But, but, they told me they would save me money if I didn't use a realtor and they seemed like they would hook me up!!!!jja79 said:
They were giving him $6K and taking $12K from him
Never forget the nice guy in the model home works for the builder and doesn't GAF about you.
I'm drawn in now... What was his response to the builder after they tried to go in dry on him?jja79 said:
Let me add one more thing.
Guy I'm talking about was going to go down $6K right off the bat with the incestuous builder/lender financing they offered him and then take a payment $129/month above market for as long as he maintains that loan.
He called me because he has a buddy who's wife is a Realtor. He was bragging to them about getting $6K in closing costs from the builder/lender and the Realtor wife told him he should probably get a second opinion because it sounded to her like he was getting hosed.
Builders love to see unrepresented buyers come in the door.
Builders hold open houses for Realtors, they offer bonuses to Realtors, they offer trips to Realtors. If you think they mind paying Realtors I'd have to disagree.
I'm not a realtor, but you can't even spell "waste" so why should I take your word for realtors sucking?AGGIE WH08P said:
I used a Realtor on my new construction build about 5 years ago. She was a waist of time and didn't add anything to really be of value. I did get her to agree to split the 3% commission.
See me other thread I recently posted. I used Creekview Realty. They took 1% commission and I kept 2%.
AGGIE WH08P said:
I used a Realtor on my new construction build about 5 years ago. She was a waist of time and didn't add anything to really be of value. I did get her to agree to split the 3% commission.
See me other thread I recently posted. I used Creekview Realty. They took 1% commission and I kept 2%.
Sasappis said:Diggity said:
I'm always curious how a buyer would just blindly use the builders lender without shopping the rate.
The same folks who use dealer financing without a second thought.
What value did your flat fee realtor offer you?AGGIE WH08P said:
Woops. Grammatical error.
Yes, I did have a bad experience with my Realtor and I'm sure it might have been different with another agent.
However, if I'm selecting the floor plan, the lot, the upgrades, shopping my own rates etc, what value would a Realor offer in a new build? My market was really hot and they were not budging on price for anyone.
AggiePlaya said:
The funny thing is, you don't realize that you didn't even have to give up the 1% to the flat fee realtor if you knew what you were doing. So, for someone who acts like they don't need a realtor you still gave up 1% that you didn't need to if u did it all yourself.
I have enough experience that I can negotiate the terms and fill out the contract with the builder without having to even hire a flat fee realtor. Why didn't you do that if u don't need a realtor?
AGGIE WH08P said:
She didn't save me one penny, never followed up on the building process or really anything else. Luckily, I was clear with her up front that all the leg work was already done and I was just looking for someone to split the 3% commission with that my builder offered to buyers that had agents.
I think he is misusing "bad experience". I believe he is trying to say that he found a cheaper alternative for what he wanted.Diggity said:AGGIE WH08P said:
She didn't save me one penny, never followed up on the building process or really anything else. Luckily, I was clear with her up front that all the leg work was already done and I was just looking for someone to split the 3% commission with that my builder offered to buyers that had agents.
Sounds like you got what you asked for. Why the dissatisfaction?
Just thought it was strange that they went to an agent, said they were going to do the legwork if the agent would split their commission, then complained later that the agent didn't do more of the legwork.Quote:
I used a Realtor on my new construction build about 5 years ago. She was a waist of time and didn't add anything to really be of value. I did get her to agree to split the 3% commission.
Ah. Missed that portion. Carry-on.Diggity said:
I was referencing their earlier quote:Just thought it was strange that they went to an agent, said they were going to do the legwork if the agent would split their commission, then complained later that the agent didn't do more of the legwork.Quote:
I used a Realtor on my new construction build about 5 years ago. She was a waist of time and didn't add anything to really be of value. I did get her to agree to split the 3% commission.
IrishTxAggie said:I think he is misusing "bad experience". I believe he is trying to say that he found a cheaper alternative for what he wanted.Diggity said:AGGIE WH08P said:
She didn't save me one penny, never followed up on the building process or really anything else. Luckily, I was clear with her up front that all the leg work was already done and I was just looking for someone to split the 3% commission with that my builder offered to buyers that had agents.
Sounds like you got what you asked for. Why the dissatisfaction?
Can you offer an opinion on the link below? It looks to me like the required title company is a violation.Sasappis said:
And don't forget the builder owned title companies who help push the myths that you need/have to use the builders lender.
leanderag82 said:
I am a builder and a licensed realtor and own part of a title company and have a preferred lender we utilize. Here is my in-site.
First, if you have already visited the model/builder in question, it is established whether you have a realtor or not. Your realtor would have registered you (or accompanied you) to the models. If your realtor did that, you have a realtor. If you went without a realtor, you don't have a realtor and the builder is not going to let you add one after the fact (most builders will fire their on-site agent if they find out they are adding realtors). It is simple question of procuring cause. Did a realtor lead you to the builder? If so, they should be paid by the builder.
With regards to negotiating a better deal with, or without, a realtor the fact is with most builders it does not matter. You are probably going to get the same price regardless. Most use an average of what % of deals come through the door with a realtor. This goes into our job cost. It is not 3% and it is usually more than than 1.5%.
Builders can't take a huge $ amount off one home, because it does not have an realtor, since it would potentially kill future appraisals.
That being said, if a builder has sitting inventory and you make an offer, they will look at their job cost in figuring out if they can/will accept your offer. If you don't have a realtor, you might get a better deal at times (i.e. more builder paid CC, blinds, refrigerator, washer/dryer, etc). Your probably not going to get much off the price.
As a bulder, we love realtors who bring their clients in and let the on-site sales person do the work and get out of the way. The good top producers have done their homework and know if they get their client with right builder they can get the deal done and move on to another client. I pay realtors an average of $18k/home just for bringing the client by our models.
Some builders have their own contracts (i.e. most of the large builders). As a medium size builder we use TREC forms and amendments to clarify the deal. Most buyers and realtors prefer the TREC forms. Some of the builders contracts are one sides, so read them carefully. However, you will not get a major builder (i.e. Lennar/Horton/Pulte) to change their contract.
I have a preferred lender we use. While some builders own the lender, in my case we only use & recommend the lender because they have good rates and do what they say they are going to do. Some lenders do play games with the rates & CC so you have to do your homework. My preferred lender will pay the owners title policy cost for the buyer if they utilize them. Yet they know the rate & service must be there to get our referral as the builder. We don't get anything from the lender except good service.
I own a portion of a title company we use. It is disclosed at contract. We can't require our buyers to use the title company but 95% of them do. from what I see, they pay lower escrow fees, etc at our title company than the big title agencies. Of course the title policy fees are set and are non-negotiable.
I hope this information helps you in you home buying quest.
Great reply. This should be the end of this thread. He covered it all.
leanderag82 said:
I am a builder and a licensed realtor and own part of a title company and have a preferred lender we utilize. Here is my in-site.
First, if you have already visited the model/builder in question, it is established whether you have a realtor or not. Your realtor would have registered you (or accompanied you) to the models. If your realtor did that, you have a realtor. If you went without a realtor, you don't have a realtor and the builder is not going to let you add one after the fact (most builders will fire their on-site agent if they find out they are adding realtors). It is simple question of procuring cause. Did a realtor lead you to the builder? If so, they should be paid by the builder.
With regards to negotiating a better deal with, or without, a realtor the fact is with most builders it does not matter. You are probably going to get the same price regardless. Most use an average of what % of deals come through the door with a realtor. This goes into our job cost. It is not 3% and it is usually more than than 1.5%.
Builders can't take a huge $ amount off one home, because it does not have an realtor, since it would potentially kill future appraisals.
That being said, if a builder has sitting inventory and you make an offer, they will look at their job cost in figuring out if they can/will accept your offer. If you don't have a realtor, you might get a better deal at times (i.e. more builder paid CC, blinds, refrigerator, washer/dryer, etc). Your probably not going to get much off the price.
As a bulder, we love realtors who bring their clients in and let the on-site sales person do the work and get out of the way. The good top producers have done their homework and know if they get their client with right builder they can get the deal done and move on to another client. I pay realtors an average of $18k/home just for bringing the client by our models.
Some builders have their own contracts (i.e. most of the large builders). As a medium size builder we use TREC forms and amendments to clarify the deal. Most buyers and realtors prefer the TREC forms. Some of the builders contracts are one sides, so read them carefully. However, you will not get a major builder (i.e. Lennar/Horton/Pulte) to change their contract.
I have a preferred lender we use. While some builders own the lender, in my case we only use & recommend the lender because they have good rates and do what they say they are going to do. Some lenders do play games with the rates & CC so you have to do your homework. My preferred lender will pay the owners title policy cost for the buyer if they utilize them. Yet they know the rate & service must be there to get our referral as the builder. We don't get anything from the lender except good service.
I own a portion of a title company we use. It is disclosed at contract. We can't require our buyers to use the title company but 95% of them do. from what I see, they pay lower escrow fees, etc at our title company than the big title agencies. Of course the title policy fees are set and are non-negotiable.
I hope this information helps you in you home buying quest.
Curious... how did you do this without it being mortgage fraud? Don't you have to disclose all that on closing forms? I thought realtor rebates could only be used towards closing costs, discount points, pre-paids, etc.ktownag08 said:
Used a realtor for my new build that rebated back 2.5%. Realtor just mailed me a check within days after closing as I wanted to keep my arrangement separate from closing. All went smooth!
I guess I'm not going to be the popular one on this thread, as my two cents is contrary to most on this post. If you have any confidence in your abilities and you have a good feel for what the builders are negotiating then by all means go in there and negotiate your best deal and leverage the 3% buyers agent commission. Be advised some builders are only paying 2% sellers commissions but find out. Research if builders are negotiating price or are they holding to their pricing schedule.exp said:
I'm in the market for a property in this range and thinking I can't F up the contract so bad as to be worth that premium. I've been through two house purchases and sales before so I'm not totally green either. I also feel like I've done most of the legwork up to this point scouting the market and viewing houses.
I'm looking at new construction options...am I crazy to think I can go at this myself and try to negotiate the price even lower?
I wouldn't be opposed to be represented by someone for a flat fee of like $5000 but $12000 just makes me choke a little bit.
Counsel me TexAgs.
