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Is It Beneficial To Use A Real Estate Agent When Buying A Home From A Home Builder?
Readers Question:
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A real estate agent told me he could help negotiate the price and get us the better deal on a newly built home. The real estate agents at the builders location says they can get me a better deal if I don’t have a realtor. Who is blowing smoke? Do I actually get a better price if I go with a realtor or without?
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- Is it beneficial to use a real estate agent when buying a home …
- Surrey MLS Listings » Blog Archive » Your Home Buying Team
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Why wait a second longer to get quality answers to the real estate questions you have been dying to ask! Become a part of the largest real estate training community today and see how much fun real estate really can be.
May 25th, 2009 at 2:40 am
The Realtor is telling the truth.
New home builders actually build in the 3% they pay Realtors. If you don’t bring one the 3% goes directly to the bottom line.
Go into a new home development and tell them you want 3% taken off the top of the home.
They will most likely tell you to go take a hike.
Realtors can actually ask very specific questions that you as a neophite would never think to ask.
Realtor also know that the “Statute of Frauds” prevents the salesperson in the model home from VERBALLY promising you things and not putting it in writing.
Many people decide to NOT use an agent to buy a new home and pay dearly for this decision.
Here’s what normally happens.
They go into a new home development and the salesperson working for the new home builder asks “Are you with your agent?”
If you go to the models THE FIRST TIME without an agent you cannot bring your agent back to negotiate the contract.
Once they know you are not represented by professional council then they can go to work on you. How do they work on you? By VERBALLY promising things they know they don’t have to live by because it was never put in writing.
P.S. Always remember this if you decide to “Go it alone” Verbal promises cannot be enforced in a court of law due to the “Statute of Frauds”
Hope this helps!
Terry S.http://www.Welcome2Arizona.com
May 25th, 2009 at 7:10 am
A real estate agent can help you negotiate a lower price on your home but that is something you can pretty much also do yourself. Because even if they can help you get a lower price than what you would get yourself they are still going to charge you which in turn still has you paying someone.
May 25th, 2009 at 12:56 pm
Try looking in an online search under “Home Buyer Rebates” and add your state or city into the search line. There are a number of “buyer agents” that will represent you. In many cases, they will rebate half of their commission back to you. This amounts to $1,500.00 for every $100,000.00 in purchase price.
I don’t know what your specific market is, but if it is a buyers market (which most areas are) don’t be afraid to make a “low ball” offer. Unless you feel the offer is insultingly low, it probably isn’t low ball enough.
May 25th, 2009 at 1:42 pm
Try both ways and find out who really is blowing smoke.
The R.E. agent might worker harder because they want the commission, but you could save that money by neg yourself…
May 25th, 2009 at 6:09 pm
Weigh the price the Realtor will negotiate against what the real estate charges will be, and see what the difference will be, you will probably not save much, if anything.
May 25th, 2009 at 11:47 pm
I think it would be smarter to go with a real estate agent becuse they can go through the house and tell you how much it’s actually worth.
May 26th, 2009 at 6:46 am
The reason they say youll get a bettern deal going with a realtor is because the realtor has experience. Just do research so you know how much you should be paying for the house and why. If the builder knows that you cant be taken advantage of they will be ready to talk business. Real Estate agents just take your money, they’re only necessary if youre lazy.
May 26th, 2009 at 8:42 am
dude…of COURSE the agents at the builder are going to tell you they can get you a better deal if you don’t have a realtor because they DON’T WANT TO PAY the commissions to a realtor.
if you have already gone to the development and talked to them without a realtor, you’re out of luck.
also, fred w above is an idiot. the SELLER agent is NOT paid by both sides. the BUYER doesn’t pay the BUYER agent commission, the SELLER does that. the BUYER doesn’t pay anything, so they are NOT paid by both sides.
May 26th, 2009 at 9:01 am
not true, go w/out an agent. All they do is send a bill into escrow and then they get paid when its a done deal.
You can negociate with the builder, perhaps some builder incentives. thats about it
May 26th, 2009 at 2:52 pm
you can get a better price with the realtor….they normally will look out for you, and help you negotiate the terms.
either way the builder is paying your agent
May 26th, 2009 at 7:43 pm
Both are blowing smoke. They are working for commission and the more the house sells for, the more they make, not the opposite.
Having said that, I would never trust the sellers agent, to work for me. He will be paid by both sides and make still more money with a higher selling price.
May 27th, 2009 at 12:31 am
Unless you know the real estate business inside & out, you need a realtor. They make sure all the t’s are crossed & i’s dotted. Just because house is brand new does not mean it’s trouble free. Do have it inspected by home inspector before buying.
May 27th, 2009 at 2:01 am
Go without.
June 10th, 2009 at 10:16 pm
Here in Colorado, it isn’t common practice to bring an agent to a new built. You can, but I guess it all depends on who you want to get the 3%. If you go alone but do your research, that money is negotiable for allowances and other nice goodies. With an agent that money is gone, but you won’t have to do as much yourself.
October 12th, 2009 at 6:29 pm
A real estate agent it hired to:
A. find a suitable property
B. Negotiate the deal
C. Do the paperwork
D. Protect their clients rights
If you’ve found the house and all they’re doing is C&D, perhaps you can find an agent who will do it for a reduced comm. If you don’t go with an agent, you WILL NOT save 3%. It will be less than that, if any, in the long run. Plus, the agents/builders will surely slant the contract and warranty process their way. Let me put it this way, builders all use agents and pay 3%. If its a good idea for them, its a good idea for you.
October 12th, 2009 at 6:42 pm
Also, if there is no buyers agent, at least here in GA, the sellers agent usually gets a commission greater than 3% since they are doing all the work. Therefore, there isn’t 3% more profit to the builder to negotiate for.