Looking to buy an inventory new construction home. Should I get an agent?
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Should I get an agent to buy an inventory new construction home?
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Last: 9 days ago by Heineken-Ashi
Yes or no. Ok maybe. How about you share some who you are first. Say new or previous buyer. What area. What price range.
In general, I'd say the less you experience in real estate the more you need an agent.
In general, I'd say the less you experience in real estate the more you need an agent.
Absolutely yes
Get one that will rebate you part of their commission since the builder will give them 3%. I used one before that gave me 2.5% and kept 0.5%.
Get one that will rebate you part of their commission since the builder will give them 3%. I used one before that gave me 2.5% and kept 0.5%.
They'll either pay the agent the 3% (or more), or give you an equivalent in concession, upgrades, etc., They won't do both. When we bought new construction, we took a $15k design center credit. If you can find an agent that will rebate you the majority of the commission, fine. But an agent in this situation (like most situations) isn't going to add enough value to justify paying them 3%.
Possibly maybe but you really don't need one.
If you use one, ask them to contribute a portion of their commission towards closing costs, then use the difference towards the price.
Different builders can use the bucket of money Different ways. But definitely try to negotiate, esp if its move in ready.
If you use one, ask them to contribute a portion of their commission towards closing costs, then use the difference towards the price.
Different builders can use the bucket of money Different ways. But definitely try to negotiate, esp if its move in ready.
Absolutely not! Negotiate the 3% commission off the price.
Ask the builder.
Some big production builders (Perry Homes, in my experience) will pay a commission to your agent but won't give you a credit if you forgo an agent so at the end of the day if you have a buddy you want to help out then hire them as your agent.
Some big production builders (Perry Homes, in my experience) will pay a commission to your agent but won't give you a credit if you forgo an agent so at the end of the day if you have a buddy you want to help out then hire them as your agent.
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Aggie02 said:
Looking to buy an inventory new construction home. Should I get an agent?
I've helped out clients in Austin buy new builds. They were still able to get their buyer incentives from the builder as well as getting their buyer rebate from Red Pear Realty. From what I've been told by the builder sales agents, the builders usually pocket the other 3% that would've gone to the buyer's agent.
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I would assume Realtors are a big source of business for production builders. It seems like the 3% to Realtors would be a built in cost of doing business and part of the price. Alienating agents by dangling the 3% in front of a buyer for a one time transaction as opposed to agents that can bring repeat business wouldn't be wise. If you can find a good agent always be represented because no matter how nice the sales person is they work for and answer to the builder not you.
Correct. I would describe a sales office employees as Sharks in tank. First timers are at huge disadvantage with those sales persons, they work for the builder.
I am a sales consultant for a builder. Its margin in the deal just like anything else. Make an offer Sunday night or at the end of the month. I have held turning in aggressive deals to get them approved for that reason. Not every builder works exactly the same, but lots do.
I've had buyers negotiate better deals because we didn't have to pay an agent on it.
I've had realtors negotiate better deals than their clients would have without them, because they ran comps, and didn't care about holding on to their bonuses to get their client more money or were mortgage savvy or whatever.
I like working with agents most of the time and I have btsas3 right now. I would never tell a prospect in front of me that they "get a better deal" without a realtor, but the reality is that when I submit a deal that is outside of my standard incentive parameters, the first question is "do they have a realtor" because that's a significant $ amount in the bottom line.
If you are building from scratch, dont like haggling, or just feel uncomfortable with the process, a realtor can absolutely help. If you have any questions, I'm happy to answer any of them.
I've had buyers negotiate better deals because we didn't have to pay an agent on it.
I've had realtors negotiate better deals than their clients would have without them, because they ran comps, and didn't care about holding on to their bonuses to get their client more money or were mortgage savvy or whatever.
I like working with agents most of the time and I have btsas3 right now. I would never tell a prospect in front of me that they "get a better deal" without a realtor, but the reality is that when I submit a deal that is outside of my standard incentive parameters, the first question is "do they have a realtor" because that's a significant $ amount in the bottom line.
If you are building from scratch, dont like haggling, or just feel uncomfortable with the process, a realtor can absolutely help. If you have any questions, I'm happy to answer any of them.
Some builders make you use an agent/pay an agent. They know if you don't, no one else will and that'll keep agents from showing their homes.
Highland Homes does this.
Use an agent you know and get them to rebate / send you a check for part of their commission.
Highland Homes does this.
Use an agent you know and get them to rebate / send you a check for part of their commission.
That's wild, I had never heard that about them
At least that's what the sales guy told me. This was 2020.
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The purchase contract between a producton builder and a consumer is a very one sided affair. You would need a GOOD agent, not just any agent, to push back on some of the more of the one sided aspects of that contract.
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Jay@AgsReward.com said:
The purchase contract between a producton builder and a consumer is a very one sided affair. You would need a GOOD agent, not just any agent, to push back on some of the more of the one sided aspects of that contract.
I will go one step further and say you need a good, EXPERIENCED (working with builders) agent.
I would want an agent who can report to the site multiple times a week, who has knowledge of the general building process, can hold the sales office accountable should they notice things not quite up to snuff, and who can also advise and negotiate terms that most buyers have no clue about. But an inexperienced Realtor is going to get pushback from the sales office that "this is our standard contract and cant be changed", and they are just going to say "ok". Hence why you need someone who has experience pushing back and standing up for you.
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