The Buy from the Builder Myth!

Real Estate Agent with Re/Max Elite

The Buy From the Builder myth goes something like this.  Why not buy directly from the builder and cut out the realtor?  That would make sense because we would then end up saving the realtors commission.  Right?  Wrong, buying from the builder does sometimes make sense.  While the commission is an integral part of the price what makes you think the builder will come down anymore on his price because you don't use a realtor.  Let me put it this way.  Most builders have to watch their comparables for any neighborhood.  They are not going to give you the special deal you hope for and carry that loss of profit through the next 10-15 houses they build.  Would you do that?  I don't think so.  The reason the builder wants to do business without the realtor is because they are smart about the transaction.  They, simply put, can take advantage of your ignorance on costs, comparable properties and so on.  It simply doesn't make sense not to have your own professional.  It would be like representing yourself in your own murder trial.   Why put the money in the builders pocket when you can pay the same price or most of the time less, and have proper representation.  I am sure this blog post will have some people that don't agree.  However, you have to make your own decision and I would consider checking the motivation of the person you are dealing with.  If you would like answers or consultation on this or any other topic please visit www.OK HOmes or give me a call at 405-922-2968.

There are many newly constructed homes available in Moore, Norman, and Oklahoma City area.

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Scott Baker Coldwell Banker West Shell - Liberty Township, OH
Realtor Homes for Sale Cincinnati/Dayton Ohio

Yes Jason, the builder typically has built into their pricing the Realtors fee. The smart builders do because they know that normally the REALTORS® have the buyers. Why would a builder upset the REALTOR® community over one transaction? Would not be smart.

Oct 06, 2010 02:29 AM #1
Jason Nedrow
Re/Max Elite - Moore, OK

Scott, thank you for your comments.  I agree "smart builders" do things that way but we are also have some builders that like to use the comment "you can save more without your realtor" to put more money in their pocket.  Granted these are not the dominant forces in our market but they are out there.   Most of the builders in the area are very receptive and professional with us and they are not the ones I am referring to.  I just feel a buyer should have proper representation to avoid the pitfalls that are before them.  I personally work with about 5 builders currently and have never had this problem with any of them.  Again, thank you for your comments.

Oct 07, 2010 03:54 AM #2
Tracy Lee Parker

Jason, I agree with you totally. I have had buyers let me sell their home but cut me out of the "new build" even when I offered a discount on two sales...doesn't make sense! I think I will use your analogy about the murder trial next time though. I know I can get my client a better deal than they can get themselves.

Oct 07, 2010 04:48 PM #3
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