Does Lennar negotiate, and if so, how much can I expect to save (percentage wise)?

Asked by Frances, Houston, TX Wed Mar 19, 2008

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Allen Hebert’s answer
Allen Hebert, Agent, Spring, TX
Thu Mar 20, 2008
You should be represented by a buyers agent through a wrtten buyers representation agreement. This will allow the agent to place the interest of you first. The builder or builders sales rep does not represent you and is not bound by law to full disclosure. Most builder sales reps do not have a real estate license and are not bound by regulatory law. You will not save any money by going to the builder directly, in fact that strategy could very well cost you money in the short an long term. Do yourself a favor get a Realtor to work for you.
2 votes
If you feel the need for a buyer's agent, by all means get one but NEVER sign a buyers agreement. All you do is get locked in and a written buyer's agreement doesn't mean your interests are put ahead of anyone else's. All real estate agents (yes Realtors too) benefit by you paying the highest price possible, not the lowest. When was the last time you heard a real estate agent telling someone to lower their offer price?

For a new home built and sitting, you can easily ask the builder for upgrades and lots of them.

Save money with a Realtor? How believes that the builder is giving the buyer agent a commission for free? That commission reduces their net on the sale after all is said and done. Take that 3% and get upgrades or other concessions instead. When you show up with that buyer agent the builder knows 3% less goes into their pockets from that sale.
Flag Mon Dec 3, 2012
Pam Winterba…, Agent, Danville, VA
Wed Mar 19, 2008
Frances....

Many home builders are negotiating as they are sitting on properties that are built and no takes. Lennar is one of them. They will easily give you upgrades before they will reduce the price. They also pay a commission if you are represented by a broker. If you are not being represented that mean there is more fluff. They have made HOA payments for a year, buydowns on loans and upgrades up the wazoo. Price is the last place they will negotiate. Without getting a TD here I would highly recommend you are represented. Good luck.
3 votes
Betina Forem…, Agent, Austin, TX
Wed Nov 3, 2010
Dear Frances,
You have gotten some good advice. Here is my .02 cents.
1. Have a Buyers Agent help you with the deal. You will be glad you did as they can help you negoitate the contract and help explain the contract to you. The sales rep at the builders, gasp works for the builder. So his job is to get you to pay the most he can.
2. Have a Home Inspections performed by an inspector of your choosing. It will cost a couple hundred dollars, but even builders make mistakes. Better to know before you close than finding out after and trying to get them to come back and fix a problem.
3. If you don't plan on living there for several (read 5 years or more) think twice about buying in the new community. If you need to sell your home in a hurry you will be competing with the builder for buyers. Buyers typically prefer a brand new home to one that is a few years old. This is a tried and true fact. Better to buy the last house in a new community than the first home.

I wish you the best of luck and if you want a referral to a local Kingwood agent just let me know. I am happy to help!

Betina
1 vote
Jeff Kessler, Agent, Austin, TX
Wed Mar 19, 2008
Depends if the home is on the ground or if the home needs to be built. They probably will negotiate more on a home that is done vs. one they have not built yet. Let me know if you need any help.
J.
1 vote
Anna Maria D…, Mortgage Broker Or Lender, Houston, TX
Tue Nov 27, 2012
Hi Frances,
I work with a small custom builder who will negotiate. You will get the house you want built to your specifications. The big builders charge what they charge because they can. If you are interested in seeing his work, let me know and I'll give you his information.

Anna Maria Durr 281 592 0667
0 votes
Eileen Heape, Agent, Kingwood, TX
Wed Nov 3, 2010
Always! This time of year is the builder close out and a great time to buy a Lennar.
Eileen Heape
281 610-9008
0 votes
Gunjan Seth, , Houston, TX
Mon Feb 22, 2010
You can get 2% cash back, if you use our services.

Go to http://www.GetBackTwo.com for more details or call me at 832-704-7731
Web Reference:  http://getbacktwo.com
0 votes
Anthony19721, , Austin, TX
Mon Feb 22, 2010
Do it without an Agent! You can save 3% or $11K on a $375K home. When you go it alone, you make them want to work with you more. With another Agent involved you have to pay them $11k for nothing. Just skimming your transaction. All agents (buyer or seller) incentive is for a higher price for more commission. None will work with you to get a lower price. That is common sense... I never found a agent that tried to get a lower price for me..

If you know English and can read, just read everything over and don't be a push over. Most agents don't even have a college degree so if they can guide you then you can guide yourself.. Just ask questions if you dont understand something..

I just negotiated with Lennar on a $245K house and got it down to $215K.. and did it all myself... No agent would do that for me.. no one will look out for yourself better then yourself..
0 votes
Irishru2, Home Buyer, Cary, NC
Mon Jul 13, 2009
To all of the realtors who state how necessary their involvement is:
Can you walk through how you are incentived to save me money? Use my example scenario here:

If Lennar is asking $375,000...Say I go it alone without a realtor, and let's say I get them down to $370,000.

Where is the relator's incentive to get me a lower price?
What does the realtor make if I do use a realtor and I pay $370,000?
What does the realtor make if he/she can get my price down to $350,000?

Thanks in advance for the explanations, realtors.
0 votes
A Realtor makes 2.5% - 3% on a new home deal. If you go it alone and do not use a Realtor, you will never get this money, for to many reasons for me to explain. Lets use 3% as an example. Home sale $375,000 = $11,250 . Home sale $350,000 = $10,500. Do you really think that any Realtor is going to worry about the difference of $750 vs the chance at getting referrals and making a client happy. Also don't forget that a Realtor also has to give up money to the brokerage that they work for, so the $750 actually becomes less that a Realtor would be losing. I want you to know that many times in the past, I have given up all of my commission at the closing table to be sure that my clients got the house they so desperately wanted. Clients are way more important to me than money. I can assure you that most Realtors feel this way. Of course we need to make money, just like everyone else, but there is no way we would ever sacrifice the happiness of a client over a few extra dollars.
Flag Tue Nov 26, 2013
Stephen Fritz, Agent, Bunker Hill Village, TX
Wed Mar 19, 2008
Ditto to Lynn's asnswer. Builders in Houston and surrounding areas prefer buyers to be represented in a transaction. They do everything they can to keep us informed of their specials weekly and make sure we are familiar with their product and specials. Lennar is a reputable builder and the sales people enjoy working with builders. You simply won't get a better deal without a realtor. What do you have to lose getting a professional realtor to beat up the builder and get them down even further? As far as a percent amount there is not a set amount. Every builder prices in different ways. Some seem to reduce more then others because they inflate the price to start with. Please let me know if I can help.....
0 votes
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