Using a realtor to buy a new home (lawyer, equity)

[marypoppins]

Is it a good idea to have a realtor working with you if you want to buy a new home? Would a realtor be able to negotiate a better deal rather than dealing with the builder yourself?

I'm thinking if the realtor gets a "fee" for securing a sale, would the builder not pass on that "fee" directly to the buyer?

Any opinions welcome.

[DailyJournalist]

With the housing market the way it is builders are desperate to sell off their inventory. I would go to the builder and negotiate directly and eliminate the middle man or woman. You will get a far better deal if the builder does not have to pay the realtor a commission.

[cmj_fla]

I think you would have a better chance of being swindled by the builder if you do not have a realtor to negotiate and do the paperwork.

[Ipty]

A realtor would help but a lawyer would be asset.

[runswithscissors]

Get a lawyer because the price of raw materials is going up and you want to make sure you are getting what you are promised. Negotiate firm. I heard a custom builder say this on the radio Sunday, copper for example.

So of course, builders are going to be cutting corners IMO.

I'd suggest a resale, personally. There are many new houses for resale never lived in, specs specifically that the builder had to buy back etc. I was told this today in fact in a new development.

[GregTraub]

How would an attorney help make sure the house is built to spec????

Use an agent, builders ARE desperate to sell...at least most neighborhoods. But they also know what the market is and won't "give away" their homes. You of course have your best bet of getting a great deal on inventory homes.

As far as the comment that using a realtor would mean the builder will be passing along the cost of paying an agent...that's just un-informed. Yes the builders have the cost of marketing, advertising and commissions built into the price of their homes but they already have a pre-determined price they are willing to go down too and they re-assess their prices from time to time to match where their competition and the market is. They have agreements with Realtors that specifically state that they do not offer "special deals" to someone just because they do not use the services on an agent. If the builders did this no Realtor would ever work with builders.

Of course it's always up to you whether or not you want to use a Realtor or not, I"m sure you will feel great when you "negotiate" 3% off the asking price because your not using an agent. But I'm also sure the buyer I represent that gets the house for what it's worth in today's market, not a penny more (maybe less), additional upgrades, closing costs, inspection assistance, and contract assistance will also be extremely happy. And more importantly they will have someone on their side when dealing with some of those oh so reputable builders, and when something inevitably comes up during the closing process.

It is against the Realtor code of Ethics to promise anyone can get you a better deal than anyone else, but think about it, do you feel comfortable purchasing something so large and involved, with only the assistance of a representative of the party your purchasing from...someone that's only interest is that of the builder?

[marypoppins]

Thanks everyone for your helpful comments. I'm taking on board all that's been said, you've helped me see things more clearly now. You've made me realise how builders are there to sell their homes for the most they can, and for the good of the company......not the buyer. No matter how helpful and friendly some of the sales people appear, they are not there to look after the interests of the buyer.

Thanks again.

[runswithscissors]

Originally Posted by GregTraub

How would an attorney help make sure the house is built to spec????

Use an agent, builders ARE desperate to sell...at least most neighborhoods. But they also know what the market is and won't "give away" their homes. You of course have your best bet of getting a great deal on inventory homes.

As far as the comment that using a realtor would mean the builder will be passing along the cost of paying an agent...that's just un-informed. Yes the builders have the cost of marketing, advertising and commissions built into the price of their homes but they already have a pre-determined price they are willing to go down too and they re-assess their prices from time to time to match where their competition and the market is. They have agreements with Realtors that specifically state that they do not offer "special deals" to someone just because they do not use the services on an agent. If the builders did this no Realtor would ever work with builders.

Of course it's always up to you whether or not you want to use a Realtor or not, I"m sure you will feel great when you "negotiate" 3% off the asking price because your not using an agent. But I'm also sure the buyer I represent that gets the house for what it's worth in today's market, not a penny more (maybe less), additional upgrades, closing costs, inspection assistance, and contract assistance will also be extremely happy. And more importantly they will have someone on their side when dealing with some of those oh so reputable builders, and when something inevitably comes up during the closing process.

It is against the Realtor code of Ethics to promise anyone can get you a better deal than anyone else, but think about it, do you feel comfortable purchasing something so large and involved, with only the assistance of a representative of the party your purchasing from...someone that's only interest is that of the builder?

1. Lawyer- Anybody who buys any house without a lawyer is naive imo.

For one thing my lawyer will ensure that everything I'm told is legally in the contract with recourse. My lawyer will also ensure that my home inspector goes through the house against the spec and certifies it's as promised. And up to standards. Take it or leave it, there's alot of houses in FL.

This is not anything new to a new construction buyer and as a person who's seen alot of mess out of new construction I don't believe one single thing I'm told when buying off a plan. I'm not dealing with all the excuses of builder with lot and grade issues, mistakes like when they install extra fireplaces then want me to pay for them, wrong color tubs and dont wanna pull them out, buckled walls, popping corner bead, sloppy carpentry late delivery and a plethora of other disappointments. The above is a short list of my one and only new home purchase, btw.

(well the truth is, I will never buy a house from plans pre-building anyway never again)

They had a lottery for sales in this neighborhood in 2005 and the guy who got number ONE has the worst lot. Why? because he had no idea it was going to severely drop off on the side into a steep ravine of mess, standing water, bugs, animals, weeds, scrap trees, odor disgusting. Poor guy. Cant even walk on the entire side of his house there's barely an easement.

I understand the lawyer cramps the style of the realtor(s) who really want the buyer to get all excited, dream about the move, love the property, buy quick, settle quick, take possession quick, go with the flow and not cause difficulties. But not my concern.


2. "when something inevitably comes up during the closing process. "

This is probably a Florida thing using a realtor to close in a legal proceeding. No way for me. I use lawyers when it comes to protecting my 6 figure spending. And yes, when I closed on an 8 1/8th for 15 years but the lawyer handed me a paper that said 9% for 30 years its a good thing he was there and I walked away. Call me tomorrow you careless people, I'm not sitting here debating my supposed locked in rate.

3. "with only the assistance of a representative of the party your purchasing from...someone that's only interest is that of the builder?"

I don't quite understand this. Are you saying you have no financial interest in the sales and closing process going smoothly? I mean, you're getting paid to get the buyer to put out money to the builder right? I don't see really that your interest is any different than any seller, nothing personal or anything. REaltors want the people to buy the house as much as builders do.

Go ahead and pay a realtor but you better have a lawyer too, IMO.

[DailyJournalist]

Originally Posted by runswithscissors

1. Lawyer- Anybody who buys any house without a lawyer is naive imo.

For one thing my lawyer will ensure that everything I'm told is legally in the contract with recourse. My lawyer will also ensure that my home inspector goes through the house against the spec and certifies it's as promised. And up to standards. Take it or leave it, there's alot of houses in FL.

This is not anything new to a new construction buyer and as a person who's seen alot of mess out of new construction I don't believe one single thing I'm told when buying off a plan. I'm not dealing with all the excuses of builder with lot and grade issues, mistakes like when they install extra fireplaces then want me to pay for them, wrong color tubs and dont wanna pull them out, buckled walls, popping corner bead, sloppy carpentry late delivery and a plethora of other disappointments. The above is a short list of my one and only new home purchase, btw.

(well the truth is, I will never buy a house from plans pre-building anyway never again)

They had a lottery for sales in this neighborhood in 2005 and the guy who got number ONE has the worst lot. Why? because he had no idea it was going to severely drop off on the side into a steep ravine of mess, standing water, bugs, animals, weeds, scrap trees, odor disgusting. Poor guy. Cant even walk on the entire side of his house there's barely an easement.

I understand the lawyer cramps the style of the realtor(s) who really want the buyer to get all excited, dream about the move, love the property, buy quick, settle quick, take possession quick, go with the flow and not cause difficulties. But not my concern.


2. "when something inevitably comes up during the closing process. "

This is probably a Florida thing using a realtor to close in a legal proceeding. No way for me. I use lawyers when it comes to protecting my 6 figure spending. And yes, when I closed on an 8 1/8th for 15 years but the lawyer handed me a paper that said 9% for 30 years its a good thing he was there and I walked away. Call me tomorrow you careless people, I'm not sitting here debating my supposed locked in rate.

3. "with only the assistance of a representative of the party your purchasing from...someone that's only interest is that of the builder?"

I don't quite understand this. Are you saying you have no financial interest in the sales and closing process going smoothly? I mean, you're getting paid to get the buyer to put out money to the builder right? I don't see really that your interest is any different than any seller, nothing personal or anything. REaltors want the people to buy the house as much as builders do.

Go ahead and pay a realtor but you better have a lawyer too, IMO.

Very well said, a Realtor has as much of an interest in the sale going through as does the seller. I would never trust a realtor for any purchase, an attorney is the only person that can assure that the purchase goes correctly. In florida Realtors try to act as if they have law degrees. Do yourself a favor and hire an attorney a person that has actually studied the law.

[runswithscissors]

Well, lets be fair, the real estate agents were really helpful in the past few years making everyone's dream come true. Owning a home for everyone, and the bigger the better and it's ok if it's gonna adjust in 3 years cuz you're gonna be making ALOT more money then, right? .....Low or no money down, ARMS, creative financing, optional rate payments where your INTEREST goes on the back end (my personal favorite)....and just because we're in good with the builder and financier they can even give you a HELOC so you can pull all your equity out all the time for shoes and vacations. ....I'm glad there's a Realtor Code of Ethics or we'd be in a big mess right now.