Home Buying in 46278>Question Details

Dfpw, Home Buyer in 46278

I'm considering buying a spec home (not built yet), is there a benefit to hiring a buying agent? if if i'm comfortable go it alone?

Asked by Dfpw, 46278 Wed Nov 16, 2011

I have been considering buying a home for a long while now, It'll be my first home and i can go month to month at my apartment so time is my greatest asset. I have currently been just contacting the listing agents directly to view houses except in a few cases i've used the same agent to view homes that certain listing agents have been difficult to work with. My reason for doing this is that there "can" be financial benefits if you are comfortable with working with the same agent doing the listing. Looking at some developments in the area, I feel like I might be considering going the route of getting a spec home built with the options I want. Is there any kind of benefit of using a buying agent in these situations? I am not sure if the commision works differently in this kind of case or not, to provide a negative or benefit in handling a sale without one if you are capable of it.

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Please consultant with a buyer's agent! It doesn't cost you anything and the information can be priceless. There are many qualified agents to navigate you through the process and will keep your best interests in mind. When you develop a relationship with an agent, it will also save you time and money.
1 vote Thank Flag Link Thu Nov 17, 2011
Hi, In this case a Buyers agent will help you negotiate and navigate through the paperwork involved. Keep in mind the agent representing the listing is not representing your best interest, that's the difference.

Christopher Pagli
Licensed Associate Broker
Accredited Buyer Representative
GREEN Designated Agent
William Raveis Legends Realty Group
914.406.9023
1 vote Thank Flag Link Thu Nov 17, 2011
This is your biggest investment.I suggest you use a buyer's agent!!!! He/she will hellp you with all your questions ..The buyer’s agent is FREE.
0 votes Thank Flag Link Fri Dec 9, 2011
Couple of things......
First.... let me just say there is no simple answer. Re-sale vs New Construction..... with in new construction you have
0 votes Thank Flag Link Fri Nov 18, 2011
Have you already talked with the builder? If you have, then it is probably too late to have an agent represent you. However, one thing to note is that it wouldn't be costing you anything. The builder pays the commission, not you and it is already figured in to their marketing budget so it doesn't end up costing you anything.

The main benefit of having an agent represent you on this type of purchase is they would be representing YOUR best interest. The other agent is representing the builder's. Plus, they can give you ideas of what selections you should or shouldn't make for resale value since we know what does or doesn't sell when resold. Builders only focus on new construction.

I'd also like to point out that your theory of there being a financial benefit for you when working with the listing agent instead of having an agent represent you directly is somewhat flawed.... most brokerages are going to require the same amount of commission regardless of whether the buyers agent is the same or not. Even if they do allow a discount in commission, you most likely wouldn't be seeing it in your pocket the way you think you would. It is difficult to truly represent both sides as strongly as you can when you are representing one. I'm not saying it isn't done and can't be done, but it really is best if you have someone that can work with you along the way regardless of the home you purchase.

If you have an agent working with you and showing you multiple homes, they will get a better idea of what REALLY works for you too and be able to find you the best fit and deal for you and will truly be able to represent your best interests. If I have a buyer interested in one of my listings and they like it, I still know that to truly represent their best interests, we need to go out and look at some comparable homes to establish the value the home has to offer.

Good luck, and I REALLY hope you decide to work with one agent. I'd be more than happy to discuss how I work and the process as a whole if you want someone looking out for YOU. And I have several happy buyers I've worked with that could give you a reference and reason to have one agent too. :) Even some that we looked at multiple homes and ended up working through a spec home in the end.
0 votes Thank Flag Link Thu Nov 17, 2011
Dfpw:

Great questions. While every situation is different, most people are not experienced or knowledgable enough to negotiate their own real estate deal. That may or not be your situation, but my guess is that you'd be well served to utilize the services of a Real Estate Agent...especially given that this is your first real estate purchase.

I recommend that you consider hiring someone you trust, whether you're buying an existing home or considering building something new. That person then becomes your advocate for the remainder of the process. Their duties include being obedient to you, keeping your personal information - including your motivation and budget - confidential, and being loyal to you and your needs.

Here's a podcast I did a while back that might help you understand my perspective.

http://www.macduffrealty.com/blog/2009/10/26/thinking-of-bui…

Good luck in your search!

Joe Shoemaker
Principal Broker, REALTOR®
MacDuff Realty Group, LLC
317 413.8501
joe@joeshoe.com
http://www.facebook.com/joeshoe
http://twitter.com/#!/jojosmojo
0 votes Thank Flag Link Thu Nov 17, 2011
I suggest you use a buyer's agent. All "production" builders build commission into their pricing structure. I have represented many buyers in dealing with builders and there are two main pitfalls: (1) Selection of options without regard to resale, and (2) Affiliated services. It's important while selecting features and options that you do not deviate too far from what will appeal to most buyers - and buyers agent know what most buyers are looking for. Most builders have affiliated lenders, title companies, insurance companies, etc. and the salesperson will blind the average buyer with "smoke and mirrors" making them believe what a good financing deal they're getting; in most cases, you are better off "shopping around". I can help. Peter Knight, peter.knight@remax.net, (317) 529-4178.
0 votes Thank Flag Link Thu Nov 17, 2011
First off the commission IS NOT BUILT INTO EVERY DEAL! If the home is listed and built it is “built in” but new build jobs are not and can be bid by the builder either way. One of the best ways for consumers to get a better deal is to spend some time interviewing builders and asking questions of the builders current customers, choosing a builder is just as important as choosing a good FULL TIME agent with experience in new construction. Ask the builder if they offer options such as cost plus contracts or if they can recommend some banks which do construction to perm loans. Do your homework and don’t rush in to any situation, always sleep on it for a night or two. In regard to hiring a buyer’s agent in most cases I would recommend this course of action, as a good FULL TIME agent which is familiar with new construction can help too guide you through the process, explain construction methods, draws and change orders. Always make sure the agent will attend EVERY meeting, when we do new construction build jobs (semi-custom) we meet with the client and their agent 10-15 times during the process. Agents can be very lazy and not attend meetings so be clear you demand they be present at all meetings. As a builder, if a client who is represented shows up at a meeting without their agent the meeting is canceled. You can greatly benefit from hiring a good full time agent, but I have worked with some agents who get you to sign, walk away and say “show me the money” so take your time choose both your builder and your agent wisely.
Web Reference: http://www.randshomes.com
0 votes Thank Flag Link Thu Nov 17, 2011
Michael Weaver has a great answer. As you may or may not know, the choices you make on a new home will impact you for many years to come. You need to look at the whole picture as far as upgrading and the current market conditions of the community. A agent can defintley be a new set of eyes to help navigate this whole process. But honestly 1,000’s of people a year buy a new home without the help of a Realtor. My advice is do not overextend yourself on a monthly payment. You should consider some future goals such as college funds, retirement.

I have to blog post you might want to go read. The first one was posted today it shows a return on investment in buying a home and the top 4 reasons to buy a home.

You might have to cut and paste the link: http://indybpteam.info/

I also have a short video that talks about effective interest rates and how a Realtor can get you an effective rate of under 3%. Good luck on your decision and have a Happy Thanksgiving.
0 votes Thank Flag Link Thu Nov 17, 2011
Most people who want to buy direct from a builder really just want to save on the commission. They don't. The commission is built into every deal. Buying a home without an experienced and knowledgeable Realtor for representation is sort of like doing your own surgery or fixing your own teeth ... looks pretty easy and you can save money ... but, then there is the result. You have no one to assist you with the facts like where in a subdivision should you build to obtain your best potential resale benefit, what options you really need and what you don't, facts regarding value of upgrades or downgrades offset by price reductions. Your decision can actually cost you money in the long run. There are many benefits to working with a Realtor and none trying to represent yourself with a builder. Visit http://www.NewHomesCashRebates.com for more information.
0 votes Thank Flag Link Thu Nov 17, 2011
You become a paper pusher when you are in dual agency, what you call it when one agent is listing and selling agent.

We are not nearly as effective in representing you or the seller's needs when we are acting in this capacity.

Your benefits are far outweighed by the benefits of having your own agent.

As far as using an agent to help you buy a home that is a spec, or new build....

I would still recommend using a Realtor only because there are no additional costs to you. Your agent should actually come up with ways to protect your interests and possibly point you in directions that could save you money.

Hope this helps! Best of luck to you in buying something!
Web Reference: http://TheVearusGroup.com
0 votes Thank Flag Link Thu Nov 17, 2011
It's best to select a buyers agent to work with. It will not cost you anything to work with one agent that you trust. In fact it may cost you money to not work with an agent. When you work with a list agent you end up in a situation called
0 votes Thank Flag Link Thu Nov 17, 2011
FIRST ANSWER
You need a real estate agent to go with you to view model homes and register that agent with the builder so that the agent can help you. You need representation. You need someone that is working for you. The people that are working at the model homes are selling homes for the present. You need to have amenities in your new home that will help it sell in the future. An agent that works in selling existing homes can give you the best advice. It does not cost you any money to have an agent represent you. The home builders always has a commission already build in to the price of the homes that they build. The builder pays the commission you do not pay it.
As far as looking at existing homes, you should use one agent. There is not any monetary advantage to you to use the listing agents only. The listing agent has a contract signed by the seller that already states what commission will be paid upon the sale of the home.
I would be glad to help you for both with new or existing homes. My name is Donna Massey-Trinkle 317-443-8110
0 votes Thank Flag Link Wed Nov 16, 2011
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