U.S. CitiesCity-Data Forum Index
Go Back   City-Data Forum > General Forums > Real Estate
 [Register]
Please register to participate in our discussions with 2 million other members - it's free and quick! Some forums can only be seen by registered members. After you create your account, you'll be able to customize options and access all our 15,000 new posts/day with fewer ads.
View detailed profile (Advanced) or search
site with Google Custom Search

Search Forums  (Advanced)
Reply Start New Thread
 
Old 07-19-2012, 12:19 PM
 
41 posts, read 90,551 times
Reputation: 14

Advertisements

Interesting topic...

What about buying a brand new home? Do we need an agent? Someone told me that an agent practically does a very limited on a brand new transaction. Does a builder has a specific bucket for agent's commission? Or is it come from the home price (the buyer will be able to negotiate to lower price)? since the commision has to come from somewhere right?

Any thought?

One of my friends bought an inventory home three years back in Katy, TX... asking price was 290K and they ended up getting it for $250K. Builder paid all closing cost. The builder sales office mentioned that because my friend didn't bring an agent and the builder was able to put the commission money toward the house.
Reply With Quote Quick reply to this message

 
Old 07-19-2012, 12:25 PM
 
177 posts, read 236,487 times
Reputation: 225
Derekv,
You may think that you saved money, but what you don't realize is realtors many times get their client closing cost assistance from the seller. Had you used an agent, you would know that. So I hate to break it to you, but you are quite misinformed on the process
Reply With Quote Quick reply to this message
 
Old 07-19-2012, 12:33 PM
 
Location: DFW - Coppell / Las Colinas
30,002 posts, read 34,648,657 times
Reputation: 36024
Quote:
Originally Posted by mandm177 View Post
Ive heard the term buyer's agent, but how does that differ from a real estate agent, if any?
We RE Agents are all licensed by the state of TX. We agents work with buyers and we work with sellers. My business is about equally about 50% each

When I list a home for sale and represent the seller I am the "Listing Agent". When I have a buyer that I represent I'm the "Buyers Agent".

Almost all home sales has 2 agents involved. One who lists the house and one who brings the buyer.

Ocassionally 1 agent will represent both parties but thats a different story and not that common in a large area like DFW.
Reply With Quote Quick reply to this message
 
Old 07-19-2012, 12:36 PM
 
305 posts, read 1,113,833 times
Reputation: 297
If you are interested, here is a link to the TREC website which has the most commonly used real estate forms:

TREC - Contract Forms, Addenda, Notices
Reply With Quote Quick reply to this message
 
Old 07-19-2012, 02:25 PM
 
Location: Mostly in my head
19,651 posts, read 53,649,862 times
Reputation: 18605
Builders hardly ever discount the price of a house (maybe back when the market plunged downward they did just to get out from under carrying a house), what they do is give you "free" upgrades. My son's agent went periodically to view the house as it was built and sent him photos of the different stages. She had gone to the design center with them to advise on what was expected in that price range in Dallas, what were popular options, etc. She knows tons of people like inspectors, HVAC, plumbers, etc. She is now my buyer's agent as I look.
Reply With Quote Quick reply to this message
 
Old 07-19-2012, 02:44 PM
 
27 posts, read 90,869 times
Reputation: 20
Quote:
Originally Posted by gogo542 View Post
Interesting topic...

What about buying a brand new home? Do we need an agent? Someone told me that an agent practically does a very limited on a brand new transaction. Does a builder has a specific bucket for agent's commission? Or is it come from the home price (the buyer will be able to negotiate to lower price)? since the commision has to come from somewhere right?

Any thought?

One of my friends bought an inventory home three years back in Katy, TX... asking price was 290K and they ended up getting it for $250K. Builder paid all closing cost. The builder sales office mentioned that because my friend didn't bring an agent and the builder was able to put the commission money toward the house.
I believe that practice now is actually illegal. Typically, the buyer's agent fee is figured into the cost to build the home, and if a buyer does not have representation, the sales associate for the builder may get an extra bonus. I'm not a realtor.
Reply With Quote Quick reply to this message
 
Old 07-19-2012, 04:13 PM
 
301 posts, read 400,955 times
Reputation: 503
I have gone both ways and if you are hands on you can do a better job working on your own behalf. At some point agents become conflicted and there is a conflict of interest, though most would deny it, of course. I was the one who found over charges on my settlement agreement, not my agent. Having an agent makes you lazy, thinking someone has your best interest and that's not true. Don't agents always say now is the time to buy? They told me that when interest rates were at 11 percent too. And they would say the same if it was 30 percent. I used an agent last time, and at some point I couldn't tell if she was working for me or the builder.
Reply With Quote Quick reply to this message
 
Old 07-19-2012, 05:06 PM
 
186 posts, read 357,492 times
Reputation: 141
You can buy without an agent if you have an average IQ, know your market and did your homework. Whatever any body says, all commission and fee are included in the purchase price that goes out of buyer's pocket. All it takes is a good inspector, appraiser, flat fee real estate lawyer and you are good to go for just $1000 or less compared to 3% of purchase price. You do need to negotiate with the seller or builder to get a price 2.5- 3% below what they would accept from a buyer with an agent. In my experience only 3% buyer's agents are worth 3% commission.
Reply With Quote Quick reply to this message
 
Old 07-19-2012, 05:44 PM
 
177 posts, read 236,487 times
Reputation: 225
If all commission is "included" then it would make even more sense to use what you pay for then wouldn't it?
Reply With Quote Quick reply to this message
 
Old 07-19-2012, 07:09 PM
 
186 posts, read 357,492 times
Reputation: 141
Wrong! It's included only when you have a buyer's agent or are gullible enough to not ask for a deduction for cutting down seller's expense by keeping buyer's agent out of the equation. If seller/seller's agent understands that there is no buyer's agent to be paid then they can deduct that expense from the price and seal the deal. Seller could care less if they have to pay 3% to buyer or his agent as long as they can sell the property. No loss to seller but significant saving for the buyer though sellers agents rather gulp buyer's agent fee if there isn't any involved.
Reply With Quote Quick reply to this message
Please register to post and access all features of our very popular forum. It is free and quick. Over $68,000 in prizes has already been given out to active posters on our forum. Additional giveaways are planned.

Detailed information about all U.S. cities, counties, and zip codes on our site: City-data.com.


Reply
Please update this thread with any new information or opinions. This open thread is still read by thousands of people, so we encourage all additional points of view.

Quick Reply
Message:

Over $104,000 in prizes was already given out to active posters on our forum and additional giveaways are planned!

Go Back   City-Data Forum > General Forums > Real Estate
Similar Threads
Follow City-Data.com founder on our Forum or

All times are GMT -6.

2005-2018, Advameg, Inc.

City-Data.com - Archive 1, 2, 3, 4, 5, 6, 7, 8, 9, 10, 11, 12, 13, 14, 15, 16, 17, 18, 19, 20, 21, 22, 23, 24, 25, 26, 27, 28, 29, 30, 31, 32, 33, 34, 35 - Top