I am told that a developer won’t always pay the agent represting if they didn’t come during the first vist to the project of interest. How would I go about finding out if there is a 3% discount for not using a realator without jepordizing my optertubity to use one if not discount is offered. Ultamitly I will want to use one if they don’t offer me a discount
#1 by glenn on February 25, 2010 - 10:26 pm
A builder or developer may tell you all sorts of things to entice you to buy- and possibly to try and get you to buy without anyone to represent your most excellent interest.
The reason a developer pays a Realtor is to attract additional buyers and also hoping that those people will be more likely to close because they have someone help them walk thru the steps.
Without a Realtor you are not likely to know what costs are normally paid by the seller and what is normally paid by the buyer- who normally arranges the loan and title company. If it is normal to get a new home inspected (it is not normal but it is a great idea for a buyer to pay for an independent inspection to make sure the builder built the home correct).
But if you want to know what a developer will claim to offer- you should just ask. I think it may cost you a lot more than 3% to go without a Realtor.
#2 by Expert Realtor on February 25, 2010 - 10:26 pm
You can ask…it really doesn’t matter, but I can already tell you what the developer will tell you.
They will tell you that they will not provide a discount without a Realtor…and here is why:
1. They don’t have to…it’s that simple. It’s extra profit for them and less of a hassle if you don’t have someone to represent YOUR most excellent interests.
2. If you bring a Realtor…they don’t really care either…it’s because they have already budgeted the commission into the sale price of the house from the beginning.
If word gets out that a developer will give a discount if the buyer doesn’t bring a Realtor, developers know that firms will cut them off…and Realtors bring in the MAJORITY of their business.
#3 by Leeway on February 25, 2010 - 10:26 pm
I don’t totally agree with the answers you’ve gotten. I am about to do the same exact thing. Yes, the developer is also a RE agent in my case with his own independent realty and not a member of a large RE business. As a matter of fact, I believe I am going to use this developer/agent to sell my current home and in turn by my new place from him also. I will be doing this with a RE attorney to look over everything.
I’m looking at it this way, I have been offered a discount both on the selling commission of my current home and also a discount on the purchase of the new one because I will deal directly with the developer/agent.
I think this developer/agent will work hard to sell my home because I will be buying a new one from the same person in the end. It is a dual commission and a dual savings. We both benefit.
Everyone says to get your own realtor because you don’t pay the commission when you purchase. But at the same time, they will tell you that the commission is already built into the selling price. That means YOU are indeed paying the commission on a purchase.
From what I’ve learned, it is correct that they need to represent you right off the bat. Every RE agent I’ve spoken to stresses it loud & clear that if I go to look at anything without them I should tell them I already have an agent & if there is a sign in sheet to enter their name. I NEVER do that on purpose. If you did not go with an agent and you did not name an agent, then the developer should deal with you for what he/she would be paying in commission to your agent or at least very close to it. Just simply ask the person and see what answer you get. I do know that if you have an agent and you tell them you are going to look at such & such a place without them. They WILL call and insert their name as your agent before you get there. I have had that happen a couple of times and I was not happy with it.
I am not in real estate, matter of fact I’ve never sold & bought property before. But this is how I am going to do it. It is a huge difference (savings to me).
Whatever you do….. get it in writing & think about seeing a real estate lawyer. Good luck to you!!