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I truly have nothing whatsoever against realtors and I've worked through realtors before, but I don't understand why one would use a realtor vs dealing directly with a builder when buying new construction (as I recently saw on a House Hunters episode). We want a much more energy efficient home than standard or code minimums, so we'll probably have to buy new. Realtors deserve to get paid for their efforts, but I don't understand the value they'd provide for the increased cost - it's there whether it's readily apparent or not.
There should not be any increase in cost. A buyer's agent experienced in new construction should be able to help you evaluate things like lot selection, inspections, upgrades and options customary for your location, etc. They will also advocate for you in the event of a mistake.
There should not be any increase in cost. A buyer's agent experienced in new construction should be able to help you evaluate things like lot selection, inspections, upgrades and options customary for your location, etc. They will also advocate for you in the event of a mistake.
This in particular, though all of the other reasons hold, as well.
An agent who knows the ground (and the builders) can often get you a better deal, knows what builders are and are not allowed to do, understands the pressures that builders are under, keep a close eye on all the players (it's not just you and the builder), shepherds the deal through the lender and the title company, makes sure you get the appropriate inspections and often attends them for you or with you - there's LOTS that they do, a lot of which is the same whether it's a builder or resale, come to that. Remember, the builder's rep you work with in many states is not required to be a licensed agent and their responsibility and duty is SOLELY to the builder, not to you.
Not trying to argue, but how is that possible? If a builder has to pay a realtor a cut, there's that much less room in negotiating with the builder (were there no realtor involved). Again, I am not suggesting realtors don't deserve to be paid.
Quote:
Originally Posted by 2bindenver
A buyer's agent experienced in new construction should be able to help you evaluate things like lot selection, inspections, upgrades and options customary for your location, etc. They will also advocate for you in the event of a mistake.
I would think the builder would be familiar with (indeed be the source for info on) "lot selection, inspections, upgrades and options?" I'm retired and we'll be relocating (not CO or TX) and buying a new house in the next two years, and we just can't afford to pay for unnecessary services (if that's the case).
Not trying to argue, but how is that possible? If a builder has to pay a realtor a cut, there's that much less room in negotiating with the builder (were there no realtor involved). Again, I am not suggesting realtors don't deserve to be paid.
I would think the builder would be familiar with (indeed be the source for info on) "lot selection, inspections, upgrades and options?" I'm retired and we'll be relocating (not CO or TX) and buying a new house in the next two years, and we just can't afford to pay for unnecessary services (if that's the case).
I agree with you. My last two homes were new purchases in established HOA sub divisions. I had been around the block buy and selling homes enough to know how to negotiate with the developers sales/real estate people better then most real estate people I ever met or did business with. Of course I come for a sales/marketing, business owning background so I can read conrtracts and know how to negotiate.
Remember real estate agents get paid when the deal closes so they want all deals to get to that close, sometimes at the expense of others. Also few know squat about construction, so be real careful there.
Also in new home construction pay attention to warranties. They are your best protection and peace of mind with a new house.
I did have a lawyer check most of the documents out. My lawyer said it was all typical developer/real estate BS. We did change one part about house delivery time away from so and so unless.....LOL
Just do a quick search for the issues people have with builders and then understand agents can help with those issues. I know there's one on the front page.
I had been around the block buy and selling homes enough to know how to negotiate with the developers sales/real estate people better then most real estate people I ever met or did business with. Of course I come for a sales/marketing, business owning background so I can read conrtracts and know how to negotiate.
Me too, after a career of it, I also enjoy "the dance" and getting the best deal I can. And I appreciate that both sides have to meet, but three "sides" is going to be more expensive for a knowledgeable, willing buyer all else being equal.
But I know that many people hate negotiating and would rather turn it over to someone else, in which case a realtor might indeed save them $ over what they could do for themselves.
It's kind of a black box. We are building a custom home and are using a realtor, who represents us and the builder. She is the builder's realtor (not sales agent, as she has multiple listings on the MLS for resale homes).
Having 1 person for all parties to speak to is a huge plus and I think she helped us get a nice deal. More importantly, she'll help us with details (which colors, finishings... to pick from a potential resale prospective). If she wouldn't have offered this help, I would have found a buyer's realtor.
The one thing that you will never know is would the builder have negotiated more with a buyer's agent. I don't know, honestly. At the end of the day, we wanted someone who would help us through the process and the builder's realtor, who represents us as well is doing that.
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