Is it better to buy new construction directly from the developer or buy new construction through a broker from an independent real estate agency?

Asked by Question, Hoboken, NJ Thu Apr 5, 2012

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Question, Home Buyer, Hoboken, NJ
Fri Apr 6, 2012
Thank you all for your informative responses.
0 votes
Janet Nation,…, Agent, Baldwin, NY
Thu Apr 5, 2012
This is a great question, absolultely use a broker. I have two past clients that had very bad experiences working directly with a developer. The developer will not be working in your best interest and unless you are skilled at real estate transactions, it's going to be difficult to negotiate terms acceptable/favorable to you.
0 votes
Linda Misink…, Agent, Mt Ephraim, NJ
Thu Apr 5, 2012
The developer is going to be looking out for their own best interests so you need to have someone representing you. It's a good idea to get a buyer agent who can negotiate a better price and/or upgrades for you. A developer will also tell you that a home inspection is not necessary because building inspectors will make sure everything is up to code. I would highly suggest to my buyer that a qualified home inspector come in to represent them.

Good luck in your search for a home.

Linda Misinkavitch
Mobile: (609) 280-2807
Office: (856) 931-1200
Linda.Misink@Gmail.com
KingsGate Realty • 57 W. Kings Highway • Mt. Ephraim, NJ 08059
0 votes
Irina Karan, Agent, Aventura, FL
Thu Apr 5, 2012
I have negotiated many amazing deals from the developer that would never happen if the buyer went directlly (I've seen solo buyers overpaying in the same developer's office).
Some included 2nd parking, or floor done, or the view that was "reserved"...
I discounted the price so that my clients would not be burdened by the "developer fee" of 5% on top of the purchase price.

The process looked seemless to my buyers.

An independent brokerage agent will also find out the scoop - which might change your buying decision towards another property altogether, which the developer sales people will be pressuring you to buy in the development.

Irina Karan, CDPE
IrinaKaran@gmail.com
Beachfront Realty, Inc.
0 votes
Karina Abad, Agent, Hoboken, NJ
Thu Apr 5, 2012
Hello good question! Many buyers think that if they go straight to the source, in this case a developer they will do better than working through an agency. This unfortunately is not true.

Most recently with my experience, I was able to negotiate a price $18,000 less than the price they told my buyers was their bottom price at a Toll Brothers property in Hoboken. I was able to provide Toll with some research and we negotiated successfully.

Not only can an agent negotiate on your behalf the best price, they are in the know about any pit falls, or perks that could be shared with you.

Hope this helps! And remember, working with a real estate agent doesn't cost you anything. On the contrary, it saves you money.

-Karina
0 votes
Darren Giord…, Agent, Hoboken, NJ
Thu Apr 5, 2012
I agree with Laura. You won't get a discount if you go straight to the Developer where as a Buyers Agent will look out for you and you're family. I've been working on a bunch of new developments and they all welcome Buyers Agents-1450 Washington, Maxwell, Trump, 77 Hudson. If you need any help, feel free to give me a call.

Regards,

Darren Giordano
Sales Partner
Prime Real Estate Group
201-723-3300
darren@primereg.com
Web Reference:  http://www.gioMOVES.com
0 votes
Laura Gianno…, Agent, Manahawkin, NJ
Thu Apr 5, 2012
Hire a buyer's agent, so you have someone looking out for YOUR interests. And be sure to get a home inspection. Good Luck!
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