What if I use a real estate agent for new home builder on contract?
Posted on January 24th, 2010 in Renting & Real Estate | 3 Comments »
simmsdanjen asked:
We are in the process of writing a contract / signing a contract on a new home, from a decent size builder. I have heard a good tactic is to go in with a real estate agent I trust, and then have an agreement to split some of the profit with the agent, since as the buyer the price of the home wouldn't increase, but the seller (builder) would be out 5% or so of the home cost. Can someone confirm what an agent would get going into this contract with me (house is in IL and worth $307K)? Also, if I asked the builders in advance if they could make it worth my wild to NOT come in with an agent on the contract, what do you think is fair to ask them to do for me? Example I am thinking is to have them come down on the price of the home by 5K, or ask for them to stay at 307K, but throw in 5K in options free. Thoughts?
Thermage Before and After
We are in the process of writing a contract / signing a contract on a new home, from a decent size builder. I have heard a good tactic is to go in with a real estate agent I trust, and then have an agreement to split some of the profit with the agent, since as the buyer the price of the home wouldn't increase, but the seller (builder) would be out 5% or so of the home cost. Can someone confirm what an agent would get going into this contract with me (house is in IL and worth $307K)? Also, if I asked the builders in advance if they could make it worth my wild to NOT come in with an agent on the contract, what do you think is fair to ask them to do for me? Example I am thinking is to have them come down on the price of the home by 5K, or ask for them to stay at 307K, but throw in 5K in options free. Thoughts?
Thermage Before and After
3 Responses
Thermage Under Eye Bags
Always use an Agent you trust and a Broker is even better (he is the boss).
The housing tract does not want you to use an Agent and they in many cases do not want to pay them a fee. But it is for your protection to have someone with much knowledge to review the contracts.
You can hire a Buyers Agent to help you through the contracts. You pay them a flat rate fee, generally $500 or so.
They will make sure you understand all the paperwork and that it is only in your best interest.
The builders agent wants what is best for his client, the builder.
You need to review the HOA’s, and CC&R’s too. Find out about all warranties, and insurance costs.
Work with a Broker or Agent, it is worth it in the end.
Boston Mass Real Estate
“Decent size” builders don’t get that way by being stupid. If you’ve already contacted the builder, he has no obligation to pay an “agent.” To collect a commission, brokers have to “register” with a builder BEFORE they bring or send the client in.
If you want another 5k in options, just ask for them. They’ll only cost him about half that much & you’re more likely to get that than a 5k rebate.
BTW, the house is not “worth” 307k. That’s just the builder’s price. “Worth” is subjective. The house may be “worth” 307k or maybe not, or maybe more, to you. It’s worth nothing to me, because I don’t wanna live in IL. Prices for new homes in that price class are softening; how much depends on location.
Palmer Ranch Sarasota
The Real Estate agent can do a couple of things for you in this transaction:
Pros:
(1) provide legal advice on the real estate transactionand make sure all forms are acceptable to you the buyer for signature
(2) since the housing market is shifting they can probably negotiate the price down but you can do this also on your own
Cons:
(1) Real Estate agent gets the commission on the transaction any type of deal struct outside outside of closing is improper and is grounds for dismissal and considered fraud
(2) The Real Estate agent might hurt you because the discount you would have received from the builder is miminized by the commission they are going to receive from the builder throught the transaction
Advice: Find out through a third party what pricebreaks they are giving you directly from the builder and then see if a commission is being paid. This is your number that you know the builder is willing to see it for. Then make a decision whether you want a realtor or not. It really depends on inventory and market conditions in your area.
You can also pay a Real Estate agent a fee to review your contract before you sign. Ask the builder to let you take the contract home. If they do not let you proceed with CAUTION!