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Found a new home myself. Ready to purchase, Is it too late to use an agent to negotiate the price?

I decided to go though the process of buying a new home without the use of an agent. But then I  realized that even though I might be saving the builder as much as $12k in agent commissions,  I don't even receive as much as  a $5 gift voucher.  I  learned that the commission  comes out of the marketing budget, and does not affect the new home price that I pay.

So, I might as well use an agent. I am not seeing too much downside. On the upside an agent  might be able to negotiate a better price for me

My question is - am I allowed, a this late stage,  to still use an agent?. I have not yet entered into a contact or communicated either verbally or in writing the intent to purchase. If I have proceeded this far, are there any rules or laws preventing me from  now using an agent to help negotiate the price?

  • August 11 2014 - US
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Answers (2)

Yes, it's too late, and I am in the minority of real estate agents when I say this, but here goes.

Typically, the builder is only willing to pay a commission if your agent shows you the site for the first time, or you register them at your first visit. But assuming that's not the case here . . .

There's only one scenario in which the "hired gun" you bring in gets paid, and that is: s/he gets the sale closed. If not, they figure (probably correctly) that you'll continue your search without them, and so they truly represent, not you, but "the deal."
  • August 11 2014
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Not only will they negotiate the price they will walk you through the whole process and by the end you will thank your lucky stars someone was there to help when complex issues come up.  

 I'm sure whomever you contact will be thrilled to help you -- make sure you find a local broker who knows the area AND new construction.  You also need to make sure the builder knows you are working with a broker...often times builders require the agent to be present on the first showing to be compensated...but it depends.

If you need a referral let me know and I'd be happy to find a couple locals for you.
  • August 11 2014
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