New homes vs resale, when to use a realtor? (sales, real estate)

[Midpack]

Our story is not unique, so I thought there might be some good advice here.

We're planning to visit the area in August, and want to make the best use of our time. We're downsizing 60-somethings. I won't belabor how we narrowed our search, but we're looking for a $350Kish open concept, one story, energy efficient, 3+/2+ on a small lot under 2000 sqft with lots of upgrades and some storage (we've always had basements). We'd rather go with a safe mixed generation neighborhood, but we realize our spec aligns with 55+ builders. It's probably going to come down to a new home or recent build resale (10-15 years old tops, and we'd have to get very lucky on features/finishes?), possibly in a small, safe 55+ community (NOT a Del Webb mega) or a safe mixed gen neighborhood.

We don't know how to decide between new or resale without looking. We have bought new construction and resale. so we have experience with both.

My question here is really what's fair to a realtor? Using a realtor for resale is a no-brainer to me. But while I know a realtor can be beneficial when buying new, I have a hard time seeing how we won't pay an premium using a realtor buying new. While there won't be an apparent premium in 'list price,' it's very hard for me believe the builder won't more readily discount if there isn't a realtor in the equation - IOW I'm not sure I buy the quote below, it doesn't make business sense IME. I am willing to do a lot of legwork on my own, paying a premium to have someone make things easier doesn't have overriding appeal.

I apologize if this is an offensive question, it's not meant that way. Everyone is entitled to be paid for their services, but I have to look out for our bottom line too. I don't mind paying, but I don't want to pay for services I may not need.

Maybe we should just look at new developments on our own without a realtor. If we strike a deal, great. If not, I guess we contact a realtor and look at resale, and hope we don't conclude new construction was the way to go. I just wish there was a fair way to do both...

Some new-home buyers think that if they do not use an agent for their purchase, the builder will reduce the price of the home by the amount of the commission. For the most part, this cannot be further from the reality. Builders do not want to reduce their prices because it sets the comparison price for future home sales in that neighborhood. Builders instead add the commissions paid to a buyer’s agent into the marketing budgets of the homes. If a buyer goes to a new-home builder without a real estate agent, either the builder’s agent or the builder will pocket that money.

[MikeJaquish]

A good agent will be the only one on "your side" when you go to new construction communities.
No one else is, no matter how they pretend to be, and particularly if you use the builder's lender and closing attorney to collect the spiffs.

And, the 2.5%--3% cobroke commission will not benefit you. Yes, almost any builder will retain it and smile.
Leaving that money on the table and being unrepresented is fine, if you are comfortable with the process and the contracts.

If you build from a remote location, will you be onsite multiple times a week like a good buyers' agent will be?
Will you have several hundred photos taken and preserved of the process?

Some unethical builders will threaten to refuse to cooperate with a buyers agent if you bring them later.
So, if you go without, just tell them, "Yes, we have an agent," and give them a name.
If you build without an agent, and haven't wasted an agent's time, you can tell the builder that you parted ways with the agent.
This can be all done sleazily, or pretty straightforward, IMO.

[carcrazy67]

In my opinion, failure to use a "good" realtor for a new home purchase is a huge mistake. The on-site agents used by many builders are NOT on your side! A good realtor knows the ins and outs of the process as well as the builder and neighborhoods reputation and pros and cons. Many many years ago I used an on-site agent because I didn't know any better. I could write a book about the issues I encountered.
Perhaps some of the realtors on the board can provide some additional insight.

[BoBromhal]

the post you quoted is pretty darn accurate. You'd have to find a neighborhood with slow sales to get a greater discount off the prices all by yourself, no matter how much experience and skills you have as a negotiator.

By the way, I'd go with a resale. There's some nice places in Heritage that should be in your price range, just to name one neiighborhood.