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Myth or Fact? A better deal on New Construction without an agent.

Reblogger Real Estate Kareer - Sara Kareer, CLHMS

Real Estate Agent with Re/Max Real Estate Centre Inc., Brokerage

January 17, 2013 08:14 PM

Buying a New Home from a Builder

This is another great post about Buyers who feel they will get a better deal when they buy directly from the Builder ... not true!

Buyers definitely need to be educated to understand that the Builder Sales Agents work directly for the Builder and do not represent the best interests of the buyers.

Buyers need to have their own agent to recommend areas and locations that will offer good value/appreication, recommend reputable builders that offer great after-sale service, review the builder contract/upgrades/closing date, etc.

I also did a Blog Post entitled: New Home Construction - Buying a New Home from a Builder? I can help!

Cheers!

Our experience over the years and still continues. Buyers are convinced that if they visit a community and register with the sales rep and purposely tell them, No I don't have an agent, that they will get a better deal.

MYTH, there are NO better deals because you do not have an agent!

I will tell you straight up, it makes NO DIFFERENCE. the base prices are set with commissions and they will not reduce their price. More people lose in this deal at the end.

The question buyers should be asking the sales rep is, If I register, will you put in writing that I don't have an agent, and offer a 3% reduction in price, or offer 3% more in upgrades at no cost.

I actually would love to see that happen so we can once and for all prove this MYTH.

I can't tell you how frustrating this is in our market. So many lost commissions to great agents because of a simple registration form. Builders are making out on this theory.

Buyers please talk to an agent about representation before going in to a community. Remember that rep is there to make a sale for the builder and they are working for the builder. Who is working for you in your best interest? Yes, it appears on the outside it's not a big deal. But the reality is, are you properly being educated about the market resale. Have you weighed out your options between new construction and resale?

What if an agent could get you relatively the same home for $50,000 less. What difference would that make on your decision? The builder rep is not going to educate on the market, they will do anything to get you into a contract with their community.

Buyers, it is a MYTH that you receive a better deal on New Construction without an agent!

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Beverly Herdman Wine Trail Homes,LLC Keller Williams Realty
Tel: 540-825-7441 | Mobile: 703-969-4280
beverly@winetrailhomes.com | www.winetrailhomes.com

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Derek Goude

Equity Oregon Real Estate - Portland, OR

On a large subdivision with homes already built I could see the truth in this point of view.

However, for a person having a home built for themselves having an agent makes little sense to me. As much as I enjoy real estate and we need to market to people that our services are always needed... we do need to be ethical and honest with our clients.

Jan 20, 2013 02:09 AM

Fred Griffin Florida Real Estate

Fred Griffin Real Estate - Tallahassee, FL

Licensed Florida Real Estate Broker

Great choice for a Reblog. People must be made aware of this.

My friend went directly through a Builder. He signed the Builder's Contract, not the Florida Realtors Contract or Board of Realtors Contract. That Builder's Contract was stacked in favor of the Builder.

Friend wanted to change houses in the same neighborhood, Builder said, "No". Friend retained an Attorney. Attorney got him out of the deal completely - but Friend lost a $20,000 deposit. And he had to pay the Lawyer!

If you don't want a Realtor, at least use an Attorney before signing!

Jan 20, 2013 02:15 AM

Karen Anne Stone

New Home Hunters of Fort Worth and Tarrant County - Fort Worth, TX

Fort Worth Real Estate

Derek in #1: I could not disagree with you more. If you are a buyer who is having a home built... it is extremely important to have a Realtor assisting you as your new home progresses from beginning to completion.

You are so funny. Just because someone disagrees with you... that makes them unethical and dishonest? Hmmm... it sounds like it should be YOU who is wearing that hat.

The more choices a buyer has to make during the building of their home... the more they need the ethical, honest and experienced help of a Realtor who specializes in new home construction.

Jan 20, 2013 02:19 AM

Fred in #2: I don't know of ANY builder in my Fort Worth market area that will sell one of their homes using a Realtor's contract. It's either use the builder's contract, or not buy the home. And of course, their contract is stacked in favor of the builder. That's one of the main reasons you need an agent to represent you.

Jan 20, 2013 02:23 AM

Real Estate Kareer - Sara Kareer, CLHMS

Re/Max Real Estate Centre Inc., Brokerage - Mississauga, ON

This Kareer Helps You Build Real Estate Wealth

Hi Derek / Fred / Karen Anne,

I think we are all in agreement -- a buyer needs their own agent when buying a new home from a builder in a subdivision. The builders agent represents the Builder not the Buyer.

As pointed out by Fred, the Builder contract is stacked in favour of the Builder and the buyer should have his/her own agent reviw the contract and provide advice.

Thanks for taking the time to comment on the post.
Cheers!

Jan 20, 2013 03:41 AM

Myth or Fact? A better deal on New Construction without an agent.

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