Market Conditions in 45014>Question Details

Need2know, Home Buyer in 45014

I am looking to build a new home & need to know how to negotiate a good price on the home. The seller agent looked alarmed when I mentioned an

Asked by Need2know, 45014 Sun Sep 26, 2010

agent.

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Need2know the HBA frowns on builders that "give a deal" if you do not have representation. If the builder is listed through a local brokerage the compensation is already negotiated through the listing agreement. That covers the ability of the listing brokerage to compensate a buyers agent. If you use the builders rep which it sounds like you are then that person has a lot more to lose by no getting the builder the best deal. Also the builders rep will earn both the seller side and the buyer side of the compensation. This is what is know locally as a double dip.

So lets look at your situation. A home that you like in and area that you like and the sellers rep already knows this. At this point with the conversations you have had you need to use the builders rep and turn them into a dual agent. At that point they can not negotiate harder for one side than the other and they only represent the transaction. Good Luck and I hope you get what you want.
1 vote Thank Flag Link Sat Oct 9, 2010
Hello,

I recently wrote a trulia blog on making offers; make sure you see if it can assist you or your agent to negotiate/offer a better price.

http://www.trulia.com/blog/kevinolson/2010/09/making_an_offer

Best of luck, and don't worry about agents who look alarmed... all of us do from time to time.
1 vote Thank Flag Link Sun Sep 26, 2010
Did you view the home without your agent?
1 vote Thank Flag Link Sun Sep 26, 2010
Need2know,
A dual agent cannot advise you at all. An agent in a dual agency situation must stay neutral to both parties. What does that mean? The dual agent really doesn't represent either party in the transaction. The agent really just becomes a facilitator. The agent cannot pay you their commission either. You are not a licensed realtor. That is an agreement between the agent and the seller/builder. I am afraid that without having a buyer's agent, you are on your own.
0 votes Thank Flag Link Sat Oct 9, 2010
Thanks to all of you who responded before. What a wealth of knowledge and great advice!

We decided to explore building a new home after many, many, many months of looking at homes (short sales included) and couldn't find anything that we fell in love with (we used a realtor who did a fine job for us during that phase). So now we are closing in on the time where we meet with and try to build our home on paper with the dual agent with whom I spoke of in my last post. The builder's agent claims that there is no negotiation available for us not using a real estate agent, since they would have paid that out of a separate account?? Really? I feel that the "company" is saving, so I should also.

What are your thoughts on that?
0 votes Thank Flag Link Sat Oct 9, 2010
Have you sat down and discussed what options you have with a realtor and if building a new home is the best choice for you? I just wanted to double check as I had 3 clients this year that were stuck on buying a brand new home until I started showing them foreclosures that were only a few years old, move in condition, and a much lower price than the new builds they had looked at. I'm not trying to deter you from building a new home, I just want to make sure that you are going through this after exploring every option available today.
0 votes Thank Flag Link Fri Oct 1, 2010
Need2know also big builders require the Realtor® to escort their client to the first look to register their buyers. Some of the builders are cooperative and will allow after the fact registration. Others will make it a battle to pay the Realtors® brokerage compensation for the transaction. Sometimes they will not pay at all and expect the buyer to pay. Sometimes it is just the Realtor® knowing one particular builders rep to be able to get you registered and the best deal if you have been to their model already. I have done 3 new construction homes this year in 45014 and 45011 so let me know if I can help.
0 votes Thank Flag Link Mon Sep 27, 2010
Need,
Unless you signed a buyer’s agency agreement with the site agent, you are generally free to use whoever you want to. Site agents technically represent the builder, not the buyer. If you can find an agent who has successfully represented buyers in the development, you will have the benefit of their experience and your own representation.
0 votes Thank Flag Link Sun Sep 26, 2010
Why in the world would someone be alarmed if you mentioned wanting a Realtor® to represent you. That sounds like a guy that is selling a used car and gets upset when you want a mechanic to look at it. Need2know all you need to do is have your Realtor® run a sold comps report and a market absorbtion rate to help determine a fair price on a property in Fairfield. I have a closing this tuesday on a property located on Shady Lane and the seller may not have been jumping for joy but they took our offer.
0 votes Thank Flag Link Sun Sep 26, 2010
You need to feel comfortable when negotiating- whether it's a new home or a resale. If you are working with an agent- take time to discuss your concerns before you begin shopping. Builders have their own employees and /or agents -as long as you understand who they are representing and are comfortable with situation- there isn't any reason to not deal directly.
0 votes Thank Flag Link Sun Sep 26, 2010
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