Do I need a buyer's agent if building? (sales, homes)

[corlyjones]

Thought I'd get some opinions on this. It looks likely that we will build a Drees home in Churton Grove. We are educated and know the process for the most part - we also know the state of the economy and the incentives that should be available. Do you think our family should go about it on our own or with the aid of an agent? The pro would be they may know more about the builder/area/bargaining than we do. The obvious con is paying the fee for an agent when we could easily do this on our own. Also, if we have walked in a model and spoken to a Drees sales rep on several occasions...is it even kosher to introduce a buyer's agent into the deal?

Thanks!

[CHTransplant]

Doesn't the buyer's agent fee usually come out of a split with the listing agent - no additional cost to you?

[MikeJaquish]

Originally Posted by corlyjones

Thought I'd get some opinions on this. It looks likely that we will build a Drees home in Churton Grove. We are educated and know the process for the most part - we also know the state of the economy and the incentives that should be available. Do you think our family should go about it on our own or with the aid of an agent? The pro would be they may know more about the builder/area/bargaining than we do. The obvious con is paying the fee for an agent when we could easily do this on our own. Also, if we have walked in a model and spoken to a Drees sales rep on several occasions...is it even kosher to introduce a buyer's agent into the deal?

Thanks!

The builder will pay the buyer's agent.
You will likely find that Drees will not offer you a savings if you proceed without an agent. Not definite, but Drees prospects aggressively among the agent community. They may not want agents to think they will undercut their pricing because a buyer comes without an agent.

If you have registered without mentioning an agent, Drees will determine whether or not they will allow you to introduce an agent into the proceedings.
So, on total price, there may be little difference whether you proceed with or without an agent.
Is it "kosher?" to introduce an agent at this point? It is just fine. It may be a little awkward, but it is negotiable.

If you get resistance, and you have determined you would like someone on your side in the transaction and construction, you say, "Hi. This is my agent. I know we have this little registration question; but this is my agent. Your company has a decision to make. This person will be my agent here, or down the street at XYZ Homes. Which works better for you?"

It may be difficult to get the on-site agent to engage the buyer's agent productively, as they first built a relationship with you. You may have to reinforce that you have an agent.
Often the client lives closer to the community than the agent does, and it is so easy to stop in and chat with the on site agent.
If you and the on site agent work closely and you exclude your Buyer's agent from ongoing discussion, negotiation, and project development, they must either force their way in or stand on the sidelines and hope to show up at closing to get a check without offering much value.
You don't get as much value from an agent under those circumstances as you do when you work actively with them.

Good luck with whatever you decide to do!

[VickiR]

Great post, Mike!

The fee that the buyer's agent receives is from the seller/builder. Repeat after me, please: The fee that the buyer's agent receives is from the seller/builder. Seems we can't say it enough!

You need representation. You need a buyer's agent to find out all the incentives and the prices that the homes are selling for. You need representation IF any problems arise. WHO is on your side? The onsite agent works for the builder. You may have a very smooth transactions but if you don't, who is going to help you? The onsite agent has much experience in getting the best for the builder. Who is going to use their experience to help you? Do you have that experience?

Ask around your office, ask around your n'hood. Find someone you trust and have them give you a referral of a buyer's agent.

Ok...getting off my soapbox NOW!

Vicki

[hammester]

How extensively and how many times did you speak to an on-site sales agent? I went two times before I got a buyers agent and had no problems with it. My buyers agent also saved me around 13K of the listing price that I wouldn't' have got without her. PM me if you want her name (look one post up )

[JimmyO]

In our experience, you definitely need an agent when building, simply to help you oversee all the mundane details, and help w/ negotiations. There were some hiccups along the way for us that would have been impossible to handle on our own and still attend to our day jobs.

[dedratermi]

If the builder will give you a discount over and above their best deal for not bringing an agent, then I would take it - it seems that you are on top of things and more than capable of handling the builder yourself.

If the builder says the price is the same whether you bring an agent or not, then I would use an agent - there wouldn't be any reason not to.

[des1rees]

Speaking from experience, go with a buyer's agent. I KNOW I would not have been able to negotiate as much as we did without him. Just make the right decision and pick the right person...

[leighbhe]

Excellent and informative posts by Mike and Vicki! I completely agree with them, get an agent, it is in your best interest.

I had a friend and her parents decided to buy a new construction home and they went into a contract without an agent. Everything seemed to go along well, until they got into some difficulties. They were buying this home from a large production builder, etc. They had trouble with the cabinets in the kitchen, then closets were not being put in the right places, etc. They called me and asked me to help them talk to the on site agent.

There was nothing I could do for them. The process was already done, the contracts signed, and they had to deal with the on site agent for the issues. In the end, they regretted not having an agent.

Bottom line is a buyer's agent doesn't cost the buyer a thing, and really is a person who is looking out for the buyer's needs exclusively.

Leigh

[corlyjones]

I love this forum! Thanks for the posts...calling my buying agent now =)