Home Buying in 45202>Question Details

John, Home Buyer in Cincinnati, OH

Can I bring a realtor into the mix if I've already discussed building a new home with a builder?

Asked by John, Cincinnati, OH Mon Sep 8, 2008

I haven't signed anything with the builder, but I have begun discussing options and upgrades in some detail already.

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10
The answer is...It depends on the builder. As long as you haven't signed anything, you might be able to bring in an agent. The best thing is to talk to your agent and discuss the situation one on one. Then, you can tell the builder you don't feel comfortable moving forward without your agent helping you at this stage in the process.

Good luck!
0 votes Thank Flag Link Wed Sep 24, 2008
All the other answers are good counsel. However, we find that the buyer is pretty much in the driver's seat. If you choose to use a Realtor to represent you in a transaction with the builder, they would be foolish to say no in this market. The cost of the commission is a small price to pay for a sale. I am representing a buyer currently that found themselves in just that situation. They brought me in, the builder registered me and we had a firm contract within two days. Closing is October 15. Call me and let me get to work for you.
0 votes Thank Flag Link Tue Sep 9, 2008
John
Without knowing who the builder is it is hard to say. Some of the builders in our area use REALTORS® for their reps. Other builders use employees. If the rep works directly for the buider it may be easier to bring someone to represent you at this point.
Web Reference: http://www.find1home.com
0 votes Thank Flag Link Tue Sep 9, 2008
yes and no, if you havent signed anything you could definately bring someone in to represent you, it would be in your best interest especially in new construction for someone to look out for you. however most builders have a policy where the agent must accompany the buyer on the first visit for that agent to be paid a commission.
Web Reference: http://www.ScottSellsNH.com
0 votes Thank Flag Link Tue Sep 9, 2008
John,
I'm glad you decided that having someone to represent you is a good idea.This is especially true as far as new home sales. The new home rep is a salesman for the builder who works on commission so they really owe their allegiance to the builder. As a new home specialist I realize how much is involved in a new home purchase and it is good to have someone watching over things for you and interacting with the builder. Most builders require that you register your agent with them in order for the agent to receive a commission. If you have simply visited the builder but have not signed a contract, it may not be too late to get the agent registered. As someone else mentioned, pricing may have been quoted without a commission included but most builders, in this market, will still be willing to work with the agent and provide commission in order to sell the home. Be sure to take your agent with you as you look at new homes. They can help you with decisions even at the early stages.
Good Luck in your home search.
0 votes Thank Flag Link Tue Sep 9, 2008
Hi John-
Typically a well known reputable builder will be ok with bringing an agent on board after you've begun discussions. However in CIncinnati we use " procuring cause" as a measure to see who gets the commission check. The agent that shows you a property first is the agent that is entitled to the commission. Same holds true for a builder. That said most agents and builders will honor the agent you are working with. Sound confusing? If so send me an email with the particulars and I can help you out. I've worked with many of the area builders and can give you better guidance if I know who you are dealing with.
Email me at sue.price@cbws.com
0 votes Thank Flag Link Mon Sep 8, 2008
Since you haven't signed a contract with the builder, he/she may have quoted you a price based on excluding the Realtor's participation. On the other hand it is a buyer's market. Say you get a concession from the builder to include to include your Realtor in the process and have their fee paid out the sales price...OK.... but the builder will probably want to "make up" this cost should you elect to have any changes made to home once construction begins -- usually at "retail prices".. Bottom line go over your building contract very carefully and try to document all forseen contingencies then and lock in price agreements then. You will be glad you did
0 votes Thank Flag Link Mon Sep 8, 2008
John-Regardless of what your Builder may say, you have the right to have someone working for you. If this builder has a problem with that --Walk away! There are many builders that are looking for qualified home buyers!
0 votes Thank Flag Link Mon Sep 8, 2008
Yes, you can, John. You can have a buyer's representative.
0 votes Thank Flag Link Mon Sep 8, 2008
Yes, however the agent may not get compensated as they did not register you with the builder.

Good luck!!
0 votes Thank Flag Link Mon Sep 8, 2008
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