Home Buying in Waltham>Question Details

Mady59, Home Buyer in Waltham, MA

if i buy directly from a builder and neither of us have an agent/realtor, what is the process for me to buy the house?

Asked by Mady59, Waltham, MA Wed Sep 30, 2009

I saw the house as it was being constructed and expressed interest. Also, how would I know how much the property is worth?

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8
Hi Mandy,
Often Buyers assume that buying direct from the seller or in some cases, the Seller's agent they can negotiate a discount. Though this may be possible, as others have pointed out, not having an agent involved helps out the seller more than the buyer. But as for the process, it is all the same. Negotiations have to be made, inspections held, review of contracts, keeping an eye on your contingencies and dates of performance. Certainly your attorney can do assist, but do not expect that extra hand holding to come for free. Considering how many sleepless nights I have had on behalf of my buyers, I can not imagine why you would want to go it alone. But that all being said, my last point would be; if you have already seen a property without an agent or the disclosure that you have a buyers agent, will likely not be to your agent's advantage. The seller may elect not to compensate the agent after the fact.

My best wishes to you.
0 votes Thank Flag Link Thu Oct 15, 2009
Hi: You at least need a real estate attorney and since I live and work in the area I can recommend a few to choose from. This is a very important purchase for you and you should get representation. The fact that there are no realtors involved only benefits the builder, as he is the one who would pay the agent commission--there's no benefit to you and if he says he'll give you a price break without realtor involvement, how do you know it is? Who will do a comparative market analysis for you? I can do one for you and represent you as a buyer's agent--free to you--- if the builder agrees to pay a commission.
0 votes Thank Flag Link Sat Oct 3, 2009
Hi Mady59- I am a former builder, and now in the mortgage field. I've been on all angles of this. You should have your own RE attorney help in negotiating the deal and making sure things go smoothly. This could be the same attorney that ends up doing your closing and your new title insurance policy- but it doesn't have to. That would just save you a little money.
I know a couple of good Mass. attorneys that would work with you pretty cheaply if they were able to be the closing attorney on your new mortgage.
The other person is correct- just because it is a brand new home, doesn't mean than you can avoid having your own home inspection done. Its still worth it- even if its more of an educational tool for you.
If you need any help on this, or the mortgage, please let me know. Thanks and good luck,

Ken L.
0 votes Thank Flag Link Fri Oct 2, 2009
Anyone can buy or sell a house and it does not require a Real Estate Broker, but there are so many challenges to face, and so much to learn about the process of buying a home, that doing it on your own would be a real risk.

Normally, the seller would have an employment contract with his/her broker to sell the home for a fee. Part of that fee is typically paid to the buyer's agent at closing. If I were representing you as your agent, and I knew that the seller was not represented, I would approach the seller and ask them if they would be willing to offer compensation for bringing a buyer to the table. If they said no, it would be my option as the agent to take you on as a client free of charge, or I might discuss a potential fee with you. It really all depends.

Either way, the answer to your question is, "the process is very complicated, and there are a few hudred things that can go wrong."

You really need representation to get through this with as little turbulence as possible.
0 votes Thank Flag Link Thu Oct 1, 2009
This is why you need an exclusive buyers agent to help you value the property. The builder and builders real estate agent want you to pay the highest price regardless if that is what it is worth in this market. A buyer broker will give you the honest truth about the value and help you come up with an offer price because they represent your interests only.

If you still dont think having a realtor is valuable then you should at the very least hire a real estate attorney to help review the offer contract and the purchase and sale contract.

If you want non binding advice on how to proceed feel free to email help@territoryre.com or call 617 848 5407 extension 707

http://www.bostontre.com/Buy.aspx&utm_campaign=TRULIAVOI…
0 votes Thank Flag Link Thu Oct 1, 2009
Mady

I agree -- even though this is a builder --- you NEED a home inspection. You need a Purchase & Sales Agreement - a buyers agent can represent you at NO charge to you. Commission can be settled within the price of the property.

If I can be of assstance, please give me a call. I am a Certified Buyers Agent in MA & RI.
0 votes Thank Flag Link Thu Oct 1, 2009
Mady,

If you can without it costing you, bring a Realtor into the process. It could save you money and headaches, Most homes are a big expense. You should arm yourself with all the experise you can get. This forum is helpful, but limited, There are many intricacies that playout in the process that could pose problems now or in the future.
If the seller won't pay a commission and you don't want to pay for the service, at least get a qualified attorney that represents you involved immediately. The money it will cost you is well worth it.
In any case, it is best to have someone negotiating for you.
Check out the blog in my profile - "Negotiating Tips"
0 votes Thank Flag Link Thu Oct 1, 2009
To buy the house, you will have to work out the details with the builder. See if the builder has there own contract that they use. If you go this route, I would strongly recommend having an attorney look over the contract before signing anything.

You will have to find out what similar house in the area are selling for to find out how much the house may be worth.
0 votes Thank Flag Link Wed Sep 30, 2009
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