Why Should I have A Realtor If I Want New Construction?
Most home buyers looking at new construction never consider hiring a Realtor to represent them. Most have the perception; If I hire a Realtor, the builder or I have to pay them a commission and they make money for doing nothing. I find this pretty funny, so let me lay out the facts and truths to this urban myth.
First of all I want to say this. Yesterday evening I saved a lady $14,000 off the list price of a new home plus got her upgraded appliances and flooring. All total about $20,000 I saved her. She would never have considered nor would she been able to negotiate that kind of deal for herself.
Points Of Fact:
1. New Home sales people are not licensed. They are sales people, they answer to the builder. They will be really nice to you but their interest is selling you a home. Most are great people and have great ethics but again they work for the builder not for you.
2. Commissions are paid by the builder it comes out of the profit margins built into the sales price of the house. Commissions are not paid by the buyer nor will the builder sell you a house any cheaper because you don’t have a Realtor.
3. Most builders will have either their own mortgage company or they have a “preferred” mortgage company they want you to use. Nothing wrong with this but as a client of a Realtor they have mortgage people too so you are able to shop for the very best deal.
4. Builders tend to play ball with Realtors negotiating for a client because they want the Realtor to bring more clients. Where as you the customer will buy one house this year while the Realtor could bring 10 or 12 clients to buy. So the Realtor has more leverage than the average person.
5. As a client of a Realtor you have representation in the transaction from contract to close. Realtors are accountable to the Texas Real Estate Commission, The Local Board of Realtors and we have a very high standard code of ethics. Without a Realtor you have no one representing you. You are all alone.
6. As a buyer this service costs you nothing, ITS FREE.
So why wouldn’t you hire a Realtor to represent you in one of the largest purchases in your life. I submit it will cost you thousands if you don’t.