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So found a house that we wanted to view. Walked into the relator's office and said, we want to see this house. They took us out and we made an offer. No work really other than opening the door. May I mention that she couldn't get into the house as it was locked with no key and we found the back door open and let her in. LOL The inspection didn't go well, so backed out of the contract.
We found an open house in the area and told her we were going. She met us there, her own choice...We didn't ask her too. Decided to go with the builder and build our own home. Asked her to get the builders information and a place that we could look at a model. Well that didn't happen timely. So I went on line, found a model and a rep for the builder. Once we were down to contract talks, she sends a different rep. for the builder's name but it was too late -- already done. Contract has now been signed and she has done NOTHING!! Builder feels that we should put her name down to keep us out of trouble and she will get 3% of $200k for NOTHING!!!
I sent e-mail to realtor telling her I will put her name down but I want something SIGNIFICANT from this deal. Thoughts????
When she wrote the ofer for you, probably you signed a paper where she will represent you.
If this is the case, you are obligated and have to give her a commission.
No question about it.
Anyway, since you purchase you don't have to pay, not sure how it works for your specific case since it depends on builder.
Some realtors have special contracts with builders that come closing time will help you get some incentives and discounts come closing.
The realtor will also help you at showroom, and if things aren't going as smoothly as you'd like with your builder they can intercede. They will also help you with questions at closing that you may have never thought to ask.
It's not like NOT using a realtor you'll get that 2%. That's money the builder pays if you use a realtor or pockets if you don't. We had a similar situation, and at first I was wondering why the heck use him, but when we were getting close to the end of the build and closing he was really helpful.
Some realtors have special contracts with builders that come closing time will help you get some incentives and discounts come closing.
The realtor will also help you at showroom, and if things aren't going as smoothly as you'd like with your builder they can intercede. They will also help you with questions at closing that you may have never thought to ask.
It's not like NOT using a realtor you'll get that 2%. That's money the builder pays if you use a realtor or pockets if you don't. We had a similar situation, and at first I was wondering why the heck use him, but when we were getting close to the end of the build and closing he was really helpful.
The commission is going to the agent, paid by the broker. You had the agent get information, etc. This is enough for the builder to be obligated to pay the agent. Stiff a couple agents, the word would get around and the builders sales would fall and would hurt his business. Having good relations with the Realtors in town is very important to the builder if he wants to stay in business. You may feel the Realtor did nothing, but he/she did enough that the builder is satisfied to pay them a commission.
I know this is an old thread, and I am retired from the business I entered in 1972 and remained in it till I retired. What I said here, is important enough that buyers need to understand it, and is pertinent today.
I can tell you the fact. If you signed a representation agreement with her you are liable to her for any home she showed you or provided you information for. IF there is no agreement signed in place you can simply cut her out. And even if there is an agreement in place you can request to her broker that it be terminated New builder contracts are tough though and Id actually recommend that you use some representation even if it is her. Just make sure she handles all the inspections walk through, negotiations, etc that will come even after contract. Building a home involves a lot more than simply buying. as far as existing homes you can simply terminate (FIRE her) at any time and just be sure you dont try to buy anything she showed you first. Then you are in the clear. I have been through this exact situation in Charlotte and in Dallas both and it is frustrating. Know this though. A agency agreement is an employment contract, if you feel she is not satisfying her duties you can terminate. The broker will likely try to substitute a new agent to you, but decline and say that you dont feel the brokerage has represented you. The Agreement is with you and the brokerage not just he agent.
I do highly recommend though still that you use an agent when working with a builder. the builder owes you NO fiduciary duties and will only look out for the best interest of the builder and you will have no recourse. An agent will help here. They will do plenty of work. Just let them and insist they do. . Good luck
I can tell you the fact. If you signed a representation agreement with her you are liable to her for any home she showed you or provided you information for. IF there is no agreement signed in place you can simply cut her out. And even if there is an agreement in place you can request to her broker that it be terminated New builder contracts are tough though and Id actually recommend that you use some representation even if it is her. Just make sure she handles all the inspections walk through, negotiations, etc that will come even after contract. Building a home involves a lot more than simply buying. as far as existing homes you can simply terminate (FIRE her) at any time and just be sure you dont try to buy anything she showed you first. Then you are in the clear. I have been through this exact situation in Charlotte and in Dallas both and it is frustrating. Know this though. A agency agreement is an employment contract, if you feel she is not satisfying her duties you can terminate. The broker will likely try to substitute a new agent to you, but decline and say that you dont feel the brokerage has represented you. The Agreement is with you and the brokerage not just he agent.
I do highly recommend though still that you use an agent when working with a builder. the builder owes you NO fiduciary duties and will only look out for the best interest of the builder and you will have no recourse. An agent will help here. They will do plenty of work. Just let them and insist they do. . Good luck
I know this is an old thread, but koodos for you realizing that you need a realtor for a new build. Most people don't know or appreciate our value or what we really have to do behind the scenes.
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