Realtor and new home purchase (sale, real estate, attorney)

[AMYL0452]

Hello,
Does anyone have any advice or experience on using a realtor vs. not using one to purchase directly from a builder? Do they offer incentives if you don't use a realtor, since they don't have to pay commission? I was told by one that it would not make a difference, but would it really? Would a realtor negotiate more things for me that I may not think to ask for. I want to buy a new home in Steiner Ranch. Any inputs??
thanks!!

[AustinGuy]

If you play your cards right, sometimes you can convince the builder to rebate you the realtor commission if you don't use a realtor. I've done this on two home purchases now, although the builder always hems and haws about it.

[AustinTraveler]

I haven't purchased directly from a builder but I would definitely use a buyer's agent. There are so many things that an agent knows about that will not be addressed by the builder. Also, they will make sure your closing goes as smoothly as possible (if they're a good agent, of course!).

[Trainwreck20]

This can be difficult, since I understand they hedge their normal pricing to consider that some buyers will not use realtors. Anyway, if you have a good realtor, they can often work somewhat of a better deal, especially if you are a first time home buyer.

[Rnelson]

Well most builders will not give any incentives in most cases. Most of the time builders are more than happy to pay us realtor over the % much more than just a regular commission. It keeps all parties far and balanced and also takes some of the work off the builder’s hand. The realtor helps the buyers and fields most of the Real Estate questions. This allows the builder to his job and not be on the phone answering question all day long.

The only builders that I know of that do allow incentives are small. Majority of major name builders do 80% of their business with realtors and their clients.

If you feel that you can get another 2k off the price with out using a realtor go ahead. If it closes two months behind schedule our the builder stops answering your calls after three months don’t say we didn’t worn you.

It’s always nice to have someone on your side if something were to happen. A home is the largest investment that most people make in their lives and a realtor job is to help and make that happen.

I help people purchase homes I don’t sale a house the house sells itself. I am part business partner part counselor and to most of my clients a friend.

Good luck

[AMYL0452]

Rnelson,
That is the best advice I could have asked for, and makes tons of sense. I'm not sure what I was thinking. I guess the almighty $ got in the way of sensibility. I just spoke to a realtor, and there is so much already I had not thought of. I will definitely need to use him or someone!
thanks everyone for the honest opinions...

[Rnelson]

Originally Posted by AMYL0452

Rnelson,
That is the best advice I could have asked for, and makes tons of sense. I'm not sure what I was thinking. I guess the almighty $ got in the way of sensibility. I just spoke to a realtor, and there is so much already I had not thought of. I will definitely need to use him or someone!
thanks everyone for the honest opinions...

If you feel that your realtor just made his commission and didn't really do anything and everything was perfect from contract to close then your realtor did a great job. We do more on the side that clients dont know about because its our job to make you feel great about the purchase and not worry you about the small details. Also the contract that your going to sign is NOT a standard TREC our ABOR contract it the builders contract. Majority of the time their ok but its also our job to have a attorney review the contract if we find some verbiage different than what we see on a regular bases.

Its a free service so take advantage of it. Most full time realtor need to eat so not only are you helping yourself your spreading the money to other families like mine

[Dazed]

I got a discount on my house for not using a realtor. It was a new house that we were building and it was written into the contract.

[sundancer]

Im a smaller builder with a inhouse real estate company. We always give a discount of 3%if you dont have a realtor. On a $200,000 house that can save you $6,000 to go toward other things. As far as the realtor goes once a contract is signed I never deal with them, its always with the owner. So save your money and look for the deals out there.

[austin-steve]

No matter whether you use a Realtor or not, hire a third party inspector to inspect the home at the 3 main stages of construction (at dry-in before sheetrock, after rough-in, and at completion).

The builder may tell you this is not necessary but do it anyway. You have a right to have your home inspected. I promise you things will be found that the builder will have to fix. And I also promise you if you don't have it inspected, the people you sell to in 3 to 5 years will have it inspected and they'll find the builder defects at that time, long after you have any recourse against the builder.

With regard to the commission, a good Realtor will keep you from buying the wrong floorplan on the wrong street at the wrong price-point in the wrong neighborhood. Lot's of factors to consider. Commission earned.

A not-so-good Realtor will just drive you around until you find something you like and will sit in the builder's office eating a cookie and sipping a soda while you fill out the paperwork. Worse yet, they'll take you to the places that offer 5% commission and Realtor bonuses.

Make sure the Buyer Rep agreement you sign gives you back any overage above the commission you agree to pay in your Buyer Rep agreement. Don't let the agent keep the overage. Then again, if the builder is offering bonuses and 7% commission, that's probably not a neighborhood you should be buying in, and your agent should know that if she's good.

Steve