[gulfer]

I have a couple of questions on this topic:

What is a reasonable offer for these homes? Take Astoria Homes for example. I see the website, view the floor plan I like and select 1. Without a realtor or buyers agent and have my own financing, could I assume to subtract the 6% realtor commission out of this price? What about the money the builder pays to the realtor in addition to this. Is it safe to say, to offer 15-20% less then what the salesperson (home builder) is asking?

What are downfalls of this? Am I putting myself at risk to get screwed? If I miss something, would the builder not be liable to fix my home?

Either way, is this transaction like a auto purchase? You see the sticker on the window, then the negotating begins and hopefully come up with an agreeable number.

[Sorcerer68]

Why would you do this? An agent won't cost you a cent. If you have to ask these questions, get one. Not having one doesn't save you anything, it just puts you at a disadvantage to the seller. Many assume they will save the 6% commission but in fact it's rarely the case. Interview a few agents and get one and let them do the work. I'm a professional investor and a former top producing agent.

If you were a pro, I wouldn't tell you this but then again you wouldn't be asking the questions above. If you want to educate yourself about buying real estate, there's a great book written by Gary Keller called Millionaire Real Estate Investor. There's good stuff just for buying homes too.

Good luck.

[Dilly]

#1, Astoria does not or at least has not been paying any commission to Realtors, that's why they don't sell as many homes as other builders.

#2, builders for the most part will not give you the co-op they offer a buyer's agent to a buyer.

#3, where are you getting the 6% commission from?? There is no "standard" commission rate. On average a buyer's agent's commission on a home is 2.5-3% in Las Vegas.

#4, If you don't want to get screwed over like Socerer68 said, simply hire a Realtor, it doesn't cost you anything! Beyond that, if you hire a good agent they'll sit down with you to discuss your needs, where you want to be, make sure you aren't getting screwed by your lender, negotiate the terms in YOUR FAVOR, the sales person at a builder's site works for the builder and the builder's interest only. A good agent will most likely also be able to, after discovering your needs and wants, to show you other homes you may not have found on your own, at least not without putting in a lot of hours of searching.

[olecapt]

Originally Posted by gulfer

I have a couple of questions on this topic:

What is a reasonable offer for these homes? Take Astoria Homes for example. I see the website, view the floor plan I like and select 1. Without a realtor or buyers agent and have my own financing, could I assume to subtract the 6% realtor commission out of this price? What about the money the builder pays to the realtor in addition to this. Is it safe to say, to offer 15-20% less then what the salesperson (home builder) is asking?

What are downfalls of this? Am I putting myself at risk to get screwed? If I miss something, would the builder not be liable to fix my home?

Either way, is this transaction like a auto purchase? You see the sticker on the window, then the negotating begins and hopefully come up with an agreeable number.

Generally not a problem with Astoria...they generally don't cooperate with RE Agents...when they do...be leery...it is a dog they can't get rid of...

You will generally get no consideration from a Builder for not having an agent. He considers that to make you his private pigeon who he gets to pluck for his private enjoyment and enrichment.

If you don't know what is a reasonalbe offer on those houses you need an agent. You are basically agreeing that you don't know how to represent yourself but would love to save some money if you could.

On a home you should generally know what you are prepared to pay going in. The transaction is much more complex than a car. You will get taken with an agent generally...you get taken worse without one. The process is unfair and wired against you and all you can really do is walk if it is too bad. Determining too bad is where an agent is helpful.

[scgraham]

Originally Posted by gulfer

I have a couple of questions on this topic:

What is a reasonable offer for these homes? Take Astoria Homes for example. I see the website, view the floor plan I like and select 1. Without a realtor or buyers agent and have my own financing, could I assume to subtract the 6% realtor commission out of this price? What about the money the builder pays to the realtor in addition to this. Is it safe to say, to offer 15-20% less then what the salesperson (home builder) is asking?

What are downfalls of this? Am I putting myself at risk to get screwed? If I miss something, would the builder not be liable to fix my home?

Either way, is this transaction like a auto purchase? You see the sticker on the window, then the negotating begins and hopefully come up with an agreeable number.

Generally speaking, builders don't waive the buyer agent's commission for buyers who haven chosen to not be represented. You can, however, negotiate a rebate from your buyer's agent.

For the sake of truth, let’s assume that a home builder has agreed to give you a discount because the buyer has chosen not to be represented by a buyer's agent. Questions to ask:

- Why would the builder waive the buyer agent’s fee in spite of what has just been shared on this site?

- Is the builder trying to save the buyer money or himself?

- How does the buyer really know that it is the buyer agent’s fee that is being saved?

- Is the buyer able to discern the contractual details of the transaction to confirm that indeed the commission has been waived? Or is it just smoke and mirrors?

- Is the discount that is being offered something that could have been negotiated anyway? Or perhaps even more with an experienced buyer‘s agent? Who is looking out for you?

[airics]

do you need a realtor? let me give you the scenario that happened to me.... My wife and i were looking at a brand new home from Richmond American last December. It was approx 1500sf price was 229. We loved the house. We decided to make our decision on what to offer the next day. Incidentally we were on our own.. no agent... the next day we decided that we were going to offer 208. As we pulled out of our 1st home (we were buying #2), i saw a sign that said "buy a bank foreclosure" and the phone number. I called and left a message. About 30 minutes later, (we had just arrived at Richmond American homes and were in the office waiting), the phone rang and it was an agent on the other end. He told us just to give him 1 day... look at some of these bank owned properties.... I told Richmond American that we just wanted to look again at the model, we hadnt decided yet. Before we left, i asked the rep about making an offer of 208k, he said not a chance, maybe only a couple thousand off... So we left.. This realtor (working with the foreclosures) came over that night with a bunch of listings (probably 40 or 50 - our price point was 275k or less) and said to pick anything that stood out... We picked about 15 homes... the following morning he showed us the 15 homes... yes some were rough... but 2 were absolutely gorgeous.. one at rhodes ranch (bank asking 240k) and one at pavona estates in the northwest (bank asking 269k).... we offered 265 for rhodes ranch (there were many offers on the property already -THATS WHAT AN AGENT CAN FIND OUT -) and offered 240 (yes a lowball - but there were no offers yet on pavona 2 days on mkt)... it ended up that Rhodes Ranch sold for 280 and we BOUGHT pavona for 252... Needless to say, in 2006 Pavona sold for almost a half million, the guy still owed 428k, and Countrywide paid 325 at the auction for the property.... Heck i have a putting green in my backyard and so much tile ($60k worth to be exact) that this house was a steal.....

The point is , without an agent, i would have never found these houses, found out the history, been advised at what to offer, and which areas are ones that are good and those to watch out for..... The house is almost 2600 sf, three floors, tile, granite, you name it, its got it...
GET AN AGENT!

One benefit that you have though, is this web forum, i found it after i bought the house.