Who is on my side? I think that i messed up. I told my realtor how much i was approved for, now i get the

Asked by Envi, Dallas, TX Fri Apr 25, 2008

feeling that she doesn't want to make the best deal for me in respect for a bigger commission? A new house was list at 200k and i ask if we could get it at 180. She said that since it was brand new built house, the builder/seller doesn't negotiate.

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Susan Myszko…, , Baltimore, MD
Fri Apr 25, 2008
Envi, I agree that in most cases Builders do not negotiate their price at all and it doesn't matter whether you have an agent representing you or not. They usually add upgrades to the base home in order to keep the actual price of the home the same. However, if you can get a deal like that, I also agree that you are getting much more of a home than you would typically get at a base price. You may want to compare it to what you would end up if they were not adding any extras. For instance, compare the builder grade carpeting to the upgrade, compare the builder grade cabinets with the upgrade, etc. However, with that said if the price of the home is more than what you feel comfortable with, it is time to move on to homes that may be more in keeping with your budget goal. Also, remember that buying new may also cost more in closing as usually the builder does not split the transfer fees and with a home that is a re-sale, those fees are typically split at least here in Maryland that is the case. Hope this helps.
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Vassi Saviano, Agent, Elk Grove Village, IL
Fri Apr 25, 2008
Envi, I strongly dought that your agent is thinking about a higher commission for his/her self. An increase in sales price of 20K will pay the agent a few hundered dollars and by the time the agent shares the commission with the broker it is even less than that. You need to communicate with your agent about your concerns and your needs. Increasing your price 20K may possibly purchase you more home if the builder adds in upgrades as the previous posts suggest. However, purchasing at your limit will increase your monthly payment. If you are uncomfortable with that you need to communicate that to your agent. You need to find out why your agent is encouraging you to purchase at your limit.
Web Reference:  http://www.VassiSaviano.com
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Zack, , Westchester County, NY
Fri Apr 25, 2008
Envi, you need to have a serious talk with your realtor about your expectations. If you feel you cannot trust him/her, then get a new realtor. I had a similar problem when we bid for a house, our realtor got a copy of our preapproval letter which had our financials, and all of the sudden, all the new listings we got from her were much higher asking prices than we had specified. After replying kindly that we considered these houses out of our price range a couple of times, we had a talk about how much we had planned to budget for housing and we wouldn't even look at a place who's asking price -10% + taxes were over our budget, even by a dime. Since then we've been happier with the service but if you feel you can't trust your realtor, get a new one. There are plenty out there.
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Don Tepper, Agent, Burke, VA
Fri Apr 25, 2008
If it's YOUR Realtor, you haven't done anything wrong. And, at least historically, new home builders have been very, very reluctant to negotiate on price. (Yes, many now do, but not all.) Instead, what they've often done is kept the price where it is (say $200,000), but have thrown in a lot of extras and amenities (fireplace, finished basement, various upgrades) so that the $200,000 is now buying a lot more house. Maybe your Realtor has the mindset of a few years ago...or maybe your Realtor has worked with that builder recently and is speaking from experience.

In any case, you can make any offer you want. Your agent may consider it a waste of time, but you call the shots. So, talk with her--find out why she's saying what she is--and then proceed accordingly.

Good luck.
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Kathleen M.A…, , Jump River, WI
Fri Apr 25, 2008
This can only be answered by this question: Was you working with an agent representing you or the seller? If yoou have a buyer agent representing you, than that agent needs toknow so they are best able to let the listing agent know they are going to high for you, however, on the other hand if the agent represents the seller than you have no representation and yes the agent will go to your limit! Most folks are working with a seller agent unless they ask for a buyer's agent and are not aware of the facts & laws the govern agency duties. If you are working with an agent that is a dual agent [one representing both of you] than that agent can not negotiate for either of you but has to stay neutual and just pass information betweeen each party [seller & buyer]. Good luck!
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Tim Enix, , 34748
Fri Apr 25, 2008
If your builder will not negotiate in this market you need to find a new builder let this guy dream and pretent he is going to get multiple offers.
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