When building a house (not custom) is it unwise having a realtor?

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  • #86096 Reply

      We plan to buy without realtor representation. We are moving from out of state and don’t know anyone there.

      #86097 Reply

        The ONLY reason to NOT use a buyers agent is if the seller/builder is willing to drop the purchase price by and additional 3% or more.

        I would ditch realtor representation all day long on a new build if it meant I’d save 3% ($15,000) off the purchase price.

        Trust me, nothing that realtor is going to do to facilitate the purchase of a new build is worth $15K.

        #86098 Reply

          Yes, you should have representation… especially out of state. You’re not paying the realtor anyway.

          #86099 Reply

            I’d ask the builder before visiting if they’d offer a 1.5%ish discount for no realtor.

            #86100 Reply

              Realtors are glorified sales people. If you’ve bought a lot of property and know what you’re doing, you can just work with an attorney for your legal docs.

              I had a commercial agent try to convince me to hire her and offer full price on a property. I didn’t trust her, saw red flags and heavy sales tactics, so I negotiated with the seller direct (he was also unrepresented by a realtor/broker). Long story short, I got the sales price down 28% and no one paid any realtor commission.

              And this was after that commercial realtor had recommended to me to offer full price AND pay her commission… no thanks.

              Don’t miss: My boyfriend and I are both 30 and our long-term goal is to buy land and build a small house on it

              #86101 Reply

                My experience is if you are going through a builder for a new subdivision. They will have all the plans. Realtors will just show up for 3% and on closing day.

                It didn’t help us to have a realtor. I recommend driving in the sub and talking to the other homeowners. Issues, concerns, problems, wish I knew before purchasing.

                FYI, do NOT sign on closing if any work is outstanding even if its not required by the city to get the keys.

                #86102 Reply

                  We had independent realtors and inspectors on both of our builds.

                  Both times the builders insisted that the inspections were just done so we didn’t need to do a private inspection… no surprise when things in both houses were done incorrectly and needed to be fixed. We wouldn’t have known to do this had we not had our realtor the first time suggest it.

                  Also, they seem to have a little more weight when push comes to shove during building and dealing with builders.

                  As with anything, find someone who is knowledgeable and worth having.

                  #86103 Reply

                    I never used one for buying or selling and saved a ton of $$$. They will tell you that you need their services but not everyone does.

                    #86104 Reply

                      What I did was split the commission with the realtor and applied my portion to closing costs.

                      Usually it’s an offensive thing to ask but since there isn’t much that has to be done on their end for new builds you can find some that are willing.

                      #86105 Reply

                        I used to work for a national builder. You might not benefit from having a realtor if nothing goes wrong. But on the off chance that something does happen… that realtor is the only person fighting for you. I would recommend you find a reputable realtor.

                        I have seen many people lose their deposit, appraisal issues, walk through issues, warranty issues and the list goes on. If the realtor is strong in their market then they will fight for you and have a lot more sway over the builder than you as an individual.

                        The builders know that realtors bring in the majority of their business and they will try to make them happy to earn the future business.

                        Good luck

                        Explore these too: Slowly saving for a house down payment in the next 3-5 years

                        #86106 Reply

                          In my opinion you can do it by your self. All you need is a source for the money, a contract, and someone to close the loan. People do it everyday and you may be able to negotiate a better deal.

                          It all depends on your comfort and understanding of real-estate.

                          #86107 Reply

                            Was not necessary. We bought one of the last houses in our neighborhood and our house was spec house being built. But if I was out of town I probably would.

                            Like others said you aren’t paying them so why not. In my case I don’t see what they added.

                            #86108 Reply

                              Currently in the building process (non custom) and we have a realtor. She has been on top of everything for us! We have had hiccups along the way and she is staying on top of those changes as well as scheduling our inspections along the way.

                              Could we do it, yes, but to know that I have a second set of eyes on everything takes the pressure off of me and my husband as we are busy enough.

                              An example is the builder routed plumbing incorrectly and in turn had to re-route our gas vent. This caused an issue with our ceiling height so our realtor was able to get coffered ceiling in that room to make it look intentional. This is something I never would have thought of.

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