Benefits of a buyer's RE agent for a new condo (contingencies, feedback)
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I have been keeping an eye on a new condo building's website. The condo is very similar to the kind that the sitcom "Frasier" was set in: a multi-story building with multiple units on each floor.
Their website lists each available condo space, layout design, and its price down to the exact dollar and HOA monthly fee for each unit. For example, it says for one of the units: Price: $158,760; Finished Price: $237,355.
I've never purchased a home or condo before. The price seems fixed and non-negotiable. They give the selling agent's name & number, as if I should just contact him directly without my own agent. Is it still advisable to have a buyer's agent in this situation?
What benefits are there for me to use a buyer's agent to purchase a brand new condo?
What benefits are there for me to use a buyer's agent to purchase a brand new condo?
Everything is negotiable. Except the HOA fees. If the buyers agent helps you out in just 1 thing, it will have been worth it. There is essentially no cost to you, so why not?
Everything is negotiable. Except the HOA fees. If the buyers agent helps you out in just 1 thing, it will have been worth it. There is essentially no cost to you, so why not?
Absolutely! -- The old axiom about lawyers, also applies to Real Estate representation for buyers. "He who chooses to represent himself, has a fool for a client".
I recently represented a couple buying a new home south of Denver. When we went in to negotiate the price, terms, lot, and model of the home, here is what we heard from the on-site sales manager representing the builder:
“There is no negotiation on price, earnest money or deposit of 4 percent of the purchase price. There are no contingencies. There are no “outs” in the contract for the buyer. Once you sign the contracts, there is no backing out and getting your earnest money back.”
That is not all.
He said lot premiums range from $25,000 to $100,000.
And if we don’t like those terms?
Well, there is only one lot in the first phase and if we don’t accept the terms, there are plenty of other consumers who will.
I have been keeping an eye on a new condo building's website.
Personally, I'd never buy a condo or house in an HOA that was still run by the developer. Maybe years ago, but not today. Developers are going bankrupt left and right. Imaging that you have purchased your dream highrise condo and after you have moved in, you get a notice from the association that they are having financial problems and that every owner has to pay an extra $10,000 immediately to avoid the water from being shut off or $5,000 month to keep the electricity on, including elevators. It happens.
Well, there is only one lot in the first phase and if we don’t accept the terms, there are plenty of other consumers who will.
All the terms and agreements are clearly posted for buyers to take or leave.
Quote:
If the buyers agent helps you out in just 1 thing, it will have been worth it. There is essentially no cost to you, so why not?
Is the buyer's agent fee paid completely by the seller/developer? (I've never bought real estate before: I had thought that I might pay some kind of upfront fee or back-end fee for representing me as a buyer.)
Is the buyer's agent fee paid completely by the seller/developer? (I've never bought real estate before: I had thought that I might pay some kind of upfront fee or back-end fee for representing me as a buyer.)
1. The builder pays the real estate agent's fee.
2. The builder will never give you a lower price, they will just keep the commission they did not pay.
Builders don't care about you even though you are the customer. They will only have one transaction with you.
Builders need agents to steer customers to them. They have one or more transactions with individual agents.
When builders were hungry, they would pay extra bonuses to agents. These were hidden from the buyers.
The interiors of each unsold unit in this new condo high-rise building is not completed until the buyer pays. So, right now they are essentailly just hollow rectangular boxes. After closing, it could take a long time for construction. Then when you finally move in, you still have to deal with the noise/mess from construction of other units.
The unit I was looking at is a one-bedroom. You only get one parking space. And, from what I've read, one-bedroom condos are very difficult to sell in the future. No wonder why the 2 bedroom condos start near half a million in this building!
You don't really need a realtor to represent you. Actually, it will be an early Christmas gift fot a realtor to represent you - easy money and no efford - no driving around - nothing. You brought your condo on the plate for them and ask to eat
All realtor can do is to negotiate upgrades. And you can do it yourself with the same success, trust me. Buyer realtor doesn't know magic words. And seller's agent will get paid more $$ too, so more interested in closing the deal -> more chances for you to get thatever you want for no extra charge.
Another option you have is to find a realtor who would share his/her $$ with you after closing. Many agents are willing to do so for new houses/condos since they don't do much work anyways.
By the way, there did you find this listing? I saw few web sites with new homes and there were listing agents, but they were not representing builders, and after you call them, they became buyer's agents...
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