also love to help you with the insurance portion of becoming a home owner. I would be glad to provide you with a home insurance quote so that you would know what the cost of insurance would be. Please contact me at any time and it would be my pleasure working with you.

Cragen Buresh
Sales Representative
Auto – Home – Life - Annuities

3000 Research Forest Dr, Ste 200
The Woodlands, TX 77381
Tel: (281) 364-1090 ext 08391

Cragen.Buresh@LibertyMutual.com
http://www.Libertymutual.com
0 votes Thank Flag Link Thu Dec 20, 2012
Absolutely! Your REALTOR® can negotiate on your behalf with the builder to get you a better price, free upgrades or a combination of both.
0 votes Thank Flag Link Thu Dec 20, 2012
Yes, you absolutely need a buyer's agent to represent you when building with a builder. The listing agent is tied more closely to the seller and his goals even more so than on a pre-owned listed home. The listing agent or manning agent only sells their products and they practice getting more out of the buyer than the buyer wants to give, be it money, time, or less upgrades. If you look back at what has sold in a subdviison and check who was represented and who wasn't and who got the better deal...it's always represented buyers. There are many important questions to ask and I hope your new realtor goes over these with you as you need to get off on the right foot with a builder early on in the process.
Good Luck!
0 votes Thank Flag Link Thu Dec 20, 2012
Just remember that the builders rep works for the builder not you. I'm sure they will be fair and honest but they may not tell you everything you should know or help protect you in the contract. By all means get an inspection. I have worked with new construction and had my inspector find all kids of issues that needed repair, wasn't up to code etc. And that was on a half million dollar home.

Its a huge purchase and you are signing a legal contract. Lots of things can go wrong.
0 votes Thank Flag Link Mon Dec 17, 2012
Absolutely have your own Realtor. They will represent you, not the builder. Most important they can provide you with comparable home sales so you know if the builder is charging you more than the market will bear. Sometimes they can find a newer home with the same floorplan built by the same builder that is in foreclosure so you get an even better price! I wish you luck!
Cheers,
Betina
0 votes Thank Flag Link Fri May 25, 2012
Yes I always recommend people to get a realtor and it doesn't matter if it's your second home. You need someone that's knows the business and someone who's going to be working for you and not the seller. I'll love to help you please feel free to contact Anthony Taylor Realty or visit my website to find out info on me and my company. http://www.anthonytaylorrealty.com
0 votes Thank Flag Link Fri May 25, 2012
Yes. ALWAYS have a Buyers Agent. they look out for your best interests.

Was this answer helpful? Give it a "thumbs up" if so!

The Marie Souza Team - Top Selling on Cape Cod
Cape Cod Real Estate Services
Phone: 508-790-2000
info@mariesouzateam.com
http://www.MarieSouzaTeam.com
0 votes Thank Flag Link Fri Jan 13, 2012
Hi Gloria Rose,

You're many answers already but the bottom line is yes, definitely take an agent with you who will be representing your interests, not the builders. Many homebuyers make the mistake in thinking they will get the house for less money by not having an agent with them. This is not the case.

A good, experienced agent can save you a lot of money with a builder and knows the right questions to ask. For example, is there a Jacuzzi tub or a tub with jets? When you find out later that a Jacuzzi tub is merely the brand and there are no jets, it's too late.

Happy New Year and best of luck to you!

Elyse Berman, PA, ABR, GRI, ePRO
Realty Associates Florida Properties
9174 Glades Road
Boca Raton, FL 33434
561-716-7824
Mail to: Elyse@ElyseBerman.com
http://www.ElyseBerman.com
0 votes Thank Flag Link Fri Jan 13, 2012
They are all correct, the answer is yes. REALTORS® can find deals and the real bottom line that most buyers dont know about.
0 votes Thank Flag Link Thu Jan 12, 2012
Hi Gloria,
Happy New Year! I see many good responses below, but I did not see the question back to you, "Is the home listed opn your local MLS?" If not, then this would become a little more complicated. Most likely it is listed for sale on the MLS and also then apprears on Realtor.com. If it is an MLS listing the builder/owner has their own Realtor so you would at very first glance be at a disadvantage not having your own professioonal advocate managing and negotiating the transaction. I have sold many new construction properties and you absolutely want to have Professional, pro-active reprersentation as there is a myriad of issues and protocol that a competant agent can guide you through and protect your best interests.
I work 7 days a week so I am sure I can accommodate your schedule!
Thank you very much for reaching out to our real estate community.
Sincerely,
Realtor Lisa Jones, GREEN, ICREA, CIPS
Golden Key Achiever, over $50Million in recent residential sales!
HIGGINS GROUP
203-218-6664 Cell
203-529-3065 Private Fax
Email: LJones@HigginsGroup.com
My Agent Bio:
http://higginsgroup.com/agent/109-lisa-jones/?p=1&search…
0 votes Thank Flag Link Wed Jan 11, 2012
Happy New Year again, Gloria !

When you call me my answer is still OF COURSE. The main point is BEFORE you begin your search select a Realtor you trust and allow them to guide you to begin getting information and processes set up BEFORE you look at homes. There is some pre-planning and preparation we will help you with to make it much easier for your home buying processes.

Looking forward to helping you, Kathleen (281) 799-4002
0 votes Thank Flag Link Wed Jan 11, 2012
For everyone who said it will cost you nothing to hire a Realtor for the purpose of having representation in a new construction build job STOP LIEING to the public! Yes, the builder will pay the commission but, if the person says they are unrepresented and they want the 2-3% discount on the home many builders will concede this to the buyer. Builders will also give consumers better deals when they carry the note and do a construction perm loan. Everything is negotiable and on the table including Realtor commissions. Based on the way Gloria asked the question I do believe she needs good representation a good Realtor to guide her through the process of a new construction home purchase. In regard to Marks comments concerning lawsuits against parties involved in new construction he is correct. For new construction contracts there are 3 types: builder provided, Realtor provided and personal attorney provided. Most of the lawsuits are a result of the Realtor provided contracts as their first priority is to protect the interest of the Brokerage & Realtors, personal attorney provided (these are the most rare & many builders would not sign w/o some modifications) builder provided which focus on arbitration & mediation for resolution dispute and generally prohibit lawsuits. I personally believe the homeowner should have their attorney review the documents and make sure the contract is fair and balanced. The attorney should also explain any and all verbiage so the buyer has complete understanding of the contract. In closing I believe 90% + of the public NEED representation in conducting a real estate transactions and I am against dual agency (a huge lawsuit waiting to happen) even though it is allowed in our state.
Web Reference: http://www.randshomes.com
0 votes Thank Flag Link Wed Jan 11, 2012
Yes, Gloria....you not only should, but it would be an insane move not to.

NOTE: THIS ANSWER IS TOO LONG....SO HERE IS PART ONE!

First of all, in most states you do not pay the buyer's agent anything whatsoever. The seller/builder pays their comission. So why not get the best representation possible.....it costs you nothing.

Second, I am reminded of a visit from one of our corporate attorneys a couple of years back. He visited us during one of our weekly sales meetings. He asked this question: "What do you folks think is the number ONE legal problem/issue that is being litigated today in our courts?"
0 votes Thank Flag Link Tue Jan 10, 2012
Absolutely! Always always always have representation on your side, select a Realtor who is knowledgable in new construction and the contracts accordingly!
0 votes Thank Flag Link Sun Jan 8, 2012
Yes, yes yes! The agent working in the builder's office works for the builder, not you. Their job is to get the most money for you guessed it , the builder! You should have your own representaion, get a Buyers Agent to help you with this purchase. The Seller pays the Realtor fees, so your not saving money by not having help. A Realtor can provide you with a list of recently sold homes in the area, so you can see what the actual market value is. I have seen some builders list their homes for sale at $50-150 per square foot over the market price. Then they mark them down $20-40K to make the buyer feel like thay got a deal when in fact thats not the case. Also I would check the progress of the build out, and have an independant home inspection done, just like if it was a re-sale home. Builders are not perfect and their contractors and sub-contractors make mistakes. I wish you the best on your new home purchase!
Sincerely,
Betina
0 votes Thank Flag Link Mon Jan 2, 2012
Good Evening Gloria,

I would HIGHLY recommend having a Buyer's Agent represent both you & your husband! The Sales Counselor represents the builder. That rep's #1 priority is to make the builder money. A Buyer's Agent represents you and he/she will make sure to get you the best deal possible. Speak to an agent that has experience with new home construction. Also, I would HIGHLY recommend for you to get a home inspection once the house is built.

I wish you and your husband the best!!

Make it a Blessed Day!

Tamika A. Goree
Web Reference: http://tgoree.haloagent.com
0 votes Thank Flag Link Fri Dec 30, 2011
Hello Again Gloria! Hope your Christmas was blessed. AGAIN !!! YES, get a realtor. Call me and let's get started. I know it is difficult to accomplish all your plans during the holidays but putting a realtor on your side is the first and best step. Take your realtor (ME) with you to visit the builders and I can help.

Happy New Year, Kathleen

(281) 799-4002
0 votes Thank Flag Link Tue Dec 27, 2011
Absolutely. You want to be able to have someone who represents only you. You can be confident when you share personal information that the seller should not have. Be sure to read over all the fine print with your Realtor. As you read, you will have many questions that need to be answered before you purchase. Be sure you know all the timelines for inspections, appraisals, and loans. Be sure you know under what conditions you can change your mind and still get your deposit back. Understand clearly the builder what is guaranteed and how to get repairs made. Remember that nothing is perfect, so ask lots of questions and do all inspections.
0 votes Thank Flag Link Tue Dec 27, 2011
Most Definitely and preferably one that acts as a Single Agent meaning he/she represents only one side - yours and that has experience with new construction properties. The realtor will be instrumental in formulating the right questions to the builder.

Ivan J Gonzalez, MBA
The Realtor Who HATS It All
Cocho Int`l Realty
Web Reference: http://ivanjgonzalez.com
0 votes Thank Flag Link Tue Dec 27, 2011
Realtors represent you so I would get a realtor it doesn't cost you any money to use realtor. Make sure they are not working for the seller if possible..
0 votes Thank Flag Link Mon Dec 26, 2011
Yes you should.There are many forms and legal contracts that must be filled out correctly.also guarantees and waranty's.Previous customers is the very first question and folks you can call that were customers.Years as a licensed contractor? Any existing judgements?.Take a copy of his contract to your attorney and have your attorney review before you sign.
Web Reference: http://www.shamrock13.com
0 votes Thank Flag Link Mon Dec 26, 2011
Gloria,

I agree with the previous answers. You definitely need a Realtor to 'represent' you during the purchase of a new home from a builder. As honest and cordial as they may be, the fact is that they still 'represent' the builder and have the builders best interest at heart, not yours. A Realtor will be more suited to negotiate in your behalf, guide you throught the process, and most of all, have your best interest at heart. The builders are glad to work with Buyer's Agents and have built it into the price and their budget to pay the Realtor's commissions. Most builders either prefer or require you to come in with your Realtor the first time you visit the project. Best of success.

Robert McGuire ASR
Realtor/Consultant
Your Castle Real Estate
1776 S. Jackson St. #412
Denver CO 80210
0 votes Thank Flag Link Sat Dec 24, 2011
You definitely should, as builders love working with realtors and pays all of their fees and in fact budget for it as aprt of their marketing. Most good agents will even have relationships with Builders and will give you an Open House Guest Pass. That way you can use it and the on site sales person will call your agent to follow up, not you.
The Benefit to you is REPRESENTATION, as the on site sales person represents the Builder.

Marco Gomez
The Good Life Team
Keller Williams Landmark II
Serving Queens, Brooklyn & Nassau
0 votes Thank Flag Link Fri Dec 23, 2011
Realtors work with builders all of the time, we are sent updates every day on new products, special pricing and new communities. Every time a builder wants to market a new development, the realtors are invited to preview it. .

Can you go to a builder by yourself? Absolutely! If you have already contacted the builder (If you know the builder you would like to work with.) Then it probably is late to call a realtor.

If you are working with a realtor and have not contacted a builder then it would be a good idea for you to look at several properties and communities that may be of interest to you before making your final selection. This will give you a broader perspective and help you narrow down exactly what you are looking for.

Also, for your protection makes sure that you get a good real estate attorney to go over the contract and the "Home Owner's Association" information, should there be an HOA. You need to know exactly what you are getting into before you build a home. They can also help you with some suggestions regarding the builders time line.

Several of the realtors below have given you some suggestions on the information and where to get it regarding your builder, as well as questions you should be asking.

This is your first house so take the time and shop around.
0 votes Thank Flag Link Fri Dec 23, 2011
Yes you should have a Realtor representing you. Builders have small print in their contracts that require additional fees to be paid by the buyer and you would want an experienced realtor to review your purchase agreement with you. Builders have fees that can easily be waived or that should be payed by them such as environmental impact fees, builder fee, additional fees for keys...... I used to work for builders and all of the fees are 100% negotiable and so is the price! Normally builders will pay a Realtor for bringing a buyer in to their properties so you will not have to pay the agent.
0 votes Thank Flag Link Fri Dec 23, 2011
I'd suggest finding a good realtor with experience in new construction. The builder's agent is looking out for the bulder's interests so you may want to have an experienced agent representing you in the process. A good agent will be able to help advise you on options that can help increase your return on investment and which ones you can do later and save some money. A good agent can help you through the process and make sure you have all the information you need to make the right decisions for you and your family.
0 votes Thank Flag Link Thu Dec 22, 2011
Very often an experienced Realtor knows the ins and outs of new construction so the right Realtor can prove to be a tremendous asset to you. Furthermore, if the builder already has a listing Realtor and you go directly to the builder it is traditional in our area that the listing agent gets paid both the listing and the sale commissions even if you have no contact with the listing agent, so in that case you may as well have a (Realtor; buyer’s agent) for representation because it would not cost you anymore and it may even save you a little money or headache. Maybe the your realtor knows something about builder that you should know. Buyers build maybe a couple - few times in their life, but a successful Realtor may be involved in several hundred new builds in their career. Yes talk to a Realtor but only work with one that brings experience to the table.
0 votes Thank Flag Link Thu Dec 22, 2011
The good news for you being a buyer typically a seller/builder will pay the Real Estate Comissions - so getting expert advise it is no charge to you. We as agents are looking after your best interest.
A seller/Builder that represents you may not work as hard to get the best terms for you and give you 100% representation for no money out of your pocket.
In a long drawn out answer my anser is YES get your own realtor to advise you in your home purchase.. You will be happy that you did.
0 votes Thank Flag Link Thu Dec 22, 2011
You should always have a realtor when dealing with a builder. If the laws in Texas are like they are here in IL, the people working for the builder have no obligation to make sure you get the best deal. Their job is to make sure the builder makes the most money. The agent has a legal duty to make sure you are protected and get the best deal possible. If you and your husband are hand, one key question to ask the builder is about saving money by doing some things yourself, like painting, and watch out for those upgrades, that is how the builder makes most of his profit. I have seen them try to sell a $100 fireplace screen to the buyer for $500+. Shop the local hardware store for the little things like that which you are wiling to do yourself and compare the cost to have the builder do it or do it yourself.
0 votes Thank Flag Link Thu Dec 22, 2011
Ok everyone’s agreed on the fact you should have an agent and I agree, but let me provide you with a little perspective on the question from both sides of the fence since I am a Home Builder and Realtor. When you choose your Realtor have some criteria for picking the best person to represent you. My advice follows:
1) Interview 3-5 Realtors
2) They should be full time or have a VERY flexible part time job
3) They should have participated at least 15 transactions last year
4) They should have participated in at least 2 build jobs last year
5) They must attend all meetings with the builder or builder’s representative which you are present. This can be as many as 15-20 meetings; many agents will not attend these after the contract is signed. You need their representation throughout the process not just at the signing of the contract.
6) They must participate in all negotiations involving change orders and should assist in providing the proper documentation and amendments to the contract.
7) Lastly run a background check and try to obtain credit scores (ask them to provide) on both the Builder and the Realtor. You will be surprised that some the people offering financial advice to you and yours are not solvent and may be inclined to say or do anything to close a deal.
I’m sure I left something off this list but it’s a place to start, if I was to rank this as my top 3 it would be #5, 6 & 7. Many will not fit all 7 items but try to choose someone who fits the majority of the list. Hope this helps, it was meant to give you another perspective not just the same perspective
Web Reference: http://www.randshomes.com
0 votes Thank Flag Link Thu Dec 22, 2011
You should always have an Agent (REALTOR) represent you on your behalf anytime you will be entering into more than a casual conversation about Real Estate, whether it be a New Home Builder, Resale, or REO.
The best time to interview and select your REALTOR is BEFORE you go out "Window Shopping". Your local REALTOR will be able to negotiate and secure the best possible transaction for you.
0 votes Thank Flag Link Thu Dec 22, 2011
Yes, choose a reputable Realtor first. Have them help you find the best builder to suit your needs. Experienced Realtors know about the good and bad experiences with builders and will help you choose the right one. Most builders quote the same price with or without a broker involved.
0 votes Thank Flag Link Thu Dec 22, 2011
Absolutely - get a Realtor. It is truly helpful to have an expert on your side. Make sure they are familiar with new construction, first time buyers, and your area; check up on their credentials, ask them lots of questions and make sure you choose someone who is the right fit for you.
Web Reference: http://www.cthomeadvice.com
0 votes Thank Flag Link Thu Dec 22, 2011
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