Home Buying in 29229>Question Details

cola2009, Home Buyer in 29229

We're thinking of signing a contract on a new build. We haven't signed with a realtor yet. We've been holding

Asked by cola2009, 29229 Wed Feb 18, 2009

back b/c we were thinking we would be able to negotiate better with the builder (e.g., extra incentives, reduced pricing) if they didn't have to pay realtor's commission. Is this true? Or, would a realtor help with this. We've had people tell us that you can't negotiate with builder a lot. But, others have said that they you can negotiate the price of the home down. Thoughts?

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16
It can be true in the sense builders prefer an unrepresented buyer. They can even give you would be buyer's agent comission in incentives or w/e. Of course, you also aren't likely to negotiate (you are getting 3%, so it kind of feels like you already gotten a great deal) which likely saves builders more than 3% which is why they are doing it in the first place.
0 votes Thank Flag Link Tue Mar 10, 2009
If you even email one so-called Buyer's agent about anyhting they will make the price you pay 3 when they demand a payout down the road.
0 votes Thank Flag Link Tue Mar 10, 2009
One other thought would be this. You're thinking you can save the commission on your purchase, great. The builder will be thinking they'll save the commission also. The best you can hope for is to split the savings in that case. Chances are the builder has negotiated more sales than you have. I'm not saying you can't possibly negotiate successfully but you need to make sure you've got a rock solid grasp of all the issues you need to cover. Try consulting with a few buyers agents & discuss what issues will need to be covered, ask them to prove to you why you need their professional assistance, then you can make an informed decision if you feel comfortable proceeding by yourself.
0 votes Thank Flag Link Tue Mar 10, 2009
No need to waste 3% for this. You can haggle all you want with them. Best part is you are going to save 3% no matter what.
0 votes Thank Flag Link Tue Mar 10, 2009
Potential Home Buyer - depending on with whom you are dealing with, I can guess that you have spoken with the realtor that represents the builder. If that is the case, that realtor works for the builder and not you, and regardless, the builder will pay a 6% commission once the home is sold. Hiring a Realtor to protect your interest would be prudent! Price negotiations and incentives etc.. can still be achieved with the help of your realtor.

For your sake, contact a realtor!

Howard Rose III
Army(Retired) Realtor
Russell & Jeffcoat Realtors Inc.
803-800-4448
803-699-2212
http://www.buyandsaleinthemidlands.coom
0 votes Thank Flag Link Sat Feb 21, 2009
No Realtor needed. 3% free money for you. Just talk the Builder about it. It should not be a big deal. It will cost you tons of money to have one if these "Pro"'s around trying to make you buy something you are not sure about.
0 votes Thank Flag Link Sat Feb 21, 2009
No reason ever to have a so called "Real Estate Pro" - would you give anyone 6% of your equity....

You can get a good deal on this house, but even better if you rent a similar one.
0 votes Thank Flag Link Fri Feb 20, 2009
In response to Tommy below... the protection you get when you are represented by a Realtor can save you thousands of dollars and help you avoid mistakes and bad decisions you may regret later. (You can go to court without an attorney and save some money too, but I wouldn't advise doing that either)
Commission is paid as directed by the listing agreement between the builder and sales agent. Your negotiations aren't going to change that. If you select a custom builder for a custom job, that is the exception. That builder is working for you, and no commission is involved.


In response to the idea that builders don't negotiate... If the market is hot, and buyers are willing to pay full price, then no, the builder has no incentive to negotiate because another buyer will come along. They also try to protect the value in a subdivision. When a builder lowers prices, it affects the appraised value of all the other homes in a subdivision. In a tough market, builders are less willing to sit on inventory and will do what they need to in order to get homes sold.

Sit down with a Realtor and discuss the advantages. That won't cost you anything!
0 votes Thank Flag Link Thu Feb 19, 2009
Sc,

I really think that it is always better to have representation. Yes, you can negotiate the price with builders, I don't know what 'people' are out there saying that you can't but you can - I've done it. A buyer agent may be able to find out if the recent pending sales in the development have dropped in price - making it necessary for you to negotiate down your price. That being said, you may have an issue of whether or not the builder is going to pay an agent commission at all. If you've already been to the site/builder and talked with them, signed in - whatever, the builder may not be willing to pay an agent for 'bringing the buyer' if the agent didn't do so. Is the builder offering commission at all? Some don't. Being represented by an agent and the agent getting paid a commission are two different issues. I bought a lot a few years back in NC and hired a Realtor because I wanted to make sure that the right questions were asked. You may be able to bring an agent into the scene now, have them negotiate for you and the agent get paid through the transaction. Don't sign anything with anyone until you are sure of what you want to do, how you are going to do it and how everyone is going to get paid. I had a friend once who went to a site on his own and signed a purchase agreement on a lot THEN called me to ask me to go back with him and make sure everything was ok. I explained to him that he would now have to pay my commission since the builder won't. He didn't want to do that and got tied into a property for 6 months with no construction starting. When it finally did start, the builder told him that the price would be higher since the lot he selected would now need a different home built on it. Months later he finally got out of the contract and then he and I found him a home. I know that's a typically scary Realtor story, but stuff like that happens.
0 votes Thank Flag Link Thu Feb 19, 2009
You can negotiate yourself. It will save you 3%. Just ask to have the buyer commission taken off the price. Every single one of the people below are incorrect.
0 votes Thank Flag Link Thu Feb 19, 2009
It is definitely in your best interest to get the representation of a REALTOR. It will cost you nothing and provide you with a fiduciary single Agency. I would also recommend that you have an independent Home Inspection done on the Home prior to closing. Best of Luck and please let me know if I can be of service.
0 votes Thank Flag Link Thu Feb 19, 2009
First of all, you can negotiate a better price with the use of a REALTOR. Builders do not normally consider commissions in negotiations, regardless if the buyer is represented or not. The real point is having a REALTOR who is going to be with you throughout the entire building process. The on-site agent represents the builder and is only obligated to look out for the best interest of the builder. I would recommend having a REALTOR to look out for your best interest. I was a successful on-site sales agent for 3 years and I am very familiar with the entire new home process, from negotiating the contract to beyond the closing. I would be glad to sit down with you, with no obligation, and discuss your expectations and goals and also give you an opportunity to get comfortable with me and my services. Would that be okay with you? If so, please contact me.
0 votes Thank Flag Link Wed Feb 18, 2009
As with any listing, the total commission will still be paid. If a buyer is without representation, the full commission will be paid to the brokerage of the on-site (builders/seller) agent. The brokerage will require full commission since their agent is representing both parties in the transaction. I believe it is always in the best interest of a buyer to have their own representation even with new construction. It's great to have someone working exclusively for you to help with negotiations, contract verbiage and ensure that everything from contract to close is being handled as planned. New construction is wonderful, but there can still be hiccups along the way and having your own agent will definitely reduce the stress on the buyers. Please e-mail me directly if you would like to chat about this in more detail.
0 votes Thank Flag Link Wed Feb 18, 2009
It is only in your best interest to have representation when purchasing a home, whether new construction or not. The builder will be paying the same commission even if you are not represented. Why not do yourself a favor and get a professional REALTOR to work for you and in your best interest? There are so many things that could get overlooked or go wrong without an agent. The builder will get his bottom line price one way or another, with or without a buyer's agent.
Also, who is telling you that you can negotiate the price? Consider your sources.
I purchased my first home without representation-big mistake.
Web Reference: http://www.kellyacahill.com
0 votes Thank Flag Link Wed Feb 18, 2009
No it is not true that you will get a better deal without an agent!! In fact, you may not be taking advantage of all of your options that a buyer's agent can advise you of.
In this market, you may be able to negotiate the price, and or negotiate upgrades. This depends on the neighborhood and how motivated the builder is to sell. Your agent can help you figure this out. Find an agent ASAP! When you "register" with the builder, they will want to know if you are working with your own agent. Find someone who has experience dealing/negotiating with new construction.
This is a great time to be a buyer!
Web Reference: http://www.pagelatham.com
0 votes Thank Flag Link Wed Feb 18, 2009
The same percent will be paid with or without a realtor...without one you won't be represented...Contact me if you have questions.
Laura Sargent
Carolina One Real Estate
lsargent@carolinaone.com
Web Reference: http://www.laurasargent.com
0 votes Thank Flag Link Wed Feb 18, 2009
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