Realtor for new construction

[Anonymous]

I work for a small luxury home builder - the big national builders probably won’t cut you a deal without a realtor, but smaller builders might. We have a specific margin we budget to so we’d pass through any savings.

[Anonymous]

Anonymous wrote:We bought unexpectedly from a builder and our buyers agent was straight up useless in the negotiation. Absolutely a dead weight loss. If you know what you want, don’t bother.

This is true for almost all agents. And to the PP that talked about the agents knowing what upgrades to buy bc they know what has good resale value, you don’t need an agent for that.

[Anonymous]

Anonymous wrote:

Anonymous wrote:We bought unexpectedly from a builder and our buyers agent was straight up useless in the negotiation. Absolutely a dead weight loss. If you know what you want, don’t bother.

This is true for almost all agents. And to the PP that talked about the agents knowing what upgrades to buy bc they know what has good resale value, you don’t need an agent for that.

For people new to home buying and/or an area, can be a benefit. It sounds like some folks on here have had bad experiences with agents, which I totally agree can happy in any home buying situation and is awful—and at worst, heartbreaking given buyers are trusting that person with a significant investment in many ways.

That said, wouldn’t just dismiss the possible value of an agent as a rule.

[Anonymous]

Anonymous wrote:I’ve only done this with a spec builder. He straight up told me the cost would be lower if I didn’t use a realtor. Cut out the middle man. The builder should have a person on staff to guide you about design choices. I’m reality, if you stay 10+ years, kitchen and baths will need updating anyway so get what you like. If it’s with a big builder like Ryan, don’t do it. They build Crap.

Are there any production builders that are decent and affordable though (under $500k homes)? I’m genuinely curious. -G

[Anonymous]

Anonymous wrote:

Anonymous wrote:A PP chiming in. OP, sounds like you may be a bit new to new construction so here is a quick overview of what the process typically is with a builder like EYA:

-Initial appointment to select lot and structural upgrades. You typically put down a small reservation fee on your preferred lot at this point. At this meeting, you’ll get a big price list of all the options you can select from as well as the incentive package to help you noodle what you really want.

-You get pre-approved for the mortgage with either the builder’s affiliated mortgage company or one of the builder’s preferred lenders. They’ll approve you for the house with upgrades and also a cushion for your design center budget.

-You decide you want to pull the trigger, yay! You make any adjustments you want to what you originally picked out, sign a sales agreement and typically put down between 5-10% of the base price of the house. Some builders also require 20% of the structural upgrades and lot premiums. It’s a lot of money for a house that doesn’t yet exist, but only good part of this is that you’ll know you’ve basically already put down enough money to close.

-At this point, some builders will have you go through a more thorough qualification process and the lender will issue a note promising to give you a mortgage as long as X, Y, and Z conditions are met. This note is basically worthless because, of course, you’ll go through the REAL qualification process 90/60 days or so before closing and all of your finances and cash on hand at that point will be what will determine your mortgage conditions. You can lock your rate though!

-Note: you don’t have to ultimately use the builder’s lender/preferred lender, but they’ll likely offer you some additional credit in closing costs to do so.

-In a few weeks, you’ll go to the design center. This is where you’ll pick out cabinets, countertops, tile, all that fun stuff. A lot of builders will require you put down 10-20% of the total amount of upgrades you picked. There are a lot of opinions about how much to upgrade at the design center, my advice is to always put your money into the kitchen and owner’s suite bath. It’ll make you happy and if you have to sell relatively quickly, usually a good bet.

And then you watch your house get built, hopefully on time! 90 days out, you’ll really start working on your mortgage. Honestly, it can be stressful but also a fun process. Hope this was helpful!

Insanely helpful! Thank you, PP!

Very helpful! I am going through this now, and my builder is currently six months behind schedule.

[Anonymous]

Anonymous wrote:You do not need a realtor, and if you don’t use one, you will save about $50000. Just call the builders.

This is patently false. What makes people post when they actually no NOTHING about what they are saying. Just "thinking" something doesn't make it true.

[Anonymous]

You will not get a better deal from a standard builder just because you don't have a realtor.

So many people on here saying their realtors did nothing. What I would say is they had really bad realtors. We had a great one and found the support value added.

It costs you nothing to bring a realtor with you and they can definitely help in the process. Even if its just another pair of eyes on the transaction and to help monitor the stages of building.

Why wouldn't you do it?

[Anonymous]

Anonymous wrote:

Anonymous wrote:

Anonymous wrote:Did you already start building? Could be too late. Check your contract.

At the very least hire an independent inspector.

We haven’t started building. We haven’t even contacted the developer. There are a few units left at an EYA development and I’m wondering if we should take the plunge.

I recognize you didn’t ask for this advice, but we recently sat down with EYA (just us) and it was a good experience—their agent was really professional and organized. Didn’t end up buying one of the units, we ultimately realized we did want a SFH so it was out to the suburbs for us, but just passing along our experience.

Just FYI - their "agent" is a builders rep. They have no loyalty or duty to anyone but their boss - the builder. They can be nice and helpful, but do not mistake that for actually looking out for your interests. Trust me. I used to work for a builder and I would never advise anyone to just trust the builders rep..

[Anonymous]

Anonymous wrote:

Anonymous wrote:

Anonymous wrote:

Anonymous wrote:Did you already start building? Could be too late. Check your contract.

At the very least hire an independent inspector.

We haven’t started building. We haven’t even contacted the developer. There are a few units left at an EYA development and I’m wondering if we should take the plunge.

I recognize you didn’t ask for this advice, but we recently sat down with EYA (just us) and it was a good experience—their agent was really professional and organized. Didn’t end up buying one of the units, we ultimately realized we did want a SFH so it was out to the suburbs for us, but just passing along our experience.

Just FYI - their "agent" is a builders rep. They have no loyalty or duty to anyone but their boss - the builder. They can be nice and helpful, but do not mistake that for actually looking out for your interests. Trust me. I used to work for a builder and I would never advise anyone to just trust the builders rep..

Yeah, I totally agree. I’m actually one of the posters when this thread was first active urging someone take a realtor. I think that was clearer when it was a more real-time back and forth.

[Anonymous]

Huh I would love some good names since I am planning to get a second house so a good realtor will be a great help. I am currently in the process of renovating my current house and judging by the rate it has been going it will take a while. The main problem is that the contractors are hard come buy and with each fix more and more problems keep popping up. The one thing I did right and that is all thanks to me was call a scaffolding company and have them install everything in the very beginning.
A lot of my neighbors are very annoying and so I decided to make sure that even though I have a yard and any potential debris will fall there I will take every precaution to make sure their places are clean. I called a friend of mine who is a contractor and asked if he knew an good scaffolding companies. He suggested I call Pete Suen and his guys and I have been very happy with that decision. They are a really good bunch of guys. They came fast and worked efficient. I recommend them to everyone

[Anonymous]

Go with an agent like Subba Kolla in Chantilly, VA. He only keeps 1%+$500 and give you back whatever else he receives back from the builder or sellers agent (typically 2.5-3%).