Buying a new home without a realtor (real estate, home builder)

[medctrguy]

I've been looking at several neighborhoods in the 300K price range and i've narrowed down my search to two. The one house i would really want to buy has a 50K promo and i can't seem to get the price lowered. The builder asked me if i was using a realtor so they can get their commission.

why would i even want to bother with a realtor when i know exactly what i want - a new home? I was wondering why can't the builder simply give me a discount instead of paying a realtor comission?? has anyone gone through this experience, what was the outcome? If i were to indeed get a realtor, i damn well expect for him to get me a way better deal than what the builder is offering, by this i mean at least an addtional 3% off! then i would feel that he/she has really earned their comission, otherwise i'm just giving them $ for work i could have done on my own.

the spec homes the builder has available have all kinds of upgrades that bring the total price and size of the house way above my comfort zone (even with huge discounts). i am very specific as to the location of the house i'd like within the neighborhood, most spec homes are not on greenbelts or i just simply do not like their location. i'd rather pick a lot that is ideal for me and have the house built - i'm really in no hurry.

[traficdogn]

welcome to texas.

on another note, I wouldn't completely ignore custom homes. Ie. you can purchase lots without a realtor, and also sign a custom home builder without a realtor.

[datacity]

I guess if you had hired a realtor from the get go, he or she could have recommended appropriate locations and builders depending on your needs, even done the leg work on any negotiations for spec homes or if you were building. Just like a resale home, they know the right areas, the right builders, the right things to check (inspections, contracts,etc..) They could act as your agent for throughout the process... i.e. earned the commission.

Note that the commission is paid by the seller, in this case the builder, not by you. Builders rely on good relations with Realtors to bring potential homeowners in. It does seem a little weird that they be paid by the builder to look out for your interest. Look at is as a marketing fee paid by the builder, just like paying a fee to be on a website or tv. I think it comes out of their marketing budget anyway?

On a side note, depending on the builder and the climate at a subdivision, you might be able to get the 3% if you do not have a realtor and will not be using one. As I said earlier, builders do not want to do this, to stay on good relations with real estate agents... but some might for a specific situation.

[Drzy]

I had a realtor I brought in at the last minute. He gave me 5/6ths of his commission, so I got the standard 2.5% back. I believe technically the builder isn't required to allow you to suddenly bring in a realtor, but I'm sure that in just about every case they'll be fine with it, especially to make the sale.

I'll DM you the name of who I used -- I highly recommend him. Let me know if you have any questions.

[kevcrawford]

Because when the *$(% hits the fan with your builder, which it does from time to time, you need someone that can jump in and knows what they're doing.

Often times peope view a Realtor as someone that just jumps in to collect a commission, but I can say from experience that there are many, many times, I or a colleague has gotten a client out of a heap of trouble or money in the building process.

There's a lot more to our jobs than what you think. Sometimes it's an easy commission, but that's incredibly rare.

Most builders don't pay commissions out of the price of the home. There's a separate account for commissions and if you don't have a Realtor, then that account stays untapped. If you're looking for someone just to jump in to get a rebate, that's your choice and I'm sure there are plenty of starving Realtors out there ready to do just that for a few hundred bucks, but if there are issues that arise with your builder or the deal, don't expect them to get you out of it or be able to assist.

[Dopo]

I tried a realtor and he tried to get me to buy houses out of the range that I told him.
I got rid of him and then he got mad because I bought a house across from an area that he showed me.
I told him: "Why didn't you show them to me, because they are in my price range"
and he said: "They are too simple and small"
In few words, he wanted me to buy what he likes (I got that impression the whole time I talked to him) and completely ignoring the only thing that I cared about = staying in my price range.

[firstclassflyer]

Originally Posted by Dopo

I tried a realtor and he tried to get me to buy houses out of the range that I told him.
I got rid of him and then he got mad because I bought a house across from an area that he showed me.
I told him: "Why didn't you show them to me, because they are in my price range"
and he said: "They are too simple and small"
In few words, he wanted me to buy what he likes (I got that impression the whole time I talked to him) and completely ignoring the only thing that I cared about = staying in my price range.

He was looking out for you regarding the resale. Now, you're stuck with a simple and small house that'll be tough to sell...let alone sell for what you paid. Should have listened.

[loves2read]

realtors often know the questions to ask that a novice home buyer does not
realtors know reputations of builders that go beyond the surface look of a model home
realtors know the law regarding what a builder is required to do regarding repairs
realtors have a frame of reference for costs/value in pricing a home
reators are a buffer between a home buyer and seller which is often very helpful

but you should understand that whether you have a realtor or not--a seller is not required to lower a price to what YOU want...

[JS1]

Originally Posted by firstclassflyer

He was looking out for you regarding the resale. Now, you're stuck with a simple and small house that'll be tough to sell...let alone sell for what you paid. Should have listened.

That is ridiculous. Dopo was looking for a house to buy in a certain price range and live in, not a house to buy for big bucks in order to sell for big bucks.

[wCat]

Originally Posted by kevcrawford

Because when the *$(% hits the fan with your builder, which it does from time to time, you need someone that can jump in and knows what they're doing.

Often times peope view a Realtor as someone that just jumps in to collect a commission, but I can say from experience that there are many, many times, I or a colleague has gotten a client out of a heap of trouble or money in the building process.

There's a lot more to our jobs than what you think. Sometimes it's an easy commission, but that's incredibly rare.

Most builders don't pay commissions out of the price of the home. There's a separate account for commissions and if you don't have a Realtor, then that account stays untapped. If you're looking for someone just to jump in to get a rebate, that's your choice and I'm sure there are plenty of starving Realtors out there ready to do just that for a few hundred bucks, but if there are issues that arise with your builder or the deal, don't expect them to get you out of it or be able to assist.

Excellent post! That's why it's important to get a GOOD realtor!