This will probably make my realtor mad, but... (recommendation, new agent, price)

[2bindenver]

Builders are not like McDonalds - so quality can differ both in time and in community- quality depends on the specific people building the property, not the reputation of the Builder.

You sound anything but a "slam dunk" kind of buyer.

I think you need to dial it down. You should research anything that is important to you. Your agent cannot tell you what 1. they don't know. 2. what is unconfirmed & 3. what would violate local/state national laws.

[kevcrawford]

Originally Posted by CoastieTX

With all due respect, I don't see why you empathize with the first agent. First, we are talking about an established local builder who's been around for 30 years and has an excellent reputation. And second, if this agent truly believed this builder's homes were inferior, he wouldn't have persuaded me to put an offer in on the house which was built by this same developer but was being sold by its original owner.

See what I mean? The realtors can't say enough bad things about them when the developer is selling them, but at the same time, can't say enough good things about them if they're listed for sale by an owner and their agent.

And this is the professional advice that justifies their commissions?

With all due respect, I know of builders in my area that have great public reputations because of the PR and advertising they do, but that don't pay their subs very well and build inferior products. These are in the million dollar price range and the problems don't show up for about 5 years. Those within the industry know what I know. The public is different. What you think you know and what is the truth is often far off.

If you think the builder is looking out for your best interest, good luck. Go do it on your own. You might be able to get yourself a good home, but understand that having a GOOD agent on your side is only a positive. You're not going to get any type of a discount by not using an agent. There are a ton of rolled in expenses that you'll never see when you by a home.

[Silverfall]

Originally Posted by CoastieTX

With all due respect, I don't see why you empathize with the first agent. First, we are talking about an established local builder who's been around for 30 years and has an excellent reputation. And second, if this agent truly believed this builder's homes were inferior, he wouldn't have persuaded me to put an offer in on the house which was built by this same developer but was being sold by its original owner.

See what I mean? The realtors can't say enough bad things about them when the developer is selling them, but at the same time, can't say enough good things about them if they're listed for sale by an owner and their agent.

And this is the professional advice that justifies their commissions?

I have seen some builders have crappy quality and then improve it over the years, and others go the opposite way. The quality of the subcontractors is very important and that can change over time.

Yes, I have told clients that a specific builder used to have good quality, but has been having quality issues lately. Just because they have been around for a while doesn't mean that they are good. We have lots of average builders out here that have been around for a while, and we have a huge subdivision going in right now from a large national builder with really crappy quality. I mean it took me over 2 minutes to get the door locked after a showing one time as the frame was so out of plumb.

I may walk through another home that doesn't have that obvious of an issue. You BET that I will share with my buyers that the builder has some quality problems. That IS my professional knowledge that you seeking, isn't it?

Also, many builders when faced with lawsuits over defects correct the problems AS LONG AS the homeowner agrees to complete silence about the defects. I am speaking from PERSONAL experience here. Just because you haven't heard about it in the newspaper, doesn't mean it doesn't exist.

[gentlearts]

If you don't think she's providing the services you require, then cut her loose. However, I believe you have an obligation to pay her for this property, or any other one you saw after you hired her. You have an obligation to be honorable.

[MMullin]

Coastie - I understand your feelings as I have worked with dozens of Realtors in my career. Just like any other industry (yours included) there are great ones, so so ones, and bad ones.

Here's the problem - you had an opportunity and responsibility to chose a great Realtor to partner with and instead you chose someone you don't respect. You could have "fired" this Realtor at any time and in hindsight that would have been the ethical thing to do. "Hey Mr./Mrs. Realtor, I really don't think we're a good fit. I'm going to do this on my own or find someone else to work with." That would have been the ethical thing to do.

Instead, you chose to continue spending your Realtor's time (albeit less than you'd like) and now that you have found a property you decide to "fire" them. The timing seems kind of suspicious.

That the builder is willing to cut you a better deal if you ditch your Realtor is indicative that they are NOT a reputable builder.

The good news is that it's unlikely anyone is going to go to the trouble to file suit over a commission (in my opinion anyway). The bad news is that you have a tough choice to make - whether to be ethical and get your Realtor paid or not.

Am I saying your Realtor deserves the compensation? No. I'm saying you chose to "hire" them by virtue of accepting their assistance on any level and you had a choice to "fire" them when you felt you were not getting adequate service. From your post it is clear you felt this way long before the offer on the new home.

[Brandon Hoffman]

Originally Posted by CoastieTX

With all due respect, I don't see why you empathize with the first agent. First, we are talking about an established local builder who's been around for 30 years and has an excellent reputation. And second, if this agent truly believed this builder's homes were inferior, he wouldn't have persuaded me to put an offer in on the house which was built by this same developer but was being sold by its original owner.

See what I mean? The realtors can't say enough bad things about them when the developer is selling them, but at the same time, can't say enough good things about them if they're listed for sale by an owner and their agent.

And this is the professional advice that justifies their commissions?

Understand before you read my post I don't have a side in this one but if 2 separate Realtors from 2 different companies are leery of a builder it may merit some concern. There is a builder here in my area that I know builds cheap, poorly constructed home. I can't exactly say that to clients though in case they want to buy one though but I do encourage to look at other options. How long a builder has been in business has nothing to do with the quality of home but rather how good they are at running a business and making a profit off of homes sold.

Sometimes they build good homes in a neighborhood and you with a good neighborhood built by a bad builder overall. Just pointing out something to consider. Best of luck and hope you get the perfect home.

[MMullin]

Coastie - I owe you an apology. Whey I typed my opinion on the subject I had only seen your initial question - I did not realize you had typed additional info into the thread. My mistake.

If you are comfortable with the home builder then you might be ok without representaion. But that's the point though, you have no represenation when buying a new home withour your own Realtor.

I'd recommend going back to the interview process for a new buyer's agent before you look for anymore homes. Ask your co-workers or friends for a referral - and you don't want their "uncle" that does real estate part time.

Take your complaints from this thread and copy them into a Word document so that you can show the new Realtor what your expectations are.

You'll find a good one.

[lknhomesbymichelle]

Before I became a real estate agent, I found a home with a so called "reputable builder". He had a smoothe tongue and I felt as though I could trust him. Luckily I was smart enough to use an agent (most new homes have a hidden fee in them to cover the cost of a referral fee to an agent - you get charged that fee if you have an agent or not - so it's best to always have one). Anyway as we were undergoing the whole constuction process we had found out that the builder had lied to us on more than one occasion. It became a he said - she said thing until my realtor referred back to notes that proved us right. We would have gotten a bad deal if it were not for the realtor. Sure there are realtors out there who are only in it to make a buck - but a majority are there to protect you and really want to see you get what you want. If you were to cut out your agent - you would get what you deserve.

[chaz longue]

Originally Posted by CoastieTX

I'm a first time home buyer and have a buyer's agent I've been working with for about a month. In that time, we've gone out twice to look at a few homes. I mention this to show my agent has not invested a great deal of time and effort into me at this point.

Here's what I'm thinking of doing:

I want to buy a new home being offered by a developer and leave my agent completely out of this. My agent and I already wrote an offer for the house, the developer countered, and we withdrew - but I'm still interested in the house, especially at a lower price with no sales commission involved.

Why would I do such a thing?

1. I found the house, not my realtor. She never even mentioned these homes to me even though they were the right price, right location, and right floor plan.

2. She has not offered any valuable feedback about the house; in fact, I think she's been dishonest in her comparisons with other homes we've seen.

3. I mentioned that a new road was being planned behind the property and obviously wanted to know more about it. She did absolutely nothing; I had to go to the city myself and get details about this road which could potentially affect the property value and even then, she provided no insight.

4. I certainly get the impression she would rather not deal with this developer, who refuses to pay her requested 3% commission (he's willing to pay 3% for the first $100k and then 1% after that - still over $5K).

5. I honestly think it's obscene she should collect over $5K for her "non-help," and if I can save $5k if I don't use her, why should I?

So, here's my question:

If I end up buying the house directly from the developer without involving my agent, can my agent hold me liable for her commission? I never signed a contract with her. For what it's worth, this is a very reputable local builder who has been around for quite some time. I almost feel like I can trust him more than my realtor - imagine that.

Help me understand, CoastieTX:

You refer to the agent as both a buyer's agent, and "my agent". Then you mention that you never signed a contract with her.

You're in a different state than I am, so I'm wondering - Who was this agent's CLIENT when you were working with her. You? Another party?

How do the Laws of Agency and consumer protection regulations work in your state?

Thanks,
David

[sterlinggirl]

A bit of constructive criticism for the Realtors......the way I read this thread is that you scream bloody murder if one of your colleagues doesn't do a competent job and you actively look for ways to insult the OP who should have been shown the house regardless of whether the developer paid 3% for the full amount.

What it looks like to me, is that Realtors in the area were trying to blackball the developer for cutting back on their fees, and were more interested in their commission rate than the needs of their clients.

I know that I'm less likely to hire a Realtor after reading this thread.....