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You can ask, but they probably won't give you one, in which case you are better off to go with one. The seller pays the commission so you have nothing to lose and at least you have some sort of representation with you.
The builders use a completely different budget to pay real estate agents. It comes out of their marketing budget. Selling one house with an agent does not offset the money saved in their marketing budget to not have an agent. So, no, you should not get a discount. Anyone can negotiate a price, and many people who negotiate without an agent think they did an awesome job when the builder took off the 3%, where in actuality, you probably could have gotten a heck of a lot more if you used an experienced agent who knows how to negotiate with builders.
Does buying a new w/o an agent mean we can get a discount since the home builder does not need to pay the agent's commission?
If you do not have an agent represent you then the listing agent will do all the paperwork and get both ends of the deal. He/She becomes a dual (or transactional) agent. The builder isn't going to get out of paying the commission, not no how, not no way.
Does buying a new w/o an agent mean we can get a discount since the home builder does not need to pay the agent's commission?
Sometimes you can get a discount, sometimes no. It depends on the builder and their budget. If you don't use a buyer agent, please hire an attorney to protect your interests.
You will have to pay for an appraiser if you are getting a loan, and it will not be your choice of an appraiser. If you are paying cash, yes, you might want to get your own appraisal, but if you are financing, it doesn't matter what your appraiser sets the value at, only the appraiser that is assigned to your case. Why pay twice?
The builders use a completely different budget to pay real estate agents. It comes out of their marketing budget. Selling one house with an agent does not offset the money saved in their marketing budget to not have an agent. So, no, you should not get a discount. Anyone can negotiate a price, and many people who negotiate without an agent think they did an awesome job when the builder took off the 3%, where in actuality, you probably could have gotten a heck of a lot more if you used an experienced agent who knows how to negotiate with builders.
This is what I was told by my Realtor on my first home purchase with a builder. Just get a good Realtor and let them work their magic on the sell price, closing costs and upgrades.
Is the house built yet? The reason I ask is if it isn't built yet make sure you get an agent that will help you throughout the construction, not just with negotiating the price.
You will have to pay for an appraiser if you are getting a loan, and it will not be your choice of an appraiser.
Funny how that works! The borrower or seller isn't the client, but they are forced to pay for it. They don't even receive any benefits per client relationship. There are tricks for a borrower, purchaser, or seller to get a really cheap (cracker jack) valuation so it will satisfy the lender's files if the borrower, purchaser, or seller wants to retain their own before the bank, lender, or AMC requests an Appraiser (or even if an appraiser is used). It could possibly save them thousands of dollars.
If you are paying cash, yes, you might want to get your own appraisal, but if you are financing, it doesn't matter what your appraiser sets the value at, only the appraiser that is assigned to your case. Why pay twice?
It always matters what the Appraiser reports the value at. What is more more important to a client is the opinion of that value. Plus, the borrower, or purchaser, or seller can dispute the appraiser's "Appraisal" assigned to the case. There will be a new public hot line according to the new federal financial reform bill, as well -- this new hot line for complaints and suggestions from the general public will help form the future of the appraisal process.
Appraisers can work with borrowers, purchasers, and sellers at discounts or even strike a deal for payments in time. It would be a business decision. The fee paid is not outrageous (appraisers do not work on a commission based on the price paid) -- the fee is a flat fee which is negotiable.
Why pay twice? Because Appraisal for mortgage loans are for different reasons, rampant fraud, the fact that that lender is the client for mortgage purposes and they are the ones who receive the benefits of it, the lending industry is known for cherry picking the unethical and incompetent, so the purchaser/seller/borrower can receive full benefits and become more knowledgeable about the real estate in question (they will know exactly what they are purchasing or financing), it may possibly save them thousands of dollars, they will be able to request full consultation so they will be able to execute their goals or planning in a more efficient manner. I believe the list can go on according to the requests.
Also, it is typical today for banks and AMCs to charge the borrower or purchaser or seller (whoever their client may be) a high fee for the appraisal and pocket half or over half of it. A good Real Estate Appraiser can tell a client how to get the most out of the Appraisal Process; financially and economically.
Thank you for asking a legitimate question, and not being rude about it. I hope I didn't come off as such, as well. No one has to retain a Real Estate Appraiser for their own benefit or protection, but it sure will help the market.
...Four months later, the Stiners and their buyer both gave up. Together, they were out $1,600 for seven appraisals. "
This couple was on the hook for cheap Appraisals totaling $1,600.00 -- hopefully, the bank paid it for them. The banks are profiting off the backs of Appraisers and the general public with regard to appraisals, so they can make money and cover their own debts in the too big to fail era. This situation is typical (we encountered the same when requested to appraise residential property). It was all about profiting off the appraisals, and covering their butts from what was going in the past prior to Appraiser Independence Laws and Rules.
The above is just a small spot on the rug compared to the overall environment, and it provides one example.
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