Buying from homebuilder questions... (real estate, foreclosures, properties, expensive)

[Greenciti]

If I decide to buy a brand new home directly from the builder, in a newly created subdivision, do I need a realtor? Why?

What are the pros and cons of buying in a newly created subdivision?


Thanks in advance!

[desertsun41]

You do not need a Realtor to buy directly from a Builder. Without the Realtor the Builder has less commission to pay leaving you with a tiny bit of room to ask the Builder for an extra or 2.

If you have been working with a Realtor for a while then it would be the right thing to do is let your Realtor do the tranaction with you. Dont just leave them flat after they invested time in you already. Their commission is smaller then if they were to sell a standard listing anyway.

But bottom line is that it is insane to buy any home now especially a new one. As prices continue to fall, keep in mind that in Stock Trading 101 first day of class they teach to play momentum. And right now the momentum is falling faster then a fat man from a plane without a parachute.

Besides....why buy any home at retail price if there are thousands of them out there selling for 40 cents on a dollar at foreclosure?

[chet everett]

Well starters I want to address some problems with desertsun41's logic / analogies -- as Galileo demonstrated a REALLY long time ago, in the absence of other forces objects of unequal mass will fall to earth at the SAME rate: Galileo's Diluted Gravity

Fat guys and peas would BOTH fall out of an airplane and SPLAT at the same time.

In the context of REAL ESTATE this is important, because if the forces eroding home values are like gravity then EXPENSIVE homes, CHEAP house, OLD houses, NEW houses, UGLY houses, PRETTY house, DESIRABLE houses and DESPICABLE house would all SPLAT in the same way. This is simply NOT the case!

I do agree with desertsun41 that there are some TERRIFIC values in a handful of foreclosures / REO properties, but there are also LOTS of clunkers. If the OP has done has the homework to determine if there are such properties that can meet their needs AND evaluated the short term and long term value offered by the developer of the new home I STRONGLY disagree that it is "insane to buy any home now".

I fact I think that for people that can take advantage of true "below wholesale" prices that some distressed properties represent there are both short term and long term gains to be had.

That said, I have a personal bias AGAINST most new subdivisions as I know TOO MANY buyers that have been the last to get to a game of musical chairs. Developers are notorious for leaving buyers high and dry, from not fulfilling terms of the contract, to stopping work / going bankrupt with buyers deposits GONE, to making an abrupt 'down market' shift to homes built AFTER yours, there are HUNDREDS of things that can go wrong with a new subdivision. Even an excellent buyer's agent can only do so much to make suggestions to strengthen the buyer's position and a lot of "crystal ball" stuff is needed to see what the future may hold.

If you have your heart set on a new home, and you are confidant that you have made a thorough evaluation of the likely cost of an existing home I would argue that a buyer's agent MAY be a good person to have in your corner, but I would argue that the time to pick such an agent is pretty early in the process for you to get "maximum value" from such a person. If you have basically hammered the builder to their crazy lowest price, gotten the most saleable model on the most desirable lot, understand how the 'punch list' needs to be addressed and all the other details of buying from a builder then this is probably TOO LATE for a buyer's agent to do much for you. In fact if I want to "rat out" many such agreements are merely a way for a lazy, not particularly competant agent to eek out a commission off of friends and relatives that they hound...

Good Luck!

[forcedfx]

I took the plunge and bought a home from a builder. No realtor involved. I'm tired of renting and having roommates and landlords. I want something I can call my own and make my own. I'm closing on the 27th and can't wait to move in.