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Old Today, 10:43 AM
 
Location: Washington, DC
2,694 posts, read 1,313,393 times
Reputation: 1999

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Quote:
Originally Posted by Sunshine Rules View Post
Having recently spent 5 months visiting a new home construction site each week or so to take photos and put together weekly progress reports for my out of state buyers, I would have to disagree about the do nothing part. Yes, the builder did give the buyers their twice/month photos and updates, but their photos were limited in number and never seemed to cover details. The job foreman knew me by name. Then there have been other transactions where my buyers decided on builder inventory, so my time invested was substantially less. No 2 sales are ever exactly alike.

There are buyers that have purchased new construction in the past, that understand the contracts and the building process and I agree, having a buyer's agent may provide no additional benefit for them, especially if the buyer is already detail oriented and takes a hands on approach to the construction process.

There are advantages to dealing with an agent that keeps up to date on the local new construction. For instance, I know which builders are offering some nice buyer incentives on spec homes in their various new construction communities in my area. Some builders will negotiate credits towards buyers closing costs if you push them, others won't. Not all buyers are aware that all lots are not created equal, that most builders tack on "premiums" if you want a back yard with a view. The base prices on the brochures can throw buyers, they may not understand that a $225,000 home can cost $300,000 by the time the buyer selects a lot with a premium and adds in what they consider their basic upgrades and extras (at least in SW FL that holds true).

The builder's representative is just that - a person employed by the builder, who puts the builder's interests first, regardless of what they may tell you. Due to the high volume nature of new home sales, builder's agents are often paid less than a traditional commission (some are even on salary plus incentives) so it is common for builder's reps to use high pressure sales tactics with potential buyers.

Generally there is no additional cost to the buyer to have their own buyer's agent. Most builders price buyer's agent compensation into their pricing strategies and encourage buyer agents to bring customers as they recognize real estate agents as a significant source of business. On the other side of the coin, I have heard now and then of a builder that will give a buyer without agent representation an additional discount because a buyer's agent was not involved.

If you want a buyer's agent to assist you in your new construction home purchase, make sure that when you visit the model homes or sales office for the first time that you bring your agent with you and register them as your agent of record with the builder. Otherwise, most builders will refuse to pay your agent compensation at closing.


As to the specifics of this particular poster's issues, if it has to do with contracts already signed, then I agree with another agent in suggesting the OP take the contract to a local real estate attorney to review immediately -- something they should have done up front, before signing with the builder, especially when going in without your own representation. The attorney can explain in detail the specific obligations the builder and the buyers have in the contract and whether the buyer can shop outside of the builder's connected lender for financing. Different states have different laws as to what builders can and cannot do regarding financing options in which the builder has a financial interest.

Hmm interesting. You ARE a real estate agent, though, so I'm speaking from an unbiased POV. I've bought new construction twice and used a REA one time and didn't the other time and honestly, the REA did nothing that I could have done myself. Then again, I prefer to do my own research and ask a ton of questions and make sure that the price/financing is set correctly. Many buyers don't do the proper research and don't know what they're doing and how easily a builder can hike up a price on a new home build.

The REA I had ended up not doing much during the entire process, wasn't there for many of the meetings, but still expected me to pay them. Kinda a waste of time of them being there.
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Old Today, 11:06 AM
 
Location: Northern NJ
7,920 posts, read 7,658,163 times
Reputation: 11082
Quote:
Originally Posted by sonnymarkjiz View Post
Hmm interesting. You ARE a real estate agent, though, so I'm speaking from an unbiased POV. I've bought new construction twice and used a REA one time and didn't the other time and honestly, the REA did nothing that I could have done myself. Then again, I prefer to do my own research and ask a ton of questions and make sure that the price/financing is set correctly. Many buyers don't do the proper research and don't know what they're doing and how easily a builder can hike up a price on a new home build.

The REA I had ended up not doing much during the entire process, wasn't there for many of the meetings, but still expected me to pay them. Kinda a waste of time of them being there.
Yes, it does sound like you had a mediocre agent. And it does sound like paying them for doing little was a waste of money. Competence is as rare in this field as any other.

If you are a local buyer, and working with a reputable builder, and like the research and the details, and can trust AND verify on your own, then you donít need a real estate agent for purchasing new construction.

Some people are very busy, however, and donít have the time to visit the site frequently and look for trouble. Or they might be from out of the area. Or might be first timers without the knowledge to know what to look for in a home build. In which case an agent could be a good value.
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Old Today, 11:35 AM
Status: "No saccharine. No treacle." (set 10 days ago)
 
Location: The Triad (NC)
27,708 posts, read 59,946,078 times
Reputation: 30848
Quote:
Originally Posted by Missganda View Post
My husband and I looked at a new construction house without a Real Estate Agent.
We ended up liking it and we prequalified.
They sent us lian documents to sign and we noticed the numbers are not right.

Please give us some advice.
What you need is an experienced RE oriented ATTORNEY.
get one promptly.
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