This is a liability situation for them. Because of this, most builders welcome representation. Please feel free to contact me anytime as I have a great deal of experience working with builders.
There is no rule of thumb on how much to ask off a list price. As agents, we base our offers on comparable sales. So, you'll need that information in order to base an offer. Many times builders will not even negotiate on their asking price, or they will give you an "extra" included in the price. A local agent should know what the builder does generally when selling their properties.
I have never seen a builder giving clients a discount/upgrades because there is no buyers agent involved. The fee for a buyer's agent, which is paid by the builder, is taken out of marketing. Having an agent representing you helps in negotiating the price, the upgrades, and many more such as advice on the area, the home etc.
Depending upon the builder, you may still be able to have buyers representation. The sooner you disclose this to the builder the better it is for you. I highly recommend that you have an agent working on your behalf. The sales agent in the builders office is looking out after the builder and not you.
I hope that helps, let me know if you have any further questions.
Best of luck,
Susie Kay, RealtorÂ®
GRI, CHMS, SFR
United Real Estate
Servicing your real estate need is my priority!
The commission comes out of a different fund....marketing budget....it's not like now they aren't paying a commission so you can take that amount off of upgrades. Most upgrades are marked high in my opinion so you should be able to negotiate some in some cases. Some builders will, some won't, some may also include a pre negotiated amount in the contract.
Good day to you.
RULE # 1: YOU CAN ALWAYS NEGOTIATE.
There is an opportunity for a world of savings with the Builder in the purchase process regardless of whether you choose to utilize the services of a Realtor, IF you know how to structure your offer properly and where to seek those savings. Make sure you identify all that is important to you as soon as possible so as not to loose value by forgetting something. Make a list of all changes/options. Establish your perceived value of those options or changes and structure your offer accordingly. Don't be afraid to go in low. You can always come up in terms of agreed to price. The other key is to know what options the Builders are willing to negotiate on and those they are not. Its not as simple as it sounds but it is not that complicated either. It just takes some patience and due diligence.
Rule # 2: Know the value of someone with expertise who can SAVE you money.
You are right that most Builders have their Realtor Cooperation Policies. That said they also know they do not want to lose a sale opportunity. Most Builders will still allow you to utilize the services of a Realtor if you really want one and let them know that right up front.
Please feel free to visit our web site at http://www.CornerstoneNewHomeSolutions.com where you can gain access to a lot of knowledge regarding the purchase and or building of a new home without obligation. We specialize in new home construction and first time buyers. If we can be of any service or help please feel free to contact us.
Best wishes in your New Home Dream and Endeavor,
Stephen B. McClain, Broker Owner
Cornerstone New Home Solutions
I have had clients do just that
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If not, merely bringing an agent to the next meeting is all you need to do.
Yes, an agent can often negotiate a better deal than you can on your own.
However, if you have signed a contract, you are at the mercy of the builder's policies for sale. You can ask, and always should but, the builder has little leverage to agree.
Many times in new construction, you can get an intermediary status that requires the listing broker to assign an agent to represent the buyer and another to the seller. This way you can have private conversations too all and get the representation you deserve.
Now, to your question at hand. Can you negotiate builder incentives vs. them paying a fee to a buyers agent. My experience (and you're likely to hear this echoed) by others is builders have a budgeted program as to what they're offering. Most projects in Austin have plenty of buyers interested and as such, if a buyer agent is not written in a transaction, they becomes extra profit for the builder. Caveat, that this is highly specific to the builder.
Please feel free to call me at 512-522-8470 if you'd like to discuss. Kevin
In my experience, the builder's position on not paying buyer agent commission can be negotiated if you're willing to tell them that there's no deal if what they are telling you is that they are not permitting you to get the representation you are entitled to. This is akin to denying you a right to representation. If positioned correctly, you can get this overturned.
Note, they will tell you that if you don't have a buyer's agent, they might be willing to just credit you that fee, but you're still not getting the representation you need to evaluate the deal and determine if it is fair and at market rate.
Please be careful, first time buyers of new homes are the ones most in need of representation. I've dealt with many people over the last few years that were in your situation and had to sell their home within a few years of buying it (new), and they get taken advantage of all the time.
If you don't already have someone to represent your best interests, please call and I'll more than earn the commission I'm paid to represent you.
Representing People, Not Properties
Broker | Partner | Keller Williams
GRI, CRS, ABR, CLHMS, e-Pro