New build // buyer agent or no buyer agent (Round Rock: sale, chapel)

[Usa450r]

Going with a new build in Round Rock and this is my 2nd time going through the new build process. Can I negotiate a better deal if I don't use a buyers agent and thus builder doesn't need to pay him/her the 3%.

Does this 3% come from builders marketing funds?

USA

[owlman]

Pretty much every seller's contract says the seller's Realtor gets the full commission--usually 6%--and if there's a buyer's agent who is also a Realtor, they get half of that. Otherwise the seller's agent hits the jackpot
If your sale is indeed structured this way and you feel you don't need the services of a full price buyer's agent, your best bet is to probably get one of those cashback discount realtors that give you a cut of their commission.

[FalconheadWest]

The Realtor pay comes from the builder's marketing budget. You will not receive a better deal without an agent. Most of the builders in the area are not offering many incentives right now, as they know they hold the advantage.

[hts]

Agreed with previous poster.

Find yourself a buyer's agent that will give you (at least) 50%/1.5% commission cash-back, preferably 2% if you can. It shouldn't be that hard (I've done it for the last 2 new builds we purchased, $600k in Chapel Hill and $730k in N Phoenix). Good luck.

[Usa450r]

How would I get this back? At closing in cash? To use for closing costs? Is this another contract between buyer and the buyers agent or just a hush hush I will give you cash back after close? Legal?

Thx

[austin0]

No one is going to be getting into hush-hush business only for one sale. You are buying once but realtors do this every day. Get an agent that can give you part of the commission (1, 1.5 or 2%) towards closing. A buyers agent agreeing to pay part of the commission towards closing is pretty legal. But your mortgage company may want sellers consent for that part and only certain parts of closing cost can be covered - not all. So, talk to your banker as well about this.

[FalconheadWest]

No, it's not hush-hush, and no it's not cash after closing. It's a rebate/credit given on the HUD-1 closing statement as your lender has to approve the credit. On FHA loans, funds can come from anywhere with a gift letter. On Conventional loans, funds have to be your own money up to 5% and then you can borrow or receive funds elsewhere. All credits/rebates have to be lender approved.

[hts]

It's not shady/under the table business. As FHW suggests, it's all outlined on the HUD-1, completely above board, perfectly legal.

[Usa450r]

Great thx!

[northatx]

Thanks OP for posting this question. I was wondering the same thing. Now how do I find a realtor who will give me back 2%?