How much should the agent get? (Arlington: flat fee, real estate, broker)

[BayAreaFamily]

Hi, so we're thinking of having a builder build a custom home for us in Arlington. The builder doesn't use an agent. He's fine with our using one, but will raise the price of the house to cover paying for the commission.

I have two questions: 1) how much commission should this agent get? I already have the builder and the land, so that reduces the amount of work for the agent substantially and 2) are there agents that specialize in these types of transactions versus a generic agent?

We're from out of state and this is the first time we'd be doing something like this.

Thanks.

[VRE332]

Originally Posted by BayAreaFamily

The builder doesn't use an agent. He's fine with our using one, but will raise the price of the house to cover paying for

Thanks.

First you're from out of state, building a home in an area you hardly even know, you're going to pay more for the house so you can use your own agent? Are you ok?

[Margery]

Why don't you pay the agent (actually her broker) direct? If you are financing this purchase why would you want to pay interest for 15 or 30 years on a broker's fee that has been added in to the price of the home? There are brokerages that allow their agents to set the fees and there are many agents who will work for a flat fee. These are usually the independents, the big name brokerages are very rigid about fees.

[cb at sea]

Why would you use an agent when you have a builder????

[BayAreaFamily]

Thanks Margery for a helpful, substantive response. Actually, that's what we were going to do - pay the agent/broker directly. I was wondering what would be a reasonable amount to pay him/her?

[vanyali]

What are you paying the agent to do for you? You already found your property and have already tied into a builder. What else do you want?

[BayAreaFamily]

Ok, let's try this again. I obviously didn't ask the question properly. I'm looking for someone who will represent my interests in the transaction - ex. review the contract, make sure all the paperwork is in order (inspections, permits, check future zoning issues, etc). Also, it would be great if that person could tell us if the price per square foot for the new construction is reasonable for this particular zip code. The house to be built is not in a development.

Obviously, the buyer is going to do what is best for him. So I need a representative experienced in this area who will look out for us. And then, how much is reasonable to pay this person in commissions or a flat fee.

Thanks.

[Nancy in Nokomis]

You need a real estate lawyer not an agent!

[seldomseen]

You need a Buyer's Agent...

[tamitrail]

If you are asking them to check permits and future zoning issues as well as keep up on all the different inspections (not just one final house inspection), you are going to have to pay them well. I would contact some realtors and see if they are willing to do all of that and what fees they will agree to: a flat fee or a percentage of the purchase price and if you can, definitely pay them directly. A realtor can work for 2% -6% of the purchase price, but not necessarily to do all that you want them to do. Some will work on a commission on the base price of the house and not the upgrades. I don't think anyone could give you an actuall dollar amount here. Honestly, I would trust a lawyer more in this case because it seems like you are asking a lot.