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Old 06-05-2008, 09:35 AM
 
9 posts, read 17,878 times
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I read this post in another thread and I'm really curious about what the agents and the other posters think.

Kiteno wrote in the thread about Apex, Cary & Morrisville Builders....

"Is Buyer's agent really necessary for the new home? I am not sure what buyer's agent can do if you already know what you want and builder is not flexible in their price and terms. You can search the comps easily thourgh the wake county web site and agent cannot change the contract with home builders. "

I'm really curious about this because we like a town home community and I can access the sale data from the wake.org site. The builders are very firm on price and it looks like with the incentives being offered the sale price is good compared to recent sales.

Another question is that the builders are offering a lesser price incentive only if we use their own mortgage company. Can they do that?
I don't know if I want to be tied up in every aspect of the sale by the builders.

Thanks in advance for all your responses.
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Old 06-05-2008, 09:41 AM
 
9,760 posts, read 28,734,920 times
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Quote:
Originally Posted by KytoNC View Post

"You can search the comps easily thourgh the wake county web site"

Whoever said that is misinformed. While the Wake county tax website does show the purchase price paid by the buyer it does not reflect any financial concessions that may have been made by the seller like paying for several thousands of dollars in closing costs for the buyer. The info on the tax website is not really a true comp and only part of the story.
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Old 06-05-2008, 09:49 AM
 
Location: Raleigh, NC
99 posts, read 308,662 times
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Having a buyer's agent doesn't cost the buyer anything and makes sure that someone is looking out for your best interests since the onsite agents are legally bound to look out for the best intrests of the seller. They can also pull the comps from MLS that have the concessions spelled out so you are getting the whole picture and they also will give you advice about if the builder is really firm on their pricing. The other big thing is that they can save you time by being the one that meets your inspector and answers questions from the lender or appraiser about the property.
For your second question, yes, the builder can require you use their mortgage company to give you an incentive. And quite a few production builders require that you be pre approved through their mortgage co even if you have no intention of using them.
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Old 06-05-2008, 10:37 AM
 
183 posts, read 643,577 times
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I would always recommend a buyers agent, especially since it costs you nothing. Not only that, but even if a builder is known to be firm on their pricing, a local buyers agent tends to know just how "firm" that actually is. A good example...I'm working with an agent right now and looking at a few neighborhoods, and one of them is where I had heard similar things about the builder not being flexible. My agent said that this is true....except towards the end of the month, when he knows for a fact that the builder has to sell x number of houses to stay in business, so if you catch him on a bad month, you can get a much better deal. Little things like this make a buyers agent invaluable.
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Old 06-05-2008, 11:11 AM
 
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no builder is ever firm on their prices, thats just something they say so they dont have to come down on prices. You can negotiate with any builder and get a 10-15% concession in price.
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Old 06-05-2008, 12:06 PM
 
1,489 posts, read 5,431,881 times
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Quote:
Originally Posted by dreamscapeonline View Post
no builder is ever firm on their prices, thats just something they say so they dont have to come down on prices. You can negotiate with any builder and get a 10-15% concession in price.
I wouldn't necessarily say that. 10-15% is a lot. Would you be willing to sell your home for 10-15% less than what you wan to sell it for?

"Another question is that the builders are offering a lesser price incentive only if we use their own mortgage company. Can they do that?
I don't know if I want to be tied up in every aspect of the sale by the builders."

Yes they can, but there are monetary limits to what they can tie to their lender.
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Old 06-05-2008, 12:37 PM
 
1 posts, read 2,011 times
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It is in your best interest to be represented by a buyers agent. They will protect your best interest and are qualified and knowledgable to all the legal aspects of purchasing. If you go with just the builder you are at their mercy... Put it this way
if you had a $100,000.00 tax problem would you handle it without a CPA?
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Old 06-05-2008, 03:29 PM
 
28 posts, read 104,313 times
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Quote:
Originally Posted by coltank View Post
I wouldn't necessarily say that. 10-15% is a lot. Would you be willing to sell your home for 10-15% less than what you wan to sell it for?.
me.. personally? probably not unless i was facing bankrupcy/foreclosure.. but coming from construction/development end.. i know ALL developers can be negotiated with for roughly that much, even though most people don't realize this.

Quote:
Originally Posted by coltank View Post
"Another question is that the builders are offering a lesser price incentive only if we use their own mortgage company. Can they do that?
I don't know if I want to be tied up in every aspect of the sale by the builders."

Yes they can, but there are monetary limits to what they can tie to their lender.
yes, i think seller/lender concessions are limited to 3% now anyways as mortgage companies try to break down on sub-prime lending (TRY TO)
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Old 06-05-2008, 04:45 PM
 
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So an incentive for a $200k TH would only be $6000... I have to check how much this builder is giving. I think it was a little more. So would that be illegal and would the sale price reflect the reduction or would it show sale price $200k and then they give back $6000? I'm not sure how this works

I completely understand that we as buyers will not have to pay the agent and I actually am, all for using an agent especially since we are coming in from another state. I've always valued the opinion and work the agents do.

But my question is how exactly would the agent protect my interest other than getting me a better deal? If the agent can't negotiate, to get me a better price what other services would the agent protect for me?

If by chance the builder delays in delivery of home can the agent get our escrow money back? Is that even legally possible in the Triangle area?
I've read in some posts here that people have had to forfeit their deposit if they decided to not take the house.

Again thanks for everyone's insight
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Old 06-05-2008, 04:57 PM
 
Location: Cary, NC
39,507 posts, read 68,529,022 times
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Quote:
Originally Posted by KytoNC View Post
So an incentive for a $200k TH would only be $6000... I have to check how much this builder is giving. I think it was a little more. So would that be illegal and would the sale price reflect the reduction or would it show sale price $200k and then they give back $6000? I'm not sure how this works
If it is a reduction in price, you could still get a 3% credit to closing costs.
But, it is a "Net Sum" game and the builder will know what his final proceeds need to be, and will want to realize them regardless of how the transaction is structured.
If he is concerned about undermining his sale price comps on the tax rolls, he may require it to be CC credit.

Quote:
I completely understand that we as buyers will not have to pay the agent and I actually am, all for using an agent especially since we are coming in from another state. I've always valued the opinion and work the agents do.


Quote:
But my question is how exactly would the agent protect my interest other than getting me a better deal? If the agent can't negotiate, to get me a better price what other services would the agent protect for me?
The agent may bring intangibles to the transaction that cannot be predicted, depending on how the transaction proceeds.
It may be to be on-site as often as possible, in selection of options and helping with "best bang for the buck," or in helping you if you lose confidence in the builder's people. If you lose faith in the builder's staff, the opportunity to have an advocate at your side may be quite valuable to you.

Quote:
If by chance the builder delays in delivery of home can the agent get our escrow money back? Is that even legally possible in the Triangle area?
I've read in some posts here that people have had to forfeit their deposit if they decided to not take the house.
That can happen. A good agent will help you recognize the parameters and deadlines in the contract to protect you from missing them. Terms of the contract will determine the risk to your earnest money. I have seen it refunded before.

It isn't all cut-and-dried, engraved-in-stone fact that an agent will definitely save you a bazillion bucks. But with avoidance of one or two kerfuffles, you may find that that "free" agent earned every penny they are paid.
Quote:
Again thanks for everyone's insight
De nada.
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