New Construction - Builder Sales Reps (incentive, 3%, agent, commissions)

[navigatn]

I'm interested in a new development and have been monitoring the sales of each new phase released. The development isn't selling too well. They're on their 7th phase release and still have standing inventory on phase 3. I've watched the pricing on these old lots steadily decline month over month.

I made the mistake of walking in to the sales office when the development first opened and signed their interest list, thereby forgoing the opportunity to bring in my agent and get the broker co-op. The old lots have been fully built out with flooring and all upgrades completed. The pricing on these lots have been finalized and the builder is currently offering $50K incentive on upgrades. Since these lots are complete, the sales rep is telling me the $50K rebate will be a rebate back to me at closing. Can they do this?

Also, can I negotiate pricing on these old lots or is pricing on new construction non-negotiable? I guess what I'm wondering is if there is an offer and counteroffer process when it comes to new construction. Also, do these builder sales agents get the normal 3% sales commission from the builder? I live in Orange County, CA if that makes a difference.

[bbronston]

Words of Wisdom: “If you don’t ask, you don’t get.”

[tsolin01]

Originally Posted by navigatn

I'm interested in a new development and have been monitoring the sales of each new phase released. The development isn't selling too well. They're on their 7th phase release and still have standing inventory on phase 3. I've watched the pricing on these old lots steadily decline month over month.

I made the mistake of walking in to the sales office when the development first opened and signed their interest list, thereby forgoing the opportunity to bring in my agent and get the broker co-op. The old lots have been fully built out with flooring and all upgrades completed. The pricing on these lots have been finalized and the builder is currently offering $50K incentive on upgrades. Since these lots are complete, the sales rep is telling me the $50K rebate will be a rebate back to me at closing. Can they do this?

Also, can I negotiate pricing on these old lots or is pricing on new construction non-negotiable? I guess what I'm wondering is if there is an offer and counteroffer process when it comes to new construction. Also, do these builder sales agents get the normal 3% sales commission from the builder? I live in Orange County, CA if that makes a difference.

If they're saying they will rebate you $50k at closing, then as long as it's in your contract, I would expect them to do it. I purchased a new build in the CA also and we had $10k rebate on upgrades which they applied at closing.

Typically builder prices are not negotiable but if these units have been sitting and the price is high for the comps in the area then I would definitely try to negotiate. They already have the $50k rebate so maybe adding more to that.

The commissions is going to depend on the builder. I think for our builder, the sales agents were on salary but they did offer commission if you brought your own agent. I don't think the buyer agents received 3% but I don't remember.

[MikeJaquish]

Do you WANT agent representation?

If so...
Quit talking to the reps until they reach out to you.
Tell them, "Gosh, I like it and all that, but if I can't have my agent, I probably need to do something else."

Or, more bluntly, "Shirley SuperDuperAgent is my agent. She can be my agent at your place, or at XYZ down the road."
(There should actually BE an XYZ....)
If they are bumbling around like you portray, they will let you bring Shirley in and will pay her.