New Construction: Should I use an agent?

[Zmehappy]

Cats, nothing wrong with using your own agent in the transaction. Is the house listed on the MLS?

As a builder myself, I'm always open to outside agents bringing in sales, pleeease. The only part I don't like is when the sales staff would do all the leg work, then the buyer's agent would send in a purchase agreeement. This usually occured when the buyer claimed they didn't have an agent they were working with. Being up front that you do have an agent is kudoo's to you!

[jenluvshomes]

That last post would be incorrect and more an example of an agent not doing there job. It is quite obvious that it is hard for an agent to be present 100% of the time when there buyers are out looking. That being said at least inform your buyer to bring a card like we did so you don't have to anwser that akward question down the road. I do feel that if you have a good agent they would make every effort to appear if you got to a place and loved it and you wanted to make sure they got credit. It is funny because prior to the slow down if your agent wasn't with you tough luck and agent's got mad, now that it is slow I suppose the agents are returning the favor and steering, yes I said steering which is illegal to other communities who will play the game or have a bonus of some sort. I would second the notion that a realtor could be more affordably replaced by home inspector and a real estate attorney and would also guarantee you that you were working with someone who has been educated by a school rather than the world checking to make sure you are getting the best price and the best home. A home inspector will tell you far more for $300 than any realtor could tell you. As far as negotiating goes, that girl got that look a. because your realtor was not with you and b. because that means you can't negotiate as much out, having a realtor automatically excludes you from a potential 3% discount since the builder would not have to pay the realtor. Re-sale I say yes to a realtor, builder I say no, because cut and dry they hurt more than help. One last thing any good reputable builder would never tell you that there is less negotiating room without a realtor as that would be steering, but the fact remains that commision is paid by the builder and is part of the cost of you buying there home. I hope you have decided to at least research a real estate attorney and a home inspector before deciding to go with a realtor.

[prim2007]

I don't know what I would have done without using my agent. She helped me in the purchase of 2 new constructions. In one case, the builder did not mention any incentives (and I didn't think to ask) but when my agent referenced the other buyer incentives in the area; the builder quickly replied matching any incentives plus $5K in upgrades. I managed to get hardwood floors and granite counters out of the deal. Plus my agent was with me when I walked through my inspection using her experience to ask add'l questions about how things worked, oddities she noticed about the property, etc. We discovered things that could be a potential termite issue that the inspector almost missed. We also discovered that the code for how the water heater was installed would be changing 1 day after closing and it would costs be $1500 to bring it up to code when I tried to sell the property. My agent was able to convince the builder to change this.

I refer this agent to others all the time and am trying to see if my corporate relocation company can retain her. She's probably the exception but she saved me time and headaches on the buying and selling side (even checking on the property for me). People seem to forget that time and stress can be as valuable as money and to me it's worth the commission.

[walidm]

Interesting...How do you know the home is worth the money? The reason I ask is without a Realtor to do a CMA and help you a prepare an offer based on the historical data and local market conditions, how do you know? While the builders agent may have told you, you could save 3%, would it be worth it to have a professional who represents your best interests and may save you even more. (Or at least know the home is worth it?)

Of course you should hire an inspector, LOL....Realtors aren't inspectors, but we know a red flag when we see one!

[EDnurse]

When I wanted to sell a house back in April 2001, I wanted to hire a broker that had an office about 1 mile away from the house. The man knew the area like the palm of his hand. He wanted a 7% commission. I asked him how much would he charge me for selling the house if he represented me during my next purchase which was new construction. I already knew which house I wanted and it was more expensive than the one I was selling. The agent agreed to charge me 4% for selling my house because he'd get 3% of the sale price of the new one. All he did for me during the purchase of the new house was show up at the sales office with me. That's it. I coordinated closing dates, walk thru, etc. At any rate, I ended up saving some money by using a realtor for new construction.

I'd say, interview a few agents and ask what they ARE going to do for you if they represent you. Good agents should have information on an area such as FUTURE construction projects around the new house such as parks, schools, roads, retail, etc. A good, reputable agent knows good title companies, lenders, lawyers, etc. Having an agent represent you can make the closing a smooth process. At least, that has been my personal experience since I am not a REA.

Regarding the home inspector, I suggest you do your own research and hire someone with LOTS of experience and references. Have the inspector work for you and nobody else.

P.S. The house ended up selling during the first and only open house at full price. One of my broker's agents brought in a fully qualified buyer with outstanding credit and lots of money. We closed in fifteen days!