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Old 02-24-2019, 01:12 PM
 
289 posts, read 433,258 times
Reputation: 129

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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. The quoted monthly is higher than how much they quoted us iniatially. Now, we want to hire a Real Estate Agent to represent us as we dont feel comfortable signing documents on our own. Can we still hire one? Please give us some advice. Thanks.
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Old 02-24-2019, 02:27 PM
 
982 posts, read 628,539 times
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Have your real estate attorney look over the documents.
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Old 02-24-2019, 03:28 PM
 
Location: Cary, NC
32,452 posts, read 56,724,144 times
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You can hire representation at any time.
The question is:
Will your builder compensate the agent, or will it be out of pocket expense for you?
Generally, at this point, most builders will not pay.

You are probably farther ahead to hire a real estate attorney than an agent.
You may also want to shop for money from another lender or two, to compare costs.
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Old 02-24-2019, 03:37 PM
 
Location: Northern NJ
7,920 posts, read 7,658,163 times
Reputation: 11082
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. The quoted monthly is higher than how much they quoted us iniatially. Now, we want to hire a Real Estate Agent to represent us as we dont feel comfortable signing documents on our own. Can we still hire one? Please give us some advice. Thanks.
Probably too late. Builders will pay agents that bring buyers, but only at the very beginning, usually right when you first sign in.
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Old 02-24-2019, 05:00 PM
 
289 posts, read 433,258 times
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If were not happy with the numbers/fees, can we back out with no penalty or them keeping our deposit? Thanks.
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Old 02-24-2019, 05:02 PM
 
Location: Cary, NC
32,452 posts, read 56,724,144 times
Reputation: 31202
Quote:
Originally Posted by Missganda View Post
If were not happy with the numbers/fees, can we back out with no penalty or them keeping our deposit? Thanks.
Talk to your attorney.
Give your attorney all copies of whatever you have signed, and get legal advice.
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Old 02-24-2019, 05:36 PM
 
Location: Columbia SC
8,453 posts, read 7,209,044 times
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Miss

Real estate agents are not lawyers though many like to play one. If you want the deal at the earlier arranged price and have an out, talk to the builder and say earlier rate or we are gone.
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Old 02-25-2019, 08:28 AM
 
Location: Madison, AL
1,602 posts, read 1,658,679 times
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Are you talking about signing the loan/mortgage documents or signing contract to purchase the home? They are 2 very different things.
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Old Yesterday, 02:21 PM
 
Location: Washington, DC
2,694 posts, read 1,313,393 times
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Why not shop around with the mortgage until you close and try out other banks/title companies?

A real estate agent isn't a lawyer, so you'll just be paying them money for them to do absolutely nothing.
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Old Yesterday, 03:34 PM
 
Location: Sarasota/ Bradenton - University Pkwy area
3,120 posts, read 4,436,181 times
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Quote:
Originally Posted by sonnymarkjiz View Post
Why not shop around with the mortgage until you close and try out other banks/title companies?

A real estate agent isn't a lawyer, so you'll just be paying them money for them to do absolutely nothing.



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.
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