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As you are ALL aware I am looking to buy a home. One of the builders told me they could write me a check after closing for 1-2% of the total cost of the home. Does anyone know what this is? How does it work? Is it legal?
As you are ALL aware I am looking to buy a home. One of the builders told me they could write me a check after closing for 1-2% of the total cost of the home. Does anyone know what this is? How does it work? Is it legal?
I'm assuming this is to cover the closing costs?? If you are in contract with them and they are offering to pay closing costs, it would be written up in the contract that they are responsible for closing and prepaids. I personally havent heard of a builder cutting you a check after closing, but I would make sure you have something in writing.
Maybe you can ask some of the people who are living in the community if they had the same offer and how it turned out for them.
Do you have a realtor? If so, I would ask them, as they should be able to tell you how this should be handled and how to make sure it is properly documented.
I've heard of this in other states. I've heard it called "seller help." It's often negotiated to be a set amount rather than a percentage.
I have no idea if this is done through a RE contract or a separate contract. I also don't know if this is legal in every state.
In some cases, the seller/builder provides a large sum at closing. In turn, this amount was actually rolled into the financing of the home. I don't think this is legal today, nor is it a good idea financially speaking. Barring that, I doubt it's possible since most homes aren't going to appraise for a large amount over the selling price.
It has nothing to do with closing costs. A big builder told me they could potentially pay for all closing costs and write me a check for up to 2% of whatever the house was sold for - if we don't use a realtor. I understood it as instead of them paying a realtor 3% they could just give a portion of it to me. Obviously it would be in writing in the agreement and would have to be accepted by the builder in the contract. Just wondering what it's called bc when I tried to explain it to another builder he had no idea about it
I would highly recommend having a realtor, even if you are buying new construction. It sounds more to me like they are trying to give you an incentive not to have one - which sounds a tad fishy to me.
I would take the money, every realtor is going to tell you that you need a realtor for new construction..... for obvious reasons$$. We had one for our new home construction, and other than getting some free Bobcats tickets, it was a waste (we did all the shopping solo). Some builders offer the incentive, others don't. Ours didn't, so we opted for a realtor to get the commission rather than let the builder keep it all, but had they given any incentive, I would have taken it.
I would take the money, every realtor is going to tell you that you need a realtor for new construction..... for obvious reasons$$. We had one for our new home construction, and other than getting some free Bobcats tickets, it was a waste (we did all the shopping solo). Some builders offer the incentive, others don't. Ours didn't, so we opted for a realtor to get the commission rather than let the builder keep it all, but had they given any incentive, I would have taken it.
I agree. The last time I was under contract I put a realtor on the contract but he didn't do anything for us. We found the property by ourselves...and I mean nothing else and yet was going to collect a nice commission from it. As you an see, I do my own research so what else is the point of having a realtor on new construction?
I agree. The last time I was under contract I put a realtor on the contract but he didn't do anything for us. We found the property by ourselves...and I mean nothing else and yet was going to collect a nice commission from it. As you an see, I do my own research so what else is the point of having a realtor on new construction?
We bought new construction here and did use a realtor. For one thing, it was nice to have someone on our side to pose questions to and walk us through a few things on the contract. Also (and in this case our situation differs from yours) we were still living up in DC between the time we signed the contract and the time the house was built, so we appreciated having a pair of eyes down here to check up on things while the place was being built.
We bought new construction here and did use a realtor. For one thing, it was nice to have someone on our side to pose questions to and walk us through a few things on the contract. Also (and in this case our situation differs from yours) we were still living up in DC between the time we signed the contract and the time the house was built, so we appreciated having a pair of eyes down here to check up on things while the place was being built.
It cost us nothing so....there ya go.
I can understand that it would be helpful in that situation. I can also understand that a real estate agent would be helpful in a used home situation or for anyone not familiar with locations...I am not here to bash real estate agents, I have many friends who are real estate agents and are good at what they do. I personally didn't understand why I would need a real estate agent when I already did my research and what if I already pick out a new construction property that I like?
I think I just had a bad experience with my last real estate agent...I told him everything I wanted and yet he still didn't offer advice, he didn't help much, he showed me 4 homes that didn't have anything I was looking for. I wanted advice on other areas and I didn't get advice - and then when I (emphasis on I) found the new construction property I still put him on the contract and he was going to get a nice commission check from it. And I still didin't mind doing it because it's not like it would've helped me if I didn't put him on there. Needless to say, we backed out of that contract and now we're back to square one with looking at homes. I am looking at new construction in Millbridge and if I do decide to buy there without looking at resale homes again I won't have a realtor this time...but if I am looking at older homes as well - of course I'll put the realtor that showed me those homes on the contract regardless of what I choose because he/she spent the time with me to check out other properties. I just want a realtor that is going to have my best interest at stake and I didn't get it the first time around!
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