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We are looking to upgrade our house and we are considering both existing homes and new construction in our area. We were casually looking up until this point, so we have not hired a realtor. We have recently gone to many builder open houses because of a recent parade of homes and have had initial casual conversations with some of them about what they do, price points, available lots, etc. At no time did any of them ask us if we had a realtor.
I would hire a realtor if we bought an existing house. However, if we want to go the new construction route, what are the pros and cons of having a realtor? What would their role be? From my limited knowledge of how new construction works (I have never gone this route), we would primarily be working with the builder, and the biggest pitfall as I understand it is making sure everything is in writing and the contract is clear. I am an attorney so I feel qualified to review the contract. I am not a real estate attorney, however, and I know that a realtor would have more specialized knowledge than I do about what is typical for such contracts. I suppose there is no harm in having a realtor in my corner, unless having a realtor is uncommon, would turn off a builder, or increase the price. Any insights would be helpful. Thank you!
I'll give you one example that I used in another post (Real Need for a realtor?)
Quote:
New home construction sales agent verbally told us that a $8000 upgrade was now included in all the homes. Four months later, we're at the pre-construction meeting and the plans do not show this structural upgrade. Sales agent denied she said anything of the sort. Guess what? Our realtor had confirmed what she said in writing via email. We got the upgrade.
Our realtor also bugged the hell out of them to get the house completed on time (saving me the work and being viewed as a PITA), found issues on the walk through that we would have missed, helped us find inspectors, and more that I'm sure I've forgotten.
Definitely hire your own realtor - even with new construction. Some of those builders that you've already visited might balk at allowing it.
BTW most of the National builders will not allow ANY changes to their contract. It's a take it or leave it proposition. (I learned that little gem from the RE attorney at my long time law firm. He told me to read the contract myself and call him with concerns - that paying him to read it would be a waste of my money. There WAS one piece of the contract I wasn't comfortable with, but the builder said no changes. And no, the homes were NOT flying off the shelves.)
Hire a realtor! We built a home and had a realtor - she negotiated upgrades for us, played hardball when the home didn't appraise, and saved us around 40k in the end, kept our lenders in line... The best part - the commission was paid by the builder. Had we not had our realtor... ugh. I would hate to even think of the horror. Not even joking.
Always have a buyer's agent when purchasing. Period. They get paid from the commission the seller pays. I can't think of any reason to deal with the listing agent.
I'll give you one example that I used in another post (Real Need for a realtor?)
Definitely hire your own realtor - even with new construction. Some of those builders that you've already visited might balk at allowing it.
BTW most of the National builders will not allow ANY changes to their contract. It's a take it or leave it proposition. (I learned that little gem from the RE attorney at my long time law firm. He told me to read the contract myself and call him with concerns - that paying him to read it would be a waste of my money. There WAS one piece of the contract I wasn't comfortable with, but the builder said no changes. And no, the homes were NOT flying off the shelves.)
I'm building a house now, no realtor. Met another couple at the Design Center that had a realtor. Builder pays commission. Realtor got them the option of predrywall inspection (I'm only allowed one before closing), and the house is listed at say 230k, but real price is 240k because they tack on options that are hard to negotiate. The realtor negotiated lots of room for their options. I had options too, but 5k forced, and 5k mine, vs they had 7k to play with.
It's too late to get a realtor but I would get one next time.
Why wouldn't you hire someone to be on your team and looking out for your best interests whether it be a house, land or a builders package?
It is actually the seller that pays the buyers agent so the expertise for you is technically free.
There are some builders that will not work with agents so you will be on your own but do hire your own real estate attorney.
We used a realtor as well. It was nice to have a second set of eyes to review all the documents. He negotiated more in "free" upgrades and got our water view lot for a lower price since they would not budge in other areas. He also helped us with what we should have the builder install and what we should have done after closing (some items on our list - tile backsplash in kitchen, pool, plantation shutters, crown molding, hardwood floors & custom closets). He is also arranging for our own inspector to go out and check the home during certain phases of construction.
We help people acquire real estate. Dirt with, or without, improvements.
The Buyers' agent's function generally will end at conveyance of the property.
If the OP is planning to acquire land or building lot, and then going to hire a builder to build, there is no need for an agent after acquisition of the land.
If the OP is going to go to a tract or production builder who turns over land and a completed house, a good agent can offer value from contract through construction. Might as well have an agent with some skills, because few builders will do anything but pocket the commission that would be paid to a buyers' agent.
Just pick one who has been through the process and will be there all the way. The ones who only show up to pick up their check after closing are about worthless, IMO, and there are a LOT (pun! ) of them.
We are looking to upgrade our house and we are considering both existing homes and new construction in our area. We were casually looking up until this point, so we have not hired a realtor. We have recently gone to many builder open houses because of a recent parade of homes and have had initial casual conversations with some of them about what they do, price points, available lots, etc. At no time did any of them ask us if we had a realtor.
I would hire a realtor if we bought an existing house. However, if we want to go the new construction route, what are the pros and cons of having a realtor? What would their role be? From my limited knowledge of how new construction works (I have never gone this route), we would primarily be working with the builder, and the biggest pitfall as I understand it is making sure everything is in writing and the contract is clear. I am an attorney so I feel qualified to review the contract. I am not a real estate attorney, however, and I know that a realtor would have more specialized knowledge than I do about what is typical for such contracts. I suppose there is no harm in having a realtor in my corner, unless having a realtor is uncommon, would turn off a builder, or increase the price. Any insights would be helpful. Thank you!
It depends on what type of new construction you are buying. Is it from a large builder (like a Toll Bros) or a custom house? Large builders really don't move much on price and around me, the buyer's agent gets 2%, so you would negotiate directly with the builder's rep and at the end, ask for an additional 2% off, since they don't have to pay a commission.
If it's a custom house, I'd get an agent to represent me as there is a lot more negotiating going on and you want some "independent" advice on which colors look good together, what styles are popular in the neighborhood... so find somebody that has done this in the past and is willing to go to showrooms... with you.
It depends on what type of new construction you are buying. Is it from a large builder (like a Toll Bros) or a custom house? Large builders really don't move much on price and around me, the buyer's agent gets 2%, so you would negotiate directly with the builder's rep and at the end, ask for an additional 2% off, since they don't have to pay a commission.
So wrong. So very, very wrong. Large builders (including Toll Brothers) don't move on the base price of the house, but boy, will they move on giving away options or lot premiums. Ask my realtor how.
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) of them.
