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No, not to find a builder - use realtor for purchase of a new home - it's a standing inventory home in a neighborhood that has tons of lots left to build on, very large neighborhood. They have like 4-5 builders in there. The home we are interested in making an offer on I found from research, began construction in April '07. So I was just trying to figure out the wiggle room I may have w/this home, closing costs in particular.
You have asked a very broad question, as builders don't all work the same.
Some will not undercut the price in the absence of a Buyers' Agent. They know that agents bring Buyers, and they don't want the reputation of cutting the agent out. Might lose access to that buyer pool.
And, as noted above, the commission funds may come from the marketing account, and if your agent doesn't get them, they may go into further marketing.
Or not.
It isn't a slam dunk either way.
One thing for sure, if you do or don't use an agent, you should strongly consider paying a real estate attorney to review the new construction contract.
In the long run, the stuff builders insert in their contracts could cost you a whole lot more moolah than closing costs.
Many people have gotten into trouble when they have not used their own realtor when working with a builder's realtor. The builder's realtor is working for the BUILDER, not the buyer. It would be an insane mistake for the buyer to not have some sort of representation whether it be a realtor or an attorney.
So from what I'm hearing you don't think a builder would not sell his house to us w/ a good offer because we want him to cover closing due to the fact that normally its the lenders that pay this? Thanks!
So from what I'm hearing you don't think a builder would not sell his house to us w/ a good offer because we want him to cover closing due to the fact that normally its the lenders that pay this? Thanks!
I don't think that was said here at all.
First, it's not normally the lenders that pay closing costs, it's the buyers (you). Second, it depends on the builder. Some may adjust their price for you (paying closing costs in lieu of your realtor's commission), some won't. You can only make an offer and put what you want in the contract and see what happens. That still does not negate the fact that you absolutely NEED representation.
First, it's not normally the lenders that pay closing costs, it's the buyers (you). Second, it depends on the builder. Some may adjust their price for you (paying closing costs in lieu of your realtor's commission), some won't. You can only make an offer and put what you want in the contract and see what happens. That still does not negate the fact that you absolutely NEED representation.
In today's market you should not be paying closing costs. I don't care if it's a builder or a homeowner.
Representation by a realtor in not necessary when buying from a builder. Legal representation is, in most cases.
So from what I'm hearing you don't think a builder would not sell his house to us w/ a good offer because we want him to cover closing due to the fact that normally its the lenders that pay this? Thanks!
The builder will know how much he needs to take away from the closing table.
You can call divide the kitty into "incentives," "promotions," "closing costs," "lower price," whatever you want, but it is a "Net Game' and the Builder will be looking at his "Net Proceeds" when he makes a decision.
At least with an experienced agent you've got another set of eyes. The secret is to find a good agent where 20-50% of their business is new construction.
At least with an experienced agent you've got another set of eyes. The secret is to find a good agent where 20-50% of their business is new construction.
Good set of eyes for what?
--Construction Standards. I have never meet a realtor that knew anything about construction or quality workmanship. Not that none exist but there are very few realtors around that know more than the average homeowner.
--Documents. Ask any realtor about legal advice and they should and will tell you that is what attorneys are for.
--Location, Schools, Neighborhoods. Legally realtors are not allowed to give their opinion
--Negotiating. Don't get me started .
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