Should you have an agent with new construction? (Austin, West: sales, real estate)

[kjkw]

I have always thought you should but I did have a friend not use one and the builder gave them the commission as a credit to get the price down. Also if you use one do they ever share the commission? Seems like a lot of money if they don't have to show a bunch of houses, especially for a new home over 600K.

[AWhalen11]

The answer is yes; you should always have an agent with you when visiting new construction communities. The site agent is there to represent the builder and their interests only! When you have an agent, they are there to protect your interests at all times and negotiate on your behalf. The "credit" they give to buyers will usually come in the form of closing costs or design center incentives. They don't typically like to reduce their price because it can set a precedent for future home sales. When using a Realtor, they can negotiate on your behalf and get you a better deal. By having access to recently sold homes in the neighborhood, they can to use some homes as comparable properties to determine if your home is at market value.

[centralaustinite]

Yes, unless you are an experienced attorney. Especially if the new construction is a true custom where you are financing the construction but even if it is a standard build from a production builder. Of course you need an agent experienced in new constuction and they aren't always easy to find, an alternative is have a real estate attorney look over all the contracts.

[FalconheadWest]

The builders here in Austin do not give commissions meant for agents back to buyers. The money was probably already on the table ready for negotiations, and the sales rep used words to make it sound like they wouldn't get it if they brought back an agent. The builders are starting to hurt a little here, so much is negotiable. Only the agents know how to push the buttons to truly get what you can get...

Also, the agent's commission is from their marketing budget, not from the net of the home proceeds budget. Two different funds that are looked at quite differently from a builder's perspective.

[kjkw]

Originally Posted by FalconheadWest

Also, the agent's commission is from their marketing budget, not from the net of the home proceeds budget. Two different funds that are looked at quite differently from a builder's perspective.

Interresting

Thanks everyone for your responses.

[kjkw]

Originally Posted by FalconheadWest

The builders are starting to hurt a little here, so much is negotiable. Only the agents know how to push the buttons to truly get what you can get...
.

What makes you think they are starting to hurt?

[FalconheadWest]

Originally Posted by kjkw

What makes you think they are starting to hurt?

Because the marketing to us, agents, is changing and offering more incentives. My clients get my knowledge of those incentives plus anything else I can negotiate for them.

[RoamingTX]

Honestly, it really depends on how many times you’ve been through the process and how much you know of the builder and market.

I’ve bought new builds both represented and without. Best deal I ever made was without, but that was my fourth purchase and I was willing to walk and knew it was a situation I could hang them over a barrel.

95% of the time, I’d say having a GOOD agent will be beneficial. Unfortunately, they’re in short supply.

[escanlan]

Originally Posted by kjkw

I have always thought you should but I did have a friend not use one and the builder gave them the commission as a credit to get the price down. Also if you use one do they ever share the commission? Seems like a lot of money if they don't have to show a bunch of houses, especially for a new home over 600K.

To Do:

1. Use an Agent for the benefits they can provide
2. Make sure you have phase inspections performed on the home by your own Inspector

[Mimmyu]

We used Redfin to get the rebate and negotiated down the price of the house. And this was building from ground up, not a spec house.