My husband and I are considering building a home in a new communtiy. Would a Realtor be beneficial to us? We are first time home buyers and building is a consideration. Thanks in advance for any advice/comments.
Thank you sooooo much for all of the advice. We have contacted a Realtor and will be visiting a few of the communities that caught our eye. Your input was greatly influential and appreciated.
YOu would have to pay them for doing nothing. You do not need a realtor unless you are buying an already built home. I was almost tricked.
L
First of all the builder will have you sign his documents and his financial requirements, when the state has programs for first time home buyers, and the builder will not tell you. Get a realtor. I am a realtor=Gloria Morin Gray-###-###-#### good luck!
Hi L.,
Well of course I have an opinion on this because I am a Realtor. You are smart to ask the question before you get too far into the process. There are several reasons to use a Realtor to represent you when building or buying a new home.
The person working on site at the model home is a salesperson (not a Realtor) who works for the builder. If you sign a commitment with your own Realtor, then your agent is bound by the State of Texas and your written agreement to represent YOUR fiduciary interests only. An experienced agent can be an invaluable tool in helping you navigate the tricky waters of contract negotation.
Almost every builder in the area is offering unpublished incentives right now. The deals are especially great on "inventory" homes which are already finished or almost finished, but have never been occupied. They also offer incentives for the agents, but a scrupulous agent will always disclose what the builder is offering them and will not steer you according to their own interests - they will be looking for what is best for you. A good agent can also help you indentify which builders in your target area have the best reputation and which may benefit you when it comes time for resale.
Speaking of resale, it's something you definitely want to consider when looking at new construction. The prevailing wisdom is that you need to plan on staying in your new home at least five years in order to cover your costs to sell. Of course, there are exceptions to this, both over and under that timeline, depending on where you are looking. The point is to consider your exit strategy at the same time you are considering your purchase.
If you do decide to build, there are a number of checkpoints along the way between contract and move in day and your Realtor will be your advocate through all of those months. Financing decisions, multiple walk throughs, material selections, and inspections are all part of the process.
Whatever you decide to do, ALWAYS hire your own independent home inspector to check the builder's work for you. Most builders discourage this (naturally) but you have got to stand up for your consumer rights and insist on your own person (and write it into your builder contract). 100% of the time your inspector will find something that the builder missed (not neccessarily out of negligence, there's just so much going on) and the money you spend on an inspector of your own is worth every penny and then some.
And speaking of money, if you hire a Realtor to represent you, they get paid by the builder and it doesn't cost you a thing. Some of the less scrupulous builders may try to convince you that they would give you a discount equal to what they would have paid the Realtor. I have yet to see that actually come to fruition and if it ever did, I would have a hard time being convinced it would be worth it in exchange for sacrificing your own respresentation.
Enjoy your house hunting and if I can be of assistance, please call on me.
http://www.ParadiseSlaughter.com/
K. Paradise Slaughter, Virginia Cook Realtors
We used a Realtor to find our first home since we were new to the area, but 5 years later we found a new community and we visited the model homes and bought our second house without a Realtor. In my opinion, a Realtor is helpful when you don't know the area and need a place quick. They can tell you about the area(schools, etc.) They will take you to the model homes and in return they get paid by the builder. Realtors know which builders pay them the most money and that is who they will try to get you to buy a house from. If you know the community you want to build in; you don't need a Realtor. All you need to do is visit the model homes and ask them to give you the discount they would have given the Realtor. The Realtor we used the first time didn't stick around once we decided which builder to buy the house from. You deal with the builder and do your own negotiations.
YES!!! We did on our last purchase and it was great (we bought a new home). I'd also suggest (if the realtor doesn't) to have an inspector check out the house too. We didn't do this (our agent didn't suggest to) but my parents paid the extra money to have their house inspected and it helped a lot(they also bought a new home)!
Hi L. -
While some builders will negotiate, most will not. They have fixed prices on sales, lots and upgrades. However, there are some things that can be negotiated and as a Realtor, we know which builders have the best "specials" and take the best care of their clients, long-term.
You should have someone representing YOUR interest, especially when the cost is being absorbed by the builder.
We have agents throughout the metroplex that can help you through the process and answer any additional questions you may have. You can also visit our website for lots of reports that will help you through your first-time purchase.
Let us know if there is anything we can do to help! Best of Luck!
Yes, if you find a good Realtor, they often times have "connections" and can get you quite a bit of a discount and bargin with them, depending on the builder and the community...a "wholesale price". My hubby & I are thinking of doing the same...good luck!
It won't cost you anything, so it can't hurt. We had a realtor when we built our home, mostly because we were also selling - but I can say it was helpful to have her in our corner when we had a small disagreement with the builder toward the end of the construction. When we felt we were at a stalemate with them, we told our realtor and she called them and all of a sudden they started cooperating again. It was also nice to have her do the final walk through with us - just to have another set of eyes catching a few small cosmetic things. It certainly isn't vital to have one, but you have nothing to lose by getting someone. I can give you the name of ours if you are interested.
If you are selling a house too, sometimes the realators will reduce the percentage on the sale of you home, if they get the percentage from the builder on the new home. We did this and saved on the realtor fees from the house we were selling.
Be sure that the realtor is with you on the very first visit to the builder, or the builder won't agree to the deal.
also the realtor maybe able to get the cost down on the new built house... maybe even make a deal with the buider to bring more new clients to them if you can get the cost down on your house. Look at price # for sale homes in that area to get a ball park for the new house. Logonto the counties tax rates to find comparable sq. footage homes/prices too.
We "saved" 50K from the "asking price" to the price we paid and they threw in a nicer fence/ built-ins in the living room ceiling fans in all the rooms/ and upgraded carpet upstairs....good luck
Yes, unless you use a realtor, your interests are unrepresented in the buying process. The on-site sales representative represents the builder and works in the company's best interest.
The builder/seller pays the realtor's commission, so it costs you nothing.
We built new and used a Realtor and it was the best choice ever, as the builder had some "screwy" things up their sleeves and our Realtor fought for us each step of the way. Good luck!
It can't hurt. No its not necessary, but sometimes you need to know the facts before you go in there. Especially if you haven't done it before. Also the builder is going to pay the commission not you, so it really doesn't cost you anything to have one with you.
YES!! You need someone on your side-- better safe than sorry. They know the ins and outs and what to look for and can negotiate things for you that you may not even think of. Def yes!! It is no cost to you, so why not??
A realtor may help you find the lot (if you don't already own one) or a realtor may be able to introduce you to some builders or a realtor can help you in locating areas with specific amenities. If you are familiar with the area and you already know what you want, then you may not need a realtor. Although many comments are that the realtor won't cost you, because the builder will pay their fee, do understand that you will indirectly pay for it, because it is likely that the builder's sales price will be higher if he has to pay a realtor's fee.
The next issue is whether you are considering building a home in a community where an established builder has model homes. If so, then the builder will have a sales staff and you may not need a realtor (unless you don't feel that you can negotiate well with the builder). In this environment, you can ask for many items from a builder (including upgrades and additional appliances).
If, however, you are considering building a home on a lot of your own that is not in a neighborhood restricted to only a few builders, then you will truly be building your own home (from plans to finish).
For any builder, I would suggest that you check the state registration (builders are required to register for licenses) and meet with several builders (including viewing some of their finished homes and talking with some of their homeowners) before deciding. My ex-husband (he and I are friends now) is a builder who contracts to build on your site. His contract allows you to handle the money from the lender (i.e. you pay the contractors; he manages and directs the building process, but not the money) with a set builder fee paid to him. If you are interested in speaking/meeting with him, I would be happy to introduce you. You can call me at ###-###-#### or email me at ____@____.com if you would like more information. His homeowners have been happy with this, because they have as much input into the building as they want AND they control the money....so you don't run into problems with a builder who upcharges on materials (for his own profit) and who doesn't pay subcontractors (leaving the homeowner with liens against the home).
-L.
Most especially, if this is your first time to buy a home, I would have a realtor. She/he can guide you through the process.
Building a home is exciting. It is also a very stressful time. We have built 2 homes. We had builders that cut corners, tried to cover mistakes, etc. I quit my job on the first building experience in 1992 just to oversee what they were doing. We built the home we are in now in 2000. Another bad builder experience. You MUST stay on top of them, stay strong and stand your ground.
We have practically re-built this home by getting rid of the builder quality products and upgrading. We are now, after 8 yrs, happy with our home.
I agree with everyone else. My husband was in HOME SALES for several years and he recommends that for your first time you use a realtor especially because you are not paying! It is much like having a personal shopper for free.
I have a friend that specialized as a NEW HOMES Realtor before the economy got bad but now she is with EBBY Halliday. Her contact info is ____@____.com if you have any questions I am sure she would be glad to help.
http://www.ebby.com/agent/MichellePhan
Ride around and check out model homes prior to building your home! Lots of head aches when you build a home!
You really don't need a realtor. You know the community and you know what you want. There are no other negotiations other than the upgrades that you want on your house, etc. It's not like buying an older house where you will need somebody to help you with the bargaining process. For new constructions, the prices are set and it's just a matter of picking out your choices for the house.
I've done it twice. The first time, I was single and 21 years old.
One thing I need to warn you is that the builders will set up a date for you as your possible finish date. Don't believe it until you're actually sitting down and signing your lives away. Also, don't sign anything unless you are FULLY SATISFIED with the house. Running after them for minor touch ups may be a challenge.
Again, from experience.
Good luck and rely on each other for support. You and your husband will be tested but just lean on each other as it can be stressful. It will make you both stronger. But, it's worth it.
Hope that helps.
Peace,
Maggie.
My husband would be a great person to answer your questions since he's a mortgage banker and has many realtor contacts. Please e-mail him at ____@____.com and tell him his wife referred you. I wish I knew more about the business myself to help...
