Alerts are a great way for you to stay up-to-date on things you care about. We will email you a list of the new items that match your criteria at a time of your choosing.
My 2 cents on the "chumminess" issue is simply that any buyer should do their homework BEFORE hiring a buyer's agent. If you feel confident with the agent, if you've asked them for references from buyers they've worked with both in new construction and resales, if they make sense in talking to you about how they represent you and not the builder...then sign. If you don't feel that kind of confidence after doing your due diligence, then don't. I wouldn't expect my attorney to dislike people that I'm in an action against, I'd simply expect him/her to know who the principal is and act accordingly. Talk to friends who have had houses built, see if they feel that they were well served by their agent...those may be some of your best referrals.
I like that word "chumminess". I think it cuts both ways. You would like an Agent who is close enough to the builder, as Joshua pointed out, that they might get the first call on new deals, but you don't want close enough to the Builder that it interferes with their ability to negotiate the hardest for you....
How would you know if your Agent was too close or just close enough? That's the million dollar questions.
It really depends on how comforatable you (the Buyer) are in your own personal assessment of the development and to know how what the value of the product is... if you are comfortable then possibly the
"chummy" buyers agent could be for you, because you will not let them cut you short...
I don't know how close the Agent is to the Developer has its pros and cons, it really depends on the Agent (if they are going to negoatiate hard for you) and on you (the Buyer) how much do you know, just in case the Agent is blowing smoke up your A$$.
Also little hint on developments. If the company is publicly traded (maybe even large private company) even to some degree smaller companies... Find out when the end of their fiscal year is. The closer it is to the end of the fiscal year and if you have the ability to close before that end of the fiscal year.... That is where you get the highest reductions.
I've seen over 45% reduction on price for quick closing for National Development company.
A realtor can provide great value in new construction transactions. There are some upgrades that enhance the value of a property and some that do not. An experienced agent can help you with those. Lots and lot premiums are also something that should be carefully considered. I have dealt with many individuals with re-sale needs who have purchased substandard lots from the builder and have trouble re-selling their properties. Also, the builder tie-ins that now exist with mortgage and title are being re-examined and the laws may be changing. An agent can help you find an affordable and advantageous way of financing your home that works in the interest of the buyer and not the builder (remember Beezer homes)? I have seen developments where the builder will undercut re-sale to get houses sold. It is not legal in my state to cut deals with the builder to take away commission from an agent. Procuring cause laws are something to consider before you undercut anyone. Also, the idea of respect and consideration in business is important. You wouldn't want someone to go to your boss and undercut you for your paycheck. Working with an agent can help you navigate through the homebuying process and look out for your best interests in the long run.
(continuation) Absolutely. Call me any time and say "Josh - I want to give you $2,000 but I want $1,000 of it back from you" If that's all you want me for, that's fine with me - but what if that builder is having quality control issues? Well, their sales rep surely isn't going to speak up and let you know...and at that point, you didn't hire me for my expertise, you hired me to filter some extra cash your way (that's called a "no brokerage relationship" here in Florida and I would have no responsibilities to you whatsoever aside from sticking my name on the paperwork - by all means verify it with your lawyer because I'm not an attorney).
My value as a buyers agent (this is how I earn my full commission) with regards to new construction is that I know every builder in my area - from the local custom builders to the sales reps and regional managers at the national companies. In fact, I've got builders keys for most of their inventory (so I can get you in after-hours or early morning if it's more convenient for you). I can also tell you the pros and cons of each builder and let you know who might be the best fit for your particular situation (price, amenities, quality, personality).
My full commission gets you my full attention, knowledge, and expertise regardless of what the builder is offering (be it 1% or 7%). But like I said - we can negotiate and I'll absolutely take a quick $1,000 so long as your expectations are commensurate.
You can if the agent will allow it. I know I work for my commission and my education is valuable to a client. The value in a good agent is their education on the communities, finance,property taxes, and contracts. The builders out to paint a rosy picture for you and the agent is going to tell you the pros, and con's so you make the right decison. I have one sales office that tells clients they have no closing costs and they believe it. Property Taxes is always a different answer, and the list goes on.
Once you decide on a community your Realtor will know when a good deal comes up from the builder and you will be the first to know instead of the last if you have a relationship. Deals don't go to buyers who don't have a strong relationship with a Realtor. Deals go to buyers who Realtors know are going to buy from them. Off the subject a little.
It's the qualify of our education to the buyer that earns our commission.
Your Realtor may know a very important fact about that community that if you knew you would change your mind and that can be worth 1000.s of dollars to you. Like a prison is going to be built next door or a new garbage dump is going in. You would not believe how many investors built houses next to the garbage dump in our area becasue they know it all and a Realtor doesn't deserve a commission. Some of them still don't even know the dumps in their back yard of property they bought.
[content removed by moderator for being self promotional]
Since August 2009
... and, it's free and anonymous
Zillow® Advice depends on each member to keep it a safe, fun, and positive place. If you see abuse, flag it. More on our Good Neighbor Policy
What is the advantage/disadvantage of retaining an agent when buying new homes?
sponsored by
NoviceBuyer
Contributions: 1
View full profile
Most folks negotiate directly with a builder. What value can an agent provide?
An agent generally get 3% fee from seller/builder. If you already narrowed down the home you want to purchase and the builder accepts broker cooperation, can you cut a deal with agent so you get half of the commission the agent gets from the builder?
If you find this content is in violation of our Good Neighbor Policy, please let us know and we will review it.
We will review this content. Thanks for helping make the site more useful to everyone. To learn more, read Zillow's Good Neighbor Policy.