Home Buying in Morrisville>Question Details

Paul Waters, Both Buyer and Seller in RDU, NC

What would a Buyer's Agent gain us?

Asked by Paul Waters, RDU, NC Thu Feb 19, 2009

We are hoping to buy a new construction home (KB Homes community, if anyone has experience).

Being a new-construction home, we don't "need" a buyer's agent. But, what advantages would we have if we did use a buyer's agent?

Both the wife and I own homes, so we're not new to home ownership, but this would be the first new-construction home for both of us.

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Answers

13
Why a Buyer's Agent? To get the best price, the best location, the best possibility of resale. On-site sales people are there to sell you a house. They love unrepresented buyers; it gives them an opportunity to move their less desired and older inventory. And they have many tactics to do so. Realtors who are experienced in new construction know which questions to ask, and often local Realtors have experience in the particular community. They may have access to sales histories and can advise you on price, terms, etc. Your agent is just that: YOUR agent.
1 vote Thank Flag Link Fri Apr 3, 2009
Hello Paul,

As with the previous answers, it's always best to have your own professional representation. The sellers agent is just that, the sellers agent. They owe their fudiciary to the builder and will work in their best interest. They are required by agency law to do so. Therefore, they are required to share any knowledge they have about you that may be advantageous to the seller, they you may provide them without really realizing. Therefore, it is always best to have a Buyers Agent handle all negotiations and communications with the sellers agent on your behalf. As a Buyers Agent, I am required to provide the Buyer with what I like to refer to as LOADS...Loyalty to you, Obey your lawful instructions, Accountable for monies, deposits, forms, etc, Disclosure of all material facts that could influence your decision making, Skill, care and deligence in respresenting and negotiating on your behalf.

Thanks and have a blessed day!
Melissa
melissa.moore55@yahoo.com
1 vote Thank Flag Link Thu Feb 19, 2009
For one protect your interests. The Sellers agent works only for the Seller not you. I have had many new construction home were the buyer has had a problem and been taken advatage of because they thought Sally Sue would help them when in truth Sally Sue is the Sellers representative is bounded by agency to do what is the best interest of the Seller/Builder not you. I would be happy to give you a name of a buyer who did what you are about too and tell you how in the end they were going to pay us as consultants to help them negotiate with the builder because they didn't believe the sellers agent who wrote the contract was acting in their behalf.

Secondly if you have a home to sell in the local market it gives you negotiation room on setting the comission structure on your existing home.

Hope this helps.

Joe Ward
518-8182
1 vote Thank Flag Link Thu Feb 19, 2009
Unfortunately, some people think that they'll save 3% without an agent when purchasing a new construction home. Most national builders know how many homes will be sold each year by agents and how many will be sold to buyers without agents. The builder builds the commission into his marketing budget. Say a builder knows that 83% of his sales are Realtor generated. He budgets for this. When you walk in without an agent, you're one of the 17% that he's budgeted for and you give him an opportunity to move lesser desired properties. Chances are, you'll pay more than you would have because you won't have the benefit of your agent's advice and experience, and also comps if available.
0 votes Thank Flag Link Fri Apr 3, 2009
You lose 3% if you use a Buyer's agent. No need to start ownership 3% in the hole.
0 votes Thank Flag Link Fri Apr 3, 2009
Hello Paul, in addition to all the advantages explained by my fellow Realtors below about having a Buyer's agent on you side, let me point out just a couple of things I normally do:

1. Based on my experience with each builder (by the way, I have sold at least 25 homes in Twin Lakes by KB Home), I design my negotiating strategy to help my clients. Experience really helps in this area.

2. I have a Buyer rebate program by which I contribute certain % of my commission towards my buyer's closing costs. This becomes very handy especially in these difficult times.
Web Reference: http://www.RealTriangle.com
0 votes Thank Flag Link Fri Apr 3, 2009
Paul,

Buyer's Agents will help you save money and time. The last thing you want to do in this kind of economy is overpay for a home. We know market conditions, neighborhood appreciation and what homes have recently sold for in the Greater Raleigh area, plus a lot of other pertinent information as part of the home buying process. What about pre-dry wall inspections, moldy wood that has gotten wet during construction, the house not appraising, price reductions on spec homes while you are building yours, these are all situations we are experienced in dealing with and give thought to before writing an offer!

Let us know if we can be of service. Our team is in Cary and has lots of experience with KB Homes.

Heather Sasser, Linda Trevor and Company .... 761-3815

A Buyer's Agent:
Help you create an appropriate offer.
Present the offer on your behalf.
Negotiate for you…and your interests!
Help you secure your mortgage.
Refer you to experts, such as attorneys, inspectors, insurance agents, land surveyors, and movers.
Advocate for you throughout the process.
Web Reference: http://www.LindaTrevor.com
0 votes Thank Flag Link Thu Feb 19, 2009
Paul,

All the previous answers are correct. Even though you've purchased homes in the past new construction is a little different. When you have a buyer's agent working on your behalf you have someone else negotiating the best deal for you as well as monitoring the progress of the construction. They can aid you in getting upgrades and price adjustments just to name a few.
There a lot of issues that arise along the way that often home buyers are not cognizant of that need to be resolved. It's definitely more hands on than resale properties.

Ultimately it's your decision as to whether or not you'd like to have representation but remember that this is one of your biggest investments and if you're opting to go it alone you should be very knowledgeable of all of the facets of the transaction.

Regards,
Lizete
Web Reference: http://www.LizeteSantos.com
0 votes Thank Flag Link Thu Feb 19, 2009
Without buyer’s agent you don’t have any representation! Buyer’s agency is the only way for you to have agent on your side and looking out for your best interest. Buyer’s agent will do the work and located the properties for you and they usually have access to more resources plus they will guide you trough the process. Negotiating is a hard and complex process and you do want to have a professional on your side. Buyer’s agency is agreement between you and the agent and in the case that you have problems with that agent it can be terminated as well, so don’t feel locked in and communicated with the agent. There is nothing wrong with interviewing few agents until you find one you feel comfortable with.

Hope this helps and best of luck!

Your North Carolina Broker
Sonja Babic
Web Reference: http://www.SonjaBabic.com
0 votes Thank Flag Link Thu Feb 19, 2009
Maybe nothing. It's sort of like insurance. If you don't need it you never know its there or how it benefits. But if you do, your glad you have it. Unlike insurance, a buyer's agent cost you nothing.
0 votes Thank Flag Link Thu Feb 19, 2009
The most important thing to understand is that you have no one watching out for your best interests. The onsite agents are legally obligated to let the seller know anything that would give the seller a negotiating advantage over you. In buyer's agency you have someone who is experianced in negotiation, knows important trends in the market and has access to past sales records that contain possible additional information than the county tax records. Agents are also familiar with offer to purchase contracts, often builders have specific contracts written to help to protect them. A buyer's agent could help identify certain items in the builder's offer to purchase contract that could possibly place you at a disadvantage legally and monetarily.

Even though you are new to home ownership there is something to be said for having someone take care of everything for you and to help guide you through the piles of paperwork that lead to a successful closing.

Best of luck and if you would like more information or to discuss this please feel free to contact me.
0 votes Thank Flag Link Thu Feb 19, 2009
A good Buyers' Agent will help you with details and timelines. Also, a good agent should have significant construction knowledge and be helpful in assessing homes with you, prior to you having your home inspection performed.

Many people find it supportive and comforting to know that there is someone on "their side" whose function as their fiduciary is not to look out primarily for the builder's interests, but for the Buyer..
Yes, you can get the deal closed, and bargain for things as you go. No doubt. But, it is unlikely that a tract builder will reduce pricing to you in the absence of a Buyers' Agent, so why not avail yourself of the help?
Web Reference: http://MikeJaquish.com
0 votes Thank Flag Link Thu Feb 19, 2009
BOTTOM LINE:

It does not matter number of home bought and sold, we have investors who across the country their profession use realtor. They know the pitfalls from new construction, pre-existing homes.

Our office answers so many emails and calls a week when a buyer "either new or seasoned" thought did not need a realtor it was then tooooooooo late have an attorney or real estate agent become invovled. Earnest money lost, potential of being sued.

Rule of thumb never purchase a home direct from : bank / bulider / listing agent / seller unless you have your own agent , and covered under their e & o insurance if something does go wrong.

Amazing when buyers state "I never ... "
....OR " GOSH if I only knew that"
... OR " I did not realize could have had this added at no expense"
Web Reference: http://www.lynn911.com
0 votes Thank Flag Link Thu Feb 19, 2009
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