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Old 10-17-2013, 10:46 AM
 
Location: Raleigh, NC
11,791 posts, read 27,440,956 times
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I think this video has a good point although I don't like the term "steering".


New Construction real estate purchases negotiating strategy - YouTube

Vicki
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Old 10-17-2013, 10:57 AM
 
189 posts, read 439,666 times
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You will not lose anything going with an Agent for a New home as the Builder pays the commission for both Agents.
It is highly unlikely they give a discount for going alone, you may think you got a good deal, but most probably not.
Is there any reason you do not want to go with the same Agent who showed you resale homes ? That would be the logical choice unless that person was the Listing agent for that house, then you would want your own Buyer's Agent.
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Old 10-17-2013, 11:06 AM
 
9,198 posts, read 21,155,718 times
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Quote:
Originally Posted by JONOV View Post
Would you get a divorce/plan an estate/defend yourself against criminal charges without an Attorney? No.
Would you buy insurance from someone who didn't have an insurance license (not that you could), but No.
Would you buy investment products from someone without their licenses? No.
Would you let your kids be taught by a teacher without her license? No.
The logic of your argument escapes me. Presumably the seller's agent is licensed.

Seems to me the issue is better framed as "go it alone" vs. "hiring an expert." For most people, having a buyer's agent is probably advisable, but there are some who may be entirely comfortable and capable of negotiating on their own. Just know that the seller's agent is not on your side, no matter what they may make you think.
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Old 10-17-2013, 11:30 AM
 
Location: Raleigh, NC
11,791 posts, read 27,440,956 times
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Originally Posted by CHTransplant View Post
The logic of your argument escapes me. Presumably the seller's agent is licensed.

Seems to me the issue is better framed as "go it alone" vs. "hiring an expert." For most people, having a buyer's agent is probably advisable, but there are some who may be entirely comfortable and capable of negotiating on their own. Just know that the seller's agent is not on your side, no matter what they may make you think.
Many of the onsite agents aren't licensed and aren't agents.

Some are just sales associates that work for the builder.

Vicki
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Old 10-17-2013, 11:31 AM
 
9,198 posts, read 21,155,718 times
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Ahh - thanks Vicki!
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Old 10-17-2013, 11:41 AM
 
Location: Raleigh, NC
11,791 posts, read 27,440,956 times
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Originally Posted by CHTransplant View Post
Ahh - thanks Vicki!
As always...you are very welcome!

The really worst part of that is those onsite sales associates aren't bound by the ethics and the rules of being a Realtor so they don't even have to explain WHO they work for!

Vicki
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Old 10-17-2013, 12:36 PM
 
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I agree you should probably use a buyers agent, just make sure you get someone who is experienced. I have had a few friends that were given a new agent, when they contacted a larger firm, who had no idea how to negotiate.
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Old 10-17-2013, 12:44 PM
 
Location: Cary, NC
31,595 posts, read 55,307,520 times
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Originally Posted by matsmom View Post
I agree you should probably use a buyers agent, just make sure you get someone who is experienced. I have had a few friends that were given a new agent, when they contacted a larger firm, who had no idea how to negotiate.
Yes. Some level of experience is exceedingly helpful.

The onsite agents will tell you that too many buyers' agents really have no clue, and do not get involved at all.
Too many just drop off the "victim" with the onsite agent, and then show up on payday.

I tried to work with a couple this summer/fall, who had absolutely no idea how to complete our standard forms, or what the standard forms meant.
They have almost no experience other than dropping people off with onsite agents, and they know the onsite agent will handle the documents, close the deal, and get them paid.
Very poor choice of agent, if the buyer wants support, help, and advocacy, IMO.
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Old 10-17-2013, 01:45 PM
 
214 posts, read 603,069 times
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If you are new to the area, new to home buying or shopping from out of town, get a well recommended, experienced buyers agent who preferably has already worked with they neighborhoods you are interested in and let them earn half the commission.

If none of these apply then there are several ways you can get a hold of all or most of the half of the commission that would otherwise go to your buyers agent. Options include 1) shopping for a flat fee broker who will refund you most of the commission, 2) look online and find one of the services that refunds you 1.5% of the price, but keeps the other 1%, or 3) negotiate with the sales agent under the threat of getting a buyers agent. To illustrate this, suppose they are selling a $500k house, and you say "sell it to me for $450 or I am getting a buyers agent to negotiate for me", they will realize that a 5% commission on $450k is $22,500, but if you get a buyers agent and buy at $500,000 they will only get 2.5% of this, or $12,500. The seller agent will get $10k more by dropping the price $50k if it keeps you from getting your own agent, and they have a lot more discretion on sales price, especially lot fees and options prices, than you might think.
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Old 10-17-2013, 01:52 PM
 
Location: Raleigh, NC
11,791 posts, read 27,440,956 times
Reputation: 8114
Quote:
Originally Posted by emanresu2 View Post
If you are new to the area, new to home buying or shopping from out of town, get a well recommended, experienced buyers agent who preferably has already worked with they neighborhoods you are interested in and let them earn half the commission.

If none of these apply then there are several ways you can get a hold of all or most of the half of the commission that would otherwise go to your buyers agent. Options include 1) shopping for a flat fee broker who will refund you most of the commission, 2) look online and find one of the services that refunds you 1.5% of the price, but keeps the other 1%, or 3) negotiate with the sales agent under the threat of getting a buyers agent. To illustrate this, suppose they are selling a $500k house, and you say "sell it to me for $450 or I am getting a buyers agent to negotiate for me", they will realize that a 5% commission on $450k is $22,500, but if you get a buyers agent and buy at $500,000 they will only get 2.5% of this, or $12,500. The seller agent will get $10k more by dropping the price $50k if it keeps you from getting your own agent, and they have a lot more discretion on sales price, especially lot fees and options prices, than you might think.


I would PAY to see the onsite agent's face when you say something like that. That is just ridiculous! You would look very foolish and it would be obvious to that agent/salesperson that you are not knowledgeable as to how real estate transactions really work.

I don't know how many homes in Wake or Durham or Johnston counties that you have purchased but this is just not how it works.

Seriously, does it work like this in other states?

Vicki
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