How Choosing the Right Agent Can Save You Money When Shopping for
In an earlier report, you learned that most builders' advertised
sale price already includes a hefty commission for the buyer's agent.
For example, a $200,000 home probably has $4000 -- $12,000 in
commission built-in to pay a "buyer's agent" fee. Shockingly, you
learned that if you walk into a sample home yourself (without an agent
who represents YOU), and buy a house, the builder KEEPS all this extra
The reason for this is simple. Builders need real estate agents to
sell their houses. Since 80% of all people who buy homes use an agent,
no builder in his right mind would try to sell out an entire
sub-division without cooperating with the professional real estate
community. To insure that agents introduce his community to any
qualified buyer they may have builders usually offer commissions at
least equal to the 'going rate' for that area. However, since
commissions can only be legally paid to someone properly licensed in
that state, the builder has every right to just keep the extra money
if no Buyer's Representative is forth coming.
The important word here is "introduce". Once a couple wanders into a
sample home by themselves, and register with the Builder's
Representative, they will find themselves hard-pressed, later on, to
persuade many builders to pay for their Buyer's Representative.
Getting something you are already paying for is just one reason you
should find a Buyer's Representative BEFORE you begin looking at new
Here are some other reasons you should work with a Buyer's
Representative when purchasing new construction:
SAVE MONEY ON COMMISSION. You and your Buyer's Agent will
settle on a fee before you begin to look at homes. In some cases,
the builder may offer more commission than you agreed to pay your
representative. When this occurs, your agent can direct the builder
to issue you a credit, at closing, for the excess. This happens more
times than you think. For example, builders may advertise a "bonus"
to the agent for selling a particular house or building lot.
SAVE MONEY ON PRICE AND OPTIONS. Many buyers believe the sale
price on a new home, as well as the listed price for options, are
"written in stone". An experienced Buyer's Representative knows
which items may be open to negotiation.
PROTECT YOURSELF. The standard builder's agreement of sale is
notoriously one-sided, in favor of the developer. While some of the
terms of the contract may be justified, considering the risks
builders have to take, many of the clauses can be modified to better
protect the buyer. An experienced Buyer's Representative will be
aware of the clauses that can and should be changed. In some states,
an attorney must make such recommendations. A Buyer's Representative
will be acquainted with those lawyers who are knowledgeable in the
real estate field.
GET ALL THE FACTS. An experienced Buyer's Representative will
provide you with ALL the OBJECTIVE information you should have
regarding the properties and neighborhood of any house that
interests you. To make an educated decision, you need all the facts
concerning the schools, the area, and the comparative value of the
home you are contemplating (not just the 'good' stuff the builder
The bottom line is... when purchasing new construction; many reasons
exist for using your own Buyer's Representative. It will usually cost
you NO MORE, and you may actually SAVE thousands of dollars, time, and