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Old 05-06-2010, 04:04 AM
 
Location: Goodyear, AZ, USA
27 posts, read 45,889 times
Reputation: 44

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I'm in town from out-of-state to look into the housing market. I had planned to see several builders to talk about options available and flexibility of floor plans, etc. in spec houses.

I was just told by a relative here that if I go to a builders new homes office and view any models, etc., without having secured the services of a realtor, that I could not use a realtor later in any dealings with them and must use the builder representative.

Is this for real!?!?

That sounds very anti-consumer to me!

Knowing folks . . . please enlighten me.
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Old 05-06-2010, 08:22 AM
 
1,619 posts, read 1,943,556 times
Reputation: 2176
I believe that is correct. If nothing else it is correct ethically. The builder's representative probably works on commission. If they invest time they deserve to get the rewards.

Why exactly do you find it anti-consumer?
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Old 05-06-2010, 09:10 AM
 
Location: Goodyear, AZ, USA
27 posts, read 45,889 times
Reputation: 44
I find it anti consumer because the builder's realtor is exactly that -- 'the BUILDER'S realtor'. He/she is acting on behalf of and in the interest of the builder.

A buyer's agent is at least supposed to be acting on your behalf. I realize that since they are paid commission, their motivation to help you reduce prices is somewhat tainted (higher selling price = higher commission). But at least a buyers agent SHOULD be looking out for your interests. They should be helping you with discovery and advising you on proposals by the builder that may be detrimental to you down the road, etc.

If I'm going to spend more than $300K for something, I am for sure wanting to have someone there on my side adivising me on how best to maximize my purchase.
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Old 05-06-2010, 09:47 AM
 
Location: Peoria
52 posts, read 74,518 times
Reputation: 91
The whole Phoenix real estate game is anti-consumer so get used to it.
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Old 05-06-2010, 09:59 AM
 
Location: Oxygen Ln. AZ
8,676 posts, read 10,929,637 times
Reputation: 4798
This is just the way it is here. To insure you are happy, just hire the realtor and have them escort you around. Be sure to sign in at the model home center.
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Old 05-06-2010, 10:53 AM
 
Location: Scottsdale, AZ
1,475 posts, read 1,824,110 times
Reputation: 1647
Yes, your agent must accompany you on the FIRST visit to a builders office. Seems kind of unfair doesn't it? When you deal with a builder you play by their rules.

Builders sales people are notorious for making promises that they will not put in writing. Needless to say they aren't worth the paper they are written on.
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Old 05-06-2010, 11:14 AM
 
Location: Gilbert - Val Vista Lakes
6,066 posts, read 8,488,475 times
Reputation: 3679
It really isn't anti-consumer; it's just the way builders do business.

And they change their rules depending on how fast their homes are selling. When their homes are selling fast they won't pay a realtors commission, or it will be too low to deal with.

On the other hand, when sales are slow for them, they are begging realtors to bring clients to them.

It is correct that you must bring your realtor to the first visit, otherwise they will not pay your realtor a commission. You can still be represented by your own realtor, but you would have to pay the fee; the builder won't.
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Old 05-06-2010, 12:57 PM
 
1,619 posts, read 1,943,556 times
Reputation: 2176
> A buyer's agent is at least supposed to be acting on your behalf.

If you want a buyer's agent you have to GET a buyer's agent. Just arrive at the builder's with your agent, or at least with the name of the agent you are working with.
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