If you are buying a home from a builder,do you need a realtor?Is it a waste of money?Or a good idea?
Yes with a condition…. The Realtor must be familiar with working the New Home market and working with Builders. The person in the Builder’s office works for the Builder, not you. His/her job is to get the most money out of your pocket. Having your own knowledgeable Realtor that represents you (Buyer’s Agent- is usually the term) and has a signed Buyer-Broker agreement to represent you, will work to get you the best deal and save you the most money. I recently had a client that was looking a new home. He had been to the development 6 months before. When we went back, we meet with the same exact Builders rep. My client said that the Builder rep’s tone and demeanor was much more agreeable this time when I was there. Why? Maybe because I know the law and what they can and can’t say or promise. I also knew how to approach the Builder rep in a positive way and ask the right questions. Bottom line: My client saved over $40,000 of the price of the home which was listed for $284K, got 6% of s
Here is my opinion based on my experience selling for a builder for 12 years. Yes it’s fine and not a bad idea, IF…. You do your homework on the builder, like make sure of their financial standing with the city, county and state. Make sure he is up to date on all his payments to sub contractors. Also call past clients to see if he has returned and made repairs when needed. While I sold for a good builder for 12 years, there are nightmare builders out there. And with the state of the economy in the new construction industry today, I’d want to know if that builder will be in business a year from now, 2 years from now and 10 years from now. Also make sure they offer you a 2-10 Warranty. It protects against structural defects for the first 10 years. And no you don’t necessarily need a Realtor to help you, but because it’s free expertise I wouldn’t suggest going without one. They know the market, the builders and can advise you professionally on how, what and when to make an offer. Best o
In my area, every decent sized builder has a Realtor sell their homes. Even the subdivisions are represented by a Realtor. The upscale subdivision here opened its own brokerage and hired Realtors to sell their homes. That is the only place these Realtors work is that subdivision. If this builder you are considering has a Realtor or an agent, you need to have one. That agent’s fiduciary responsibility is to the seller, not you. If they are selling themselves, you at least need a RE attorney to review the contracts.
There is no cost to you the buyer to be represented by a Realtor. Any commisson would be paid by the seller (Builder) The exception would be if the builder offers a discount to not use a realtor. That practice though may not be legal in your location. In any event, it is a good idea to retain a good real estate attorney to look over everything BEFORE you sign anything, and again before closing. A few dollars spent up front could save you tens of thousands down the road if the deal goes bad. Good luck!
