Buying New House: Realtor or No Realtor?

I'd go with a Trillaltor, but that's just me.

 

Realtor gets paid from the builder not you. A new home salesman is like a used car salesman- they are only selling the houses from the builder they work for so they have no incentive to look out for you in any way.

My wife is a realtor (working in Katy, NW & W Houston but has worked from Conroe to Galveston) with over 8 years experience. She is one of the top producing agents in her office (Keller Williams). Prior to home sales she worked in the accounting department for a new home builder, so she knows their tricks. She helps people with new construction all the time. Contact me through the board if you are interested in her contact information.

Last year she helped Harrisment from this board sell and buy a house.

 

Always use a Realtor. It doesn't cost you anything. Their commission comes from the seller not the buyer.

 

Could be a double edged sword..

If you go with a realtor (a good one) they should be able to go through the million page contract that you will be signing with them. That way they can tell you if the contract will put you in some sort of financial risk. Plus they may be able to negotiate with the builder based on the data they pull from comps.

but....

the builder may pay the realtor with a bonus that was meant for you..

I bought a brand new house without a realtor. I'd say just go ask questions to see if any deals are running and when they will start/end. If you buy near a holiday they usually throw in something (sprinkler system, Front load W/D). Ask them if you'll get a break if you go with their preferred Mortgage Co. (usually around 3% off of closing).

Everyone's experience is different depending on the builder just my 2 cents.

 

What? That comes across as flat-out wrong but I think maybe it's just poorly worded.

If you hire a real estate agent (Realtors are actually a big guild of real estate agents), they work for YOU. How they get paid is defined in the contract.

Most of the time there are two real estate agents- one for the buyer, one for the seller. They usually both get 3-6% from the seller... But this isn't always the case. This is all negotiable. When she was selling her house, my grandmother got taken by a shady real estate agent who took 12% commission. The contract was iron-clad so we couldn't break her out of it.

Don't assume that 'it doesn't cost you anything' because the commission comes from the seller. If you're buying from a builder, these guys are pros at selling and that cost is worked into your purchasing price.

I WOULD get a real estate agent. Get some old-school agent who has been around the block, not a young, fresh-faced kid who hasn't seen all the tricks. RRG's wife might be a good choice since she's been in the biz for a bit and worked with these guys.

There are some things you can do yourself, and there are some you pay for expertise so you're not penny rich and pound foolish.

 

When I bought a new home in 1996, Perry Homes gave me 3% in upgrades, since I did not use a realtor.

I would strongly suggest getting a thorough home inspection, before closing. Do not close until every thing on the punch list is fixed.

 

You should use a GOOD FULL TIME REALTOR...there are some out there who are part time and there are some that sux. Realtors will help you go through all the contractual agreement and give you a heads up on the tricks the builder agrents will try to run on you, things you need, and dont need. I suggest doing your homework now and BUY in December. 90% of the people in the US that are going to buy a home, already bought it this year due to $8k credit. However, I did hear (not sure) that they are extending the program to Sept. In December, builder reps will give you nice knockoff on pricing bc you will be helping their year end numbers.....good luck man

 

I guess it was poorly worded, I was trying to tellhim not to use the new home salesman and think that is "his agent" which is what a lot of people make the mistake of doing and they get taken. My wife sees people all the time who bought a new house and then a few years try to sell it only to realize they paid to much and end up taking a loss on it.

 

I'd use a realtor. the used car salesman analogy is pretty good.

Here's What I did since my realtor didn't need to do much since I already selected the house from a builder.

Had teh builder use 4% of the standard 6% commission to reduce the price. Then give my realtor the other 2%.

 

I figured. Wasn't trying to throw you under the bus- good info on your part. He should use your wife...for real estate services, anyway.

 

Don't do what I did and have your girlfriend's realtor "friend" just sign her name on the paperwork in order to collect commission for doing nothing. Because after the b**** got her 3% commission (half of which she was supposed to kick back to us because she made almost $5K for doing nothing) she disappeared and quit returning our calls or showing up to social events she knew we would be at.

 

uh, that's apart of the purchase price, so the buyer funds it...

that being said, if it was new construction, IIRC, the salesman gets his % and if there is no realtor, the price remains the same, it's not like they reduce the price...just find someone you trust/family that will split the % with you as it's apart of the purchase price and its apart of the sellers budget assuming the buyer would bring a realtor...

 

Even if it isn't new construction it is already built in. The seller will have a Realtor of their own that they've signed up with unless it is Fore Sale By Owner. Typically they charge 6%. If you don't use a Realtor and go it alone, the seller's rep gets the full 6%. If you use a Realtor they end up splitting the number.

 

ima

send codell a email and see if his wife is still in the business. If nothing else, he can probably answer most of your questions.

 

Ima,

There are realtors that will give you 1-2% cash once you close. I'll give you their contacts if you are interested.

 

When you say new construction, are you talking about pre-contruction or post-construction?

If you plan on having the house built, a realtor is pointless. A realtor is NOT free. The price for a realtor will likely not be built in, so the builder will automatically jack up the cost for the realtor. Also, a realtor is not an engineer or home inspector. You're better off hiring someone to make sure the house is being built properly. Once you sign that contract, the realtor is gone.

Just to clear up some misunderstandings, if the house is not already under contract with a Real Estate agency, then YOU are paying the commission. Only use a real agent if they find the house.

If you find the house yourself from a builder, then hire an expert such as another general contractor or home inspector to guide you through the process. Your best negotiating tool will be the competitors bid, not a real estate agent. Ask the builder about you bring a real estate agent and see if he already has that built into his overhead. If he says yes, negotiate the difference and pay a construction expert on the quality of your home, not a salesman.

 

Definitely use a realtor. It won't cost you anything and you'll be sure the builder isn't trying to screw you over.

Also, I would highly recommend Rocket Red Glare's wife when you are looking to choose a realtor. I worked with her a few years ago on the sell of my house and the purchase of a new house and I couldn't have been happier.

 

If you're building a new house and get a good realtor that is known by the builders in the area, you can get great deals on houses. I got about $15-20k in upgrades on my house and a price discount of about $10k or so because I used one of the more well-known realtors in the area. I know a couple of families on my street that bought basically the same house and paid way more because they negotiated themselves. In my case, the builder knew they could count on more business being brought in by that realtor (he had already brought them about 6 or 7 families). This was back in 2004.