Visiting Model Homes without a Realtor (to buy, dentist, builders)

[Bummer]

Originally Posted by sierraAZ

Forgot to mention something. I was told that if you really have a realtor, but don't wanna take him/her on all the trips, handing his business card or even just giving his/her name would be good enough.

Thanks, Sierra . . . my point exactly!

[sberdrow]

To anyone thinking of not using a realtor, it can be a huge financial mistake. You need them to write the contract so that you have many many many ways out. I lost 3000 dollars because I could not get out of a contract. I figured I was smart enough. One sentence could have made saved me the 3000 dollars. They usually will not mess you over if you have a realtor because they know word will get around. They are not going to cut you a deal you could not have gotten anyway. Don't use the financing offered and don't use the builders sales staff. Unless you are a legal expert on real estate.....Never ever use a realtor. BTW Im not saying that the originator of this post is trying to get out of using one, this is for everyone else that is a stupid as I was. The next house I bought had so many outs that I could have sneezed and had the contract cancelled.

My 2 cents

[sberdrow]

Originally Posted by sierraAZ

But I dont think a realtor adds any value in buying into new construction with all the data avaiable for free.

I've been reading that some people do get better deals using a realtor. I didn't... Can't say for sure if it wasn't possible or he didn't do anything about it. In my case I feel like I just dropped some easy money in his lap. I had used him before when buying a resale house. Didn't visit a lot of houses then, so I can't tell if he'd be very responsive to that. Otherwise he was quite knowledgeable and the process went smoothly. No advantage in using him in the new construction deal, though. Well, since you don't pay for it, it doesn't matter much, but I still have doubts in my mind that I could do better had I used somebody else.

In my experience, some of DR Horton sales folks are quite the sticklers with that rule, but I wouldn't buy from them anyway after seeing their 5 legal-size pages list of upgrades. In my book, they're not much better than KB.

At least use a realtor to do the paperwork for you...some charge a small fee. It can really protect you. As far as getting a savings....negotiate hard or walk away.

[sierraAZ]

Originally Posted by sberdrow

At least use a realtor to do the paperwork for you...some charge a small fee. It can really protect you. As far as getting a savings....negotiate hard or walk away.

I did use a realtor. Just said I didn't see any advantage in doing that. It might be different with custom builders, but I don't think any production builder would allow anything other than their standard contracts...

[sberdrow]

Originally Posted by sierraAZ

I did use a realtor. Just said I didn't see any advantage in doing that. It might be different with custom builders, but I don't think any production builder would allow anything other than their standard contracts...

read those contracts......totally geared to the advantage of the seller. I would not want to pay a real estate fee myself...but as a buyer, its free to me. The only glitch I can see is if the realtor gets a higher payout by one builder over another and does not have your best interest in mind. Thar t can happen. I don't need the realtor to tell me that the house is nice....I need them to keep me from getting screwed. You can usually tell if your buyers agent is really working for you or not. Never sign a buyers agent agreement, then you cant fire them. Just find the home, get a realtor or a legal expert and use them to make sure you have multiple ways out. Just try and get that deposit back if you have legally signed it away...just try..Its possible I guess if you have a major sob story, but in the end, they just made 2-3000 dollars that you worked very hard for. It happens all the time. like I said, I got clobbered in Austin. I could not even use the excuse that I could not get a loan because they WERE the bank, and damn if I qualified the same day I asked for my money back. I had no one to blame, I signed away almost every right I had to get my money back....I signed and signed and signed. It must have been 10 or more pages, then I wrote my check. I then bragged to my wife in the car that I took care of business. I might as well have taken the money to vegas and bet on red to win. You know you don't have to attend the school of hard knocks.

[NYtoAZ2007]

We don't necessarily feel we need the realtor, but we're still not sure if we're going to buy new (spec), pre-owned, or build. So, if I have her take us around to a bunch of pre-owned homes (because I do believe that WE want a realtor and would benefit from a realtor in that situation), but then decide that we want to buy from a builder, I would like her to still make some money for the time she has invested in us, the buyers. I'm in agreement with many posters that in many cases the realtor doesn't add any value to the experience when dealing with builders.

In response to the comments about leaving your realtor's business card at the sales office: since the rule posted on most doors is 'your agent must accompany you on your 1st visit'...I'm sure that there are some that would take the business cards and others that would say that doesn't meet the requirement.

I was really looking for an understanding of WHY they have the rule. I'm glad I posted my question because ALL of the replies have been educational.

[Axiom]

Originally Posted by sberdrow

To anyone thinking of not using a realtor, it can be a huge financial mistake. You need them to write the contract so that you have many many many ways out. I lost 3000 dollars because I could not get out of a contract. I figured I was smart enough. One sentence could have made saved me the 3000 dollars.

I don't know if it will make you feel any better or not... but I really doubt that having a realtor would have helped. As has been mentioned; builders have their own contracts (which are VERY seller friendly) Maybe your realtor could have pointed this out, but I doubt the bulder would have accepted changes or modifications anyway.

We registered the realtor we were working with at any new home communities we looked at last time we were house hunting (never had a problem with them accepting her business card, even though it stated RE agents must be present on the 1st visit) just because she showed us many, many homes, so we felt we owed her something and we didn't want her to be cut out completely should we decide to go with new construction.

[srundio]

OK- I can't stay out of this any longer...

The WHY boils down to the fact that the builder is paying the Realtor to bring in a buyer-not to have the buyer do all the work and then pay another Realtor. There is so much more that your Realtor can do than just come along for the ride as you narrow things down. In fact, they can help narrow it down without you having to drive around in the heat. There is a reason that the contract is as long as it is, too. ;-) I would encourage you to let her do her job and make sure she is compensated properly.

BTW...most Realtors worth their salt aren't desperate for business in this market. In fact, the opposite is true in most cases.

[sberdrow]

Originally Posted by Axiom

I don't know if it will make you feel any better or not... but I really doubt that having a realtor would have helped. As has been mentioned; builders have their own contracts (which are VERY seller friendly) Maybe your realtor could have pointed this out, but I doubt the bulder would have accepted changes or modifications anyway.

We registered the realtor we were working with at any new home communities we looked at last time we were house hunting (never had a problem with them accepting her business card, even though it stated RE agents must be present on the 1st visit) just because she showed us many, many homes, so we felt we owed her something and we didn't want her to be cut out completely should we decide to go with new construction.

The next home home we built, I did use a realtor and we did put many outs in the contract. As long as its not coming out of your pocket, what do you have to loose. But I give up.....I have nothing to gain if you listen to me anyway. Have a nice day everone.

[SMG]

Originally Posted by Axiom

I don't know if it will make you feel any better or not... but I really doubt that having a realtor would have helped. As has been mentioned; builders have their own contracts (which are VERY seller friendly) Maybe your realtor could have pointed this out, but I doubt the bulder would have accepted changes or modifications anyway.

We registered the realtor we were working with at any new home communities we looked at last time we were house hunting (never had a problem with them accepting her business card, even though it stated RE agents must be present on the 1st visit) just because she showed us many, many homes, so we felt we owed her something and we didn't want her to be cut out completely should we decide to go with new construction.

I recently represented a client in a new build. I helped him quite a bit actually. I did get him more assistance on his closing fees, when timelines were not getting met I made the phone calls and did the leg work so he could concentrate on his job, I attneded his closing and looked his docs over very carefully and interpreted them for him. Basically, I represented him and looked out for his best interests which the builder is NOT doing. I minimized his heartburn and anxiety levels and made certain he was not getting screwed...all at no cost to him. I ddid not "give money back" as I am not a member of that club, but I did get him a very nice gift. He was very happy and has sent clients my way. Want to go it on your own for the same price...go ahead. I don't get it, but it is not my business.