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DH and I are looking at both new construction and "newer" homes in raleigh. Someone suggested to me that I could get a better deal in the new construction sub's if I go in on my own with out a realtor. But we are going to have a realtor showing us homes for sale in the area that are not new construction. How does this work? Any suggestions or advice?
I've been doing a lot of "buy a house" reading and every single book has highly recommended taking a realtor with you to buy a new home. The salespeople at the new construction sites represent the builder and you would benefit from having a professional look out for you and negotiate price and concessions and upgrades, etc.
I've been doing a lot of "buy a house" reading and every single book has highly recommended taking a realtor with you to buy a new home. The salespeople at the new construction sites represent the builder and you would benefit from having a professional look out for you and negotiate price and concessions and upgrades, etc.
I agree with Indigo. This question has been asked before on this forum and almost all of the responses echoed the same sentiment.....that it is always in your best interest to have your own buyer’s agent to represent you when purchasing a new construction home. The realtors that work on site aren't looking out for you and to quote a previous post on this very topic .... the realtors in the sales centers are paid to "Pluck you". You need somebody on your side, not somebody who is paid by the builder. I would definitely get a buyers agent to negotiate a new construction purchase.
The fact is that the buyer's agent commission is usually built in to the price and if you opt out on buyer representation then the builder will just make more money. It is usually understood that buyer's prefer working with their own agent representation. It makes the deal more smooth and gives you a better negotiating edge. In some places around the country, you may find that flexibility in home pricing with out a buyer's agent but it is not very common practice in this area.
If you signed an "Exclusive Agency Agreement" with your realtor, then they are contractually obligated to represent you in any home purchase, even if there is no buyer's agent commission offered. There is one section in this " Buyer's agency agreement" that protects the agent and it will specifically mention a commission that will be paid to the agent by you if the seller isn't offering compensation. So be careful, you could look at a FSBO or a new construction on your own but you may be contractually obligated to compensate your agent with your own money if you choose to buy and the seller doesn't compensate the agent.
Quote:
Originally Posted by mcfamilyof4
DH and I are looking at both new construction and "newer" homes in raleigh. Someone suggested to me that I could get a better deal in the new construction sub's if I go in on my own with out a realtor. But we are going to have a realtor showing us homes for sale in the area that are not new construction. How does this work? Any suggestions or advice?
I bought my home without one but only because I started out with a lazy one. A good realtor will make you life easier but they have to be good. I would only recommend going alone if you have extensive knowledge of home construction and the market.
Just find a GOOD realtor and go with them. I dont think any builder will cut the price if you go alone. they might says they are but they might make up the money in another area of the deal like upgrades. I think that a realtor can negoitiate a price better.
We are buying new construction without a realtor. We had one for the first few homes we looked at, but decided we could get just as good a deal without one, and using a lawyer would be better. We are also hiring a home inspector. I don't see the need for a realtor with new construction.
DH and I are looking at both new construction and "newer" homes in raleigh. Someone suggested to me that I could get a better deal in the new construction sub's if I go in on my own with out a realtor. But we are going to have a realtor showing us homes for sale in the area that are not new construction. How does this work? Any suggestions or advice?
No one "needs" a realtor period.
When we first moved down here we used a buyers agent because we wanted to work with someone who knew the area a lot better than we did and we valued his advice. We wanted to get into a house quickly and so new construction was not an option.
After being down here a few years, we knew where we wanted to be, we found the neighborhood we wanted and we negotiated the deal ourselves. Did we save ourselves any money? Maybe, maybe not. My wife and I are not pushovers and if you are not comfortable negotiating deals than maybe you should have an agent. However, not every realtor is necessarily better than you at negotiation.
It is true that the sales agent for a builder is only looking out for the builder, but the buyers agent is looking out for their commission. The only one looking out for you is YOU.
As another poster has pointed out, if you sign an exclusive agreement, your agent is going to get paid one way or another, so you should avail yourself of their services at a new construction subdivision.
As for the original question, you don't NEED to have a realtor for any transaction and especially a new construction development if you are comfortable negotiating a deal. If you are worried that you will get taken, then by all means have a buyers agent.
Dave in Jersey, things may be different in NJ, but NC is a "Buyer Beware" state. Once you've signed a contract you're in it. It's important to have representation to make sure you know what you're signing. It's free to you.
Dave in Jersey, things may be different in NJ, but NC is a "Buyer Beware" state. Once you've signed a contract you're in it. It's important to have representation to make sure you know what you're signing. It's free to you.
Personally, I wouldn't trust a realtor to review a contract. Thats what lawyers get paid to do. We may have negotiated our "deal" but we had a lawyer review the contract, and we have always done so with or without realtor representation in the past.
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Buyer's agent is important
