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I currently have a realtor working with me and not the seller's realtor. Guess since I've already found my place, I'm using the realtor to help me with the paperwork and 'negotiate' with the seller. I apologize if these subsequent questions are elementary, but I'm still confused in terms of how they get paid - I know they are commission-based, but am I the one that pays it or is it the seller after the home sale is done? And if I'm the one that pays, how do I know what the commission rate is of the person - do I just ask up front?
Also in TN, would you recommend having a real estate lawyer/attorney read over the contracts and be present at closing? I've heard both extremes and for some states, it's mandatory. I know people that bought homes without realtors and/or lawyers and most common were those that just had realtors.
Finally, who all is involved at closing and is it standard across all states? I know there's an independent third party that the lender gives the big check to, but is that standard for them to be present at closing?
Any info is greatly appreciated!
Have you signed an agreement or contract with your Buyers Agent (BA)? Many BA agreements will specify the % of commission that the BA is owed at closing by the buyer. It is often assumed that the seller will pay this commission (3%) to your BA, however there are exceptions. This is important to know. If your agree to have your BA paid 3% of the sale and the listing agent only pays your BA 2%, you could be liable for paying the difference. Clarify this with the BA.
Also ask your agent if there are any circumstances where you be liable for paying the commission even if the sale does not go through. There can be hidden traps in these BA agreements.
If you are going to get a lawyer, and I would recommend you do so, have them look at the purchase contract and your BA agreement (if your agent asks you to sign one). I would not wait until closing to get a lawyer.
You are clearly feeling nervous about the process and since you are on this forum asking questions rather than asking your agent representation, that tells me you aren't 100% confident in them. As such, I would encourage you to hire an attorney to read over the documents so that you can feel comfortable with what is happening. You aren't buying a coffee pot here. This is a lot of money. Do what YOU need to do to feel comfortable and confident with your purchase.
Since the framing is just up and the siding, the faster you can get under contract, the faster you can hire a home inspector to come in and inspect during the different build stages. It will cost more money that way, but they can tell you if things are going in correctly, or my favorite...when the contractors improperly cut through support beams for things. You'll want to know that sooner rather than later.
As far as getting paid, real estate agents have a cooperative system of sharing money. This is what the MLS is. The home you are buying is listed on the MLS and the listing agent representing the builder is offering a buyer agent a certain fee if they bring them a buyer, write an offer, and get to closing. That is how buyer agents are paid most of the time. You can ask the agent directly what they are being paid by the listing agent, and if you want, you can ask them to share a copy of the MLS listing if you really feel you need to see it.
You are clearly feeling nervous about the process and since you are on this forum asking questions rather than asking your agent representation, that tells me you aren't 100% confident in them. As such, I would encourage you to hire an attorney to read over the documents so that you can feel comfortable with what is happening. You aren't buying a coffee pot here. This is a lot of money. Do what YOU need to do to feel comfortable and confident with your purchase.
Since the framing is just up and the siding, the faster you can get under contract, the faster you can hire a home inspector to come in and inspect during the different build stages. It will cost more money that way, but they can tell you if things are going in correctly, or my favorite...when the contractors improperly cut through support beams for things. You'll want to know that sooner rather than later.
As far as getting paid, real estate agents have a cooperative system of sharing money. This is what the MLS is. The home you are buying is listed on the MLS and the listing agent representing the builder is offering a buyer agent a certain fee if they bring them a buyer, write an offer, and get to closing. That is how buyer agents are paid most of the time. You can ask the agent directly what they are being paid by the listing agent, and if you want, you can ask them to share a copy of the MLS listing if you really feel you need to see it.
This is sound advice...sub-contractors are notorious for cutting corners. The builders warranty is generally for 1 year. Once it's covered up your done. The envelope of the structure is very important to properly expel and resist rain and wind. One small mishap and the results are disastrous. You might not see the damage until years later.
You are clearly feeling nervous about the process and since you are on this forum asking questions rather than asking your agent representation, that tells me you aren't 100% confident in them. As such, I would encourage you to hire an attorney to read over the documents so that you can feel comfortable with what is happening. You aren't buying a coffee pot here. This is a lot of money. Do what YOU need to do to feel comfortable and confident with your purchase.
Since the framing is just up and the siding, the faster you can get under contract, the faster you can hire a home inspector to come in and inspect during the different build stages. It will cost more money that way, but they can tell you if things are going in correctly, or my favorite...when the contractors improperly cut through support beams for things. You'll want to know that sooner rather than later.
As far as getting paid, real estate agents have a cooperative system of sharing money. This is what the MLS is. The home you are buying is listed on the MLS and the listing agent representing the builder is offering a buyer agent a certain fee if they bring them a buyer, write an offer, and get to closing. That is how buyer agents are paid most of the time. You can ask the agent directly what they are being paid by the listing agent, and if you want, you can ask them to share a copy of the MLS listing if you really feel you need to see it.
X2 - get yourself in process inspections ASAP. Don't wait for them to put the drywall in...Catching problems during construction will save YOU headache down the line. Builders that fight these inspections are doing shoddy work. A good builder knows that a smart buyer will have third party inspections done.
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