Home Buying in Gainesville>Question Details

Michael, Home Buyer in 20111

Looking for a Realtor willing to take a 2% commission on a new construction and give 1% back after closing.

Asked by Michael, 20111 Mon Apr 28, 2008

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16
I guess I'll answer your question directly. If you need an agent willing to to take a 2% commission on a new construction and give 1% back after closing..I will GLADLY work with you. email us at questions@realestateradiousa.com.

Can't believe some of the answers below. Whatever you need ..please let me know and we'll see what we can do to help you.
2 votes Thank Flag Link Tue Apr 29, 2008
Michael,

The lack of responses to your question should tell you a great deal, but I’ll try to bring it down to laymen’s terms.

Imagine your boss coming to you and asking you to work a full 40 hour week, plus another 10 hour’s overtime. But after he pays you and you receive your check, he wants you to give the overtime payment back to him.

If you did agree to that, might you be inclined not to work as hard or diligent?

If you do find such a hungry and desperate agent, look at the bigger picture - not just the monetary aspect.

Frank Biganski, Realtor ABR
2 votes Thank Flag Link Tue Apr 29, 2008
If you're so concerned about getting more in closing costs, a good buyer agent can help you negotiate those terms with the builder. Why not get 3% of your sales price in closing costs? Why not exercise your right to select your own lender AND still take advantage of any builder incentives? Why not use a Realtor and have that person negotiate on your behalf? I'm glad to hear that you have hired an agent, just never ceases to amaze me at how many people don't blink twice about spending hundreds of thousands of dollars, but want to squeeze out the pennies from agents who can fully represent them in the transaction when the fee is paid by the builder. I recently represented a repeat client in a new home contract, had the builder specifically write up two separate addendums for my client's benefit. Your agent should shed some light on what those two special addendums are.
Web Reference: http://www.MovingToNova.com
1 vote Thank Flag Link Tue Apr 29, 2008
Hey Guys,

Sorry I didn't answers sooner I’ve been busy at work. To clear a few questions I was talking about buyer representation. I actually have a realtor that I’ve been working with and she told me her broker would not allow that type of transaction, not that she wouldn't do it. I've decide after reading many comments to reward her service to me and my fiancé. But I’m really surprised at how many people responded to the question on both sides of the issue.
1 vote Thank Flag Link Tue Apr 29, 2008
Btw...it's completely legal and ethical for a broker/agent to give back money at closing if it's approved by the lender and not a condition of you getting financing.

And the way I see it, driving around and searching for properties for a buyer constitutes about 1/3 of the time, energy and money involved in working with a buyer. So it you cut that part out and need a Realtor to help you and guide you from offer preparation through closing, then it's fair to me to only charge 2 percent and give you back the difference.
Web Reference: http://www.LoudounStats.com
1 vote Thank Flag Link Tue Apr 29, 2008
If rebates are legal in your area, and you've located the house that you want, I'm surprised that you have no "takers". As a former new home sales rep, most of the agents appeared at the contract, but left the day-to-day management of customers to the on-site person. What you're offering is not unreasonable, assuming that the question refers to a purchase that you are planning on making. I'm surprised.
Web Reference: http://optionsrealty.com
1 vote Thank Flag Link Tue Apr 29, 2008
So do you know how a Realtor can protect you in negotations on a new home? Are you sure that the new home builder is giving you the best price for the property you are considering? Do you know if you are getting the best deal the builder has to offer? The cost of your representation is built into the builders pricing. The cost to you not to have full representation could be far more than the 1% rebate you are asking for.
Web Reference: http://cindyjoneshomes.com
1 vote Thank Flag Link Tue Apr 29, 2008
Frank,

I have to admit i am somewhat surprise not get any offers, for the simple fact that a buyer can pretty much go through the process alone. No disrespect to any of the realtor's out there but it would just seem like easy money to me. You have an inspection of a brand new houses and paperwork . No finding comps, no wasting gas and valuable time driving around town, a pretty straightforward process. You know it's everything the buyer loves because they built it themselves.
1 vote Thank Flag Link Tue Apr 29, 2008
Michael, It amazes me how so many realtors don't seem to understand your simple question. When I read it, I wondered "Why do you think you NEED representation?", but then it's best to have someone help you go through the contract with the builder if you are unsure. Any realtor worth their weight would easily accomplish what is in your best interest and make certain that the builder didn't try to do anything like leave out sinks, toilets and tub. Some scrupulous builders do actually do things like that; they consider such things extras.It should not be ASSUMED simple fixtures will be included in new construction. The one realtor who responded something about taking food out of their mouth must be an idiot and I wouldn't want someone who can't even understand the question represent me in any matter.
0 votes Thank Flag Link Wed Nov 4, 2009
Michael - Glad to hear that you're being loyal to the agent you've been working with. Should anything change, I'd be glad to help you out as I mentioned previously.
Web Reference: http://www.LoudounStats.com
0 votes Thank Flag Link Tue Apr 29, 2008
If we were to roll over and take more than 60% less for the work we do, taking food off our table, how hard do you think we would work to help you keep as much money as possible in your real estate transaction? Isn't that one reason you hire Realtors? Wouldn't you want someone on your side that is willing and experienced at helping you realize the most from your deal, or do you want someone that walks away with their tail between their legs?

In most cases, you get what your pay for and it is the cheapest person that winds up spending (or losing) the most money.
0 votes Thank Flag Link Tue Apr 29, 2008
Hi Michael,

I realize you have a valid point of view in your reply, but it's rarely that simple.

When I first got into this business, I remember my educator telling me the two words I would hear and say the most: “It Depends.” He was so right, and I always have a little private chuckle whenever a buyer or seller asks a blanket question like yours.

Although a buyer can pretty much go it alone when buying a property, so can anyone else in any other circumstance. A person on trial in a court of law can go it alone, and choose not to hire an attorney. A person earning a 6 figure income can choose to do their own taxes and not use a Certified Professional Accountant. The outcome of each of those scenarios can vary greatly, just as the buying and selling of a property can vary.

Just because the property is new construction doesn’t mean it’s infallible to defects, encumbrances, or latent issues. The house could have been built on land where a previous unknown partial owner will appear out of the woodwork and lay claim to the property. Perhaps this owner lived in England for the past 18 years and was never notified about the sale. Or perhaps the title agency might uncover a mechanics lien on the property from a contractor who graded the land but was never paid. Now we have to negotiate through that aspect – time consuming, and perhaps an attorney may need to become involved.

Yes, we agents occasionally become involved in a purchase or sale that goes so smoothly, we start to get nervous because we’re waiting for the other shoe to drop. But when 99% of our deals are very time consuming and incredibly challenging, when a clean deal comes along, that is our little bonus.

If I did take on your offer, I would just take the 1% and forgo refunding 1% to you because I would have to pay taxes on the full 2%. And I might not get to deduct that 1% refund on my taxes because basically, IT DEPENDS.

Contact a buyer’s agent near you by visiting http://www.rebac.net. There’s typically no charge to speak to an agent in your area, and perhaps they can provide you with some professional insight as to why the delay. Who knows, you may also find the agent you’re looking for too!

Take care.

Frank
0 votes Thank Flag Link Tue Apr 29, 2008
Would you really want such a Realtor? When the demand for housing was high and the supply was low, home prices were going up rapidly. At that time, all you needed was sign on the lawn and buyers would come to you. Now demand for housing is low and supply is high, so a good Realtor is in great demand.

Most good Realtors I know are not fighting to get more listings -- they want to get more buyers. In today's market agents have to spend more in advertising, marketing and networking to get the few buyers with the money and courage to buy.

An agent who is willing to take a 2% commission; share it with a selling agent; and give back 1% would actually lose money. You would need to find a real dumb agent to accept such a deal and I would not want him or her representing me.

You may do better using a listing service, advertising and handling the sale yourself and offering 3% to cooperating brokers, so they will bring you their buyers. I don't know about your area, but in South Florida the majority of sales result from agent network.
0 votes Thank Flag Link Tue Apr 29, 2008
If you've already located the community and are ready to make an offer to a builder, I have no problem doing that. Approximately 30 percent of my buyer business is new construction so I'm well versed in builder contracts, the way they operate and negotiation tactics.

Contact me if you'd like to chat further. And yes, I can put it in writing so that we're all on the same page and can hold the other accountable.
Web Reference: http://www.LoudounStats.com
0 votes Thank Flag Link Tue Apr 29, 2008
Michael,

Is the 2% commission you are referring to for the selling of a home or to assist you with the purchase?

There are many savvy homebuyers out there who know the market and what they want. You sound like one of them, however, have you negotiated a sale in this market? What happens to you when a problem arises? The sales agent works for the builder. The contracts are written to protect the builder. Make sure you read the fine print before signing. Once you have walked into a builder's office unrepresented by a Realtor and start discussions about the building process, the builder will not pay a Realtor you bring in after the fact.

I live in Bristow and my Long & Foster office is in Gainesville. I would be happy to sit down and discuss your question in great detail.

Julie Holtkamp, Realtor
Long & Foster, Gainesville
703-786-6789
0 votes Thank Flag Link Tue Apr 29, 2008
Michael:

I am not sure what you are asking for. Do you want a Buyer's agent? Someone who will work on your behalf: inspecting the property and the options and make sure you get the most value and make the best choices for resale? preparing the paperwork, negotiating the terms of the offer? overseeing inspections? moving the process from contract to closing, keeping an eye on the other side and advocating on your behalf when issues arise? coordinating your lender and insurance agent and making recommendations to top notch professionals? reminding you to order your utilities on and dealing with problems with the utility companies who don't have your address on the grid? reviewing your final documents, accompany you to closing , and THEN do something questionably unethical and probably illegal in VA (loan fraud) by giving you money back at closing?

Why I. too, am suprised!

If you are talking about listing your new construction, then I would understand why no takers- I would spend one percent in the first two weeks on marketing. For the pleasure of saying I had a new lisitng, its not worth the negative income.

You might try a google search. I hear there are online brokers who will in fact, take a commission, provide you with a contracut and act as a processing agent for you- all for about 1%. You really don't need an agent's help on new construction, after all, do you?

I am not tryng to be mean- just rying to let you know that our job is not about driving people around looking at house. Good luck - I hope you do well.

Pat
0 votes Thank Flag Link Tue Apr 29, 2008
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