Real Estate agent for a newly built home (Orlando: flat fee, sale)

[cichlid]

I am considering buying a home from the builder directly. Are there any real estate agents willing to give a cash back or any financial incentives? Any advantages in using a real estate agent instead of dealing with the builder directly?

Thanks.

[BPevehouse]

Cichlid, is this for a primary residence or a secondary home?
Are you local to the area currently or moving in?
Where is the home that is to be built, located?

I am willing to hear you out, on your expectations but I will admit I have never done a cash back or similar deal in years. This includes deals I have done for family.
In my experience both parties are often left feeling short changed. But as I said, I would be willing to discuss it with you.
If you elect to go through with the purchase, even without an agent.... best of luck to you. Most of the time with new construction you do not run into issues, but its for the 10-15% of the times that you do, you may wish you had an experienced set of eyes beside you.

[annerk]

You'd be better off negotiating a 3% discount directly with the builder (ask for upgrades instead of actual cash back) and use a lawyer and home inspector to protect your interests.

[Broker Dave]

Times are different builders are offering deals from TV's to down payment assistance but to give more is controlled by mortgage loan providers.

Builders will tell you they can do this or that but not this/that combined, again the mortgage prevents them doing this.

If you need a rebate and are buying in the Orlando Metro area feel free to contact me.

Click on Broker Dave just above and send me a direct message.

You ask if using a Realtor has any advantages?

When you walk into the door with a full time Realtor that takes their profession serious they will bring knowledge to the transaction and watch your back checking out everything.

I offer more that just real estate knowledge I also have hands on experience with construction both new and existing as a past owner installer of a home automation and home theaters business. I have attended home theater design, calibration and installation classes at LucusFilms SkyWalker Ranch located in Marin County, California on 2 separate occasions. I have installed systems starting at the home planning stages with area architects through to installing in existing homes with the oldest being built in 1930 with plaster walls.

Hope this helps,




Moderator's, because of the way this question was asked I answered with the information above. I try to follow the rules as close as possible but I feel the poster is asking a question that requires basic info above.

[annerk]

Depending on the down payment and type of mortgage there may or may not be a problem with builder rebates in cash or upgrades. Your mortgage broker will be far more able to advise on this than a real estate agent.

Again, in this type of transaction a lawyer and home inspector are more important than a Realtor.

[Broker Dave]

Most home buyers don't have extra money laying around to pay attorneys and inspectors so short of going into a builder alone and not use either having a knowledgeable Realtor helps.

Not seen a builder offer direct rebates again for two reasons,

• Lower appraisal value in the community, they cannot write a check after the deal closes so the rebate must be shown on the HUD-1 lowering the net the builder receives and this is the sale price reported to the State of Florida and used by appraisers. Because this lower number directly affects appraisal values of other homes in the community builders would be shooting themselves in the foot.
• Mortgage criteria only allows so much builder/seller concessions.

When a builder advertises incentives they have already cleared how much they can offer with a mortgage broker.

Builders do offer either down payment assistance or home option upgrades or a mix of both but they can only offer a set amount of dollars.

This is also true when buying an existing home, the mortgage only allows so much in seller concessions.

Hope this helps,

[annerk]

If you can't afford $400 for an attorney you can't afford to buy the house. Period! A real estate agent is NOT an attorney nor can they offer legal advice. Period! If there is a problem with a contract, a real estate agent can not offer advice, only an attorney can do that. Period!

By the way, some mortgages allow almost unlimited seller concessions. For a buyer putting 25% of their own funds down, pretty much anything goes other than straw buyer type scenarios.

If you buy a $150K house, an attorney fee represents about a quarter of 1% of the purchase price. It's the largest investment most people will ever make in their lifetime, isn't it worth protecting that investment with solid legal advice instead of relying on a Realtor and builder who both have vested interests in seeing the deal close? I'm sure you'll disagree because you have a vested interest. The attorney gets paid a flat fee whether the deal closes or not--not a commission and their only interest is protecting their client.