new home build with or without Realtor?

[JohnnyBlaze]

Looking for opinions to use or go without a Realtor regarding a new home build.

Pros? Con's?

[turbotrip]

With a realtor experienced in custom builds*

[D. Dub]

Why add a significant layer of cost and add little to no benefit?

[JordanLotoski]

I do new build consulting all the time, I am sure there are quite a few beyond members that can vouch for the value I add.

Where are you looking to build? and what builder

[avishal26]

Originally posted by JohnnyBlaze
Looking for opinions to use or go without a Realtor regarding a new home build.

Pros? Con's?

It really depends on how comfortable you are with the home building process and deciding on a builder's quality and neighbourhood's value.

If you're very new to this and don't understand the construction process, where you should buy, and who you should build with, a realtor would be a wise choice - especially since its free for you...

Me and my wife though really like to get into the details and do our due diligence and research in our own way when we buy new - which is what we did this time around. It helped that we had been through the process before with the same parent company builder (Selling is a different story)

[eblend]

Originally posted by avishal26

realtor would be a wise choice - especially since its free for you...


Just curious, who would pay the realtor in this case? I know when you buying a place the seller pays their realtor and that realtor splits the payment with the buying realtor, but how does it work when you buying a new build from a builder?

[Sugarphreak]

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[killramos]

Originally posted by Sugarphreak
For builders, most of the people that work there want to participate in building you a home you will love, it is satisfying and rewarding for them. Anytime I've gotten into deeper discussions with employees, you can tell that most of them are in it for the job satisfaction. If you let it be enjoyable for them, they will do all of the heavy lifting and move mountains for you. Nobody wants to go work at a shitty job where you hate the client, and they are no different.

For someone so skeptical of realtors you seem to have a delusionally rosey image of home builders :rofl: :rofl: :rofl:

Cause home builders totally don't do everything in their power to cut corners and costs where they think they can get away with it in order to try and make an extra couple bucks on the house. :rolleyes:

[Sugarphreak]

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[Lex350]

Originally posted by Sugarphreak

One of the issues that arises from hiring a Realtor for a new build is you are putting a barrier between you and the builder. Instead of having a cohesive and collaborative relationship, you've now added in a factor that limits that from developing.



Good!!!....Most home builders don't have your best interests in mind. They want to make money. If you have some knowledge about the build process and finish specifications them you probably don;t need one. But if you have n experience in this, then it is wise to have somebody guide you through it. So many people get f'ed over when picking their finish specifications. There are so many ways a builder can pad their price in this portion of the build. I would also suggest that if you have no experience with building a house that you hire somebody to supervise the build. So many sloppy contractors out there cutting corners.

[killramos]

Originally posted by Sugarphreak


The only thing wrong with my house when I moved in...

That you know of ;)

Maybe they just pretended to be your friend to allay suspicions and keep you from poking around. False sense of trust imo.

Business is business. A builder will do everything in their power to squeeze every cent out of a sale. No positive attitude is going to change that.

[Sugarphreak]

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[Sugarphreak]

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[killramos]

Originally posted by Sugarphreak

there are zero issues with it.

Again you make statements like that and call my generation naive?

[Sugarphreak]

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[killramos]

You are the one who started dealing with absolutes, stating there are zero issues with your home. I am sure that I or someone else could find something done wrong somewhere in your house associated with the build. A nail out of place, a piece of drywall that isn't square, some cracked paint? Or even something more serious.

Hell I bet I could go through your beyond threads and find something that you have complained about.

:rofl:

[turbotrip]

Originally posted by Sugarphreak

You can come inspect it yourself if you'd like... there are zero issues with it.
Lol I can't say I've ever seen a house with "zero issues"

[killramos]

Originally posted by turbotrip

Lol I can't say I've ever seen a house with "zero issues"

Especially one built by Avi :rofl:

[Sugarphreak]

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[killramos]

Originally posted by Sugarphreak
You are welcome to it, I don't think I've complained about the build quality. Only other things I can't really do anything about :rofl:

There garage is so high that I need to buy more than one $$$$ lift to utilize it
The large doors and high ceiling sometimes makes me feel like a munchkin
The city keeps raising my property taxes because I must have paid too little
The yard is so huge that it is going to be a pain in the ass to mow
My driveway and frontage is so massive I had to buy a snow blower

:dunno:

One Percent problems I suppose :D

Originally posted by Sugarphreak
I had a Samsung gas range and cooktop, my builder put in whirlpool into my new place as well. It is okay, Samsung stuff is definitely nicer but for a gas cooktop it works just as well. They put in a electric wall oven though , I definitely prefer my old samsung gas oven. I miss my Samsung fridge too, it was quiet and more efficient.

The appliances are apparently merely ok? Bad enough that you miss your old stuff? Didn't get a great deal on them did you?

Anyhow after i found out you built with Avi i know there are issues so I'm not bothering to go further. Here i thought you had an expensive house built custom :rofl:

[Sugarphreak]

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[A790]

Typically, the price is the price whether you have a Realtor or not. When we were dealing with the builders they wouldn't move on the price at all (no Realtor).

[killramos]

Originally posted by Sugarphreak


I didn't upgrade the appliances... but there is nothing wrong with them either.

Well all i know is my REALTOR (Jordan) got my appliance budget from the builder doubled as part of the work he did for me.

Along with getting me tens of thousands below asking on a quick possession, pressuring them to fix their fuck ups quickly, modifications prior to possession. Errors with the listing. providing me with his contacts for steep discounts on extras and appliances that i needed.

And i didn't even have to pay him :rofl:

I call that a good ROI.

[Sugarphreak]

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[G]

I used Jordan to build as well. If you're anything like me, picking colors and shit is fucking torture. He was my wingman and worked really well with the wife. Jordan is like one of those gay guys that have impeccable taste and a knack for putting colors together but straight. :rofl:

[D. Dub]

Originally posted by killramos


For someone so skeptical of realtors you seem to have a delusionally rosey image of home builders :rofl: :rofl: :rofl:

Cause home builders totally don't do everything in their power to cut corners and costs where they think they can get away with it in order to try and make an extra couple bucks on the house. :rolleyes:


Of course builder's aren't always trustworthy --- but guess what? Neither are a big chunk of realtors.

Sugarphreak's taking one layer of backstabbing, corruption and greed out of the equation by removing the realtor.

Sounds smart to me.

[liquid1010]

I'm just in the process of negotiating a potential new construction. What exactly would the role of a realtor (ie: Jordan), be within that process?

[CLiVE]

Originally posted by Sugarphreak


This is what is wrong with this new generation... you think business is about screwing people. A business negotiation is a two way street, and the final result should be good for both sides. The intent is reach a mutually beneficial agreement. That is proper business.


You just described kijiji right here.....well said

[ercchry]

yeah Jordan is connected, he is like a metrosexual mob boss. no one wants to let him down. you get the best prices and the fastest work, if there is an issue he is on the phone right away to fix it. well worth it for anything house related

[kenny]

Originally posted by liquid1010
I'm just in the process of negotiating a potential new construction. What exactly would the role of a realtor (ie: Jordan), be within that process?

It all depends on how familiar are you with the process on your own. There are selections when it comes to personal preferences vs. resale if you were curious. What options should you go with, what can you skip and worry about later, what makes sense in the home you building and where it is being built. If a realtor has done a few builds with a certain builder, they'll have a better idea of what is possible for you and/or knowledge of previous promotions that are expired that can possibly be negotiated in. Negotiating terms on the agreement (ex. deposit amounts and schedules) with the builder and then of course there is the sale price.

Everything in the list you can do on your own like sugarphreak says, but it all depends on your skill set and if you feel more comfortable having someone help you through the process.

[JordanLotoski]

Originally posted by ercchry
yeah Jordan is connected, he is like a metrosexual mob boss. no one wants to let him down. you get the best prices and the fastest work, if there is an issue he is on the phone right away to fix it. well worth it for anything house related

:rofl: :rofl: That made my day.

[rage2]

Originally posted by G
Jordan is like one of those gay guys that have impeccable taste and a knack for putting colors together but straight. :rofl:
:rofl:

[benyl]

Originally posted by killramos


And i didn't even have to pay him :rofl:

I call that a good ROI.

Sure you did. You think he works for free? Lamborghini's don't pay for themselves.

[thinmyster]

Originally posted by liquid1010
I'm just in the process of negotiating a potential new construction. What exactly would the role of a realtor (ie: Jordan), be within that process?

I don't believe they'll let you bring in a realtor after the initial introduction will they?

[liquid1010]

Originally posted by thinmyster


I don't believe they'll let you bring in a realtor after the initial introduction will they?

I can bring in whoever I want as an advisor if needed..... they have no control over that.

[G]

Generally they won't pay the realtor if they did not make the first contact.

[austic]

Originally posted by G
I used Jordan to build as well. If you're anything like me, picking colors and shit is fucking torture. He was my wingman and worked really well with the wife. Jordan is like one of those gay guys that have impeccable taste and a knack for putting colors together but straight. :rofl:

Ya I wasn't too sure when he showed up in LV loafers but he did seem to have better judgement when it came to buying and selling houses so I guess I can let that slide. . :D

[A790]

Originally posted by G
Generally they won't pay the realtor if they did not make the first contact.
This.

[The_Penguin]

Originally posted by G
Generally they won't pay the realtor if they did not make the first contact.

True. You'd be surprised how many realtors show up on the 3rd or 4th visit for the first time to a showhome having done nothing (for this particular build) and stick out their hand and say "these are my clients, I want my cut"

I'm certainly not painting all realtors with one brush, there are a lot of good ones, but a surprising number of lazy ones too.

[JordanLotoski]

Originally posted by benyl


Sure you did. You think he works for free? Lamborghini's don't pay for themselves.

I currently work with a builder as of now, I know if a buyer comes in with an agent or without the price is the same..If you bring an agent in then a portion comes out of the salesman's pocket and a portion from the builder.

If your Real estate savvy and are good with selection then I say you probably wouldn't benefit from my services. I do a don't of design work on the side so I know whats trending and whats not, I know what buyers are looking for so I can help you not only to build a great home but a great home for resale.

:thumbsup:

[gwill]

Not to burst anyone's bubbles but what will a realtor do for you when your house is delayed a couple months during construction? What will a realtor do when the builder doesn't fix a deficiency fast enough? Nothing.

A realtor will hurt any positioning a buyer has when purchasing as the builder will factor what they pay them into their closing costs/margins. It's a hysterical myth that a realtor can get a bigger discount for their buyers from a builder... a builder has a bottom line and won't offer a house for less because a realtor thinks it should be less. Builders also have all of their own sales data for comparable price points to support the price they are selling at so negotiating will only go so far.

In the end it doesn't hurt to use a realtor if they earn their keep but thats really hard to justify in new construction. Unless its your first home where you need some hand holding using a realtor is not needed.

Simplest way to decide on what your best option is.... is to do whats most comfortable.

[avishal26]

Originally posted by Sugarphreak


This is what is wrong with this new generation... you think business is about screwing people. A business negotiation is a two way street, and the final result should be good for both sides. The intent is reach a mutually beneficial agreement. That is proper business.

{snip}



Couldn't agree more!

The problem is that this mentality is spreading.. mostly because even if someone does not have that mentality, once that person gets screwed over they want to maximize their own position the next time and don't care if they screw someone else over because that is almost vengeance for them (if that makes sense).

So what ends up happening is that the mentality spreads.

If everyone approached selling/buying transactions with a mutually beneficial agreement in mind, it would make things a lot smoother for sure. But that would be the end of the business world as we know it.

TL: DR - if you know what you're doing - have built a house before, understand how a builder specs, can pick interior options and know which neighborhood you want to be in... don't need a realtor. Otherwise - it helps.

ALSO - I"m pretty sure the bottom-line for a builder is different if you use a realtor vs. if you don't - hence more negotiating room for you.

[bignerd]

When it comes to negotiating and writing contracts, the builders will have someone who does this every day representing their end, so why shouldn't you have someone that does the same thing every day on your side?

We bought a spec home, with a realtor and the builders tried to switch out various things (never in our favor) while negotiating. Our realtor caught every switch and change and knew what were and were not reasonable costs, fees, timeframes, changes etc

[gwill]

Originally posted by bignerd
When it comes to negotiating and writing contracts, the builders will have someone who does this every day representing their end, so why shouldn't you have someone that does the same thing every day on your side?

We bought a spec home, with a realtor and the builders tried to switch out various things (never in our favor) while negotiating. Our realtor caught every switch and change and knew what were and were not reasonable costs, fees, timeframes, changes etc

Builders won't negotiate or if they do its a very consistent discount thats why and a Realtor won't change this. And just an FYI the sales person in the show home doesn't really do any negotiating. They know what their company would accept and wouldn't accept so its not really negotiating at all.

[tpurcell4]

Not sure if it has been said here, too many posts to read them all. But several builders are still priced high compared to the resale market by approximately a developed basement or a garage ($20-$30K). The reasoning I was told by two friends with two separate builders is that they are still selling at the higher prices in the show homes, so there is no point in lowering the prices.

If you work with a real estate professional they will run comparable listings for you and make sure you are not over paying. And as I had seen posted once or twice the builders do not allow much room for negotiation.

In a market where there are options in the resale market, at least consulting with a realtor before purchasing could save you several thousand, plus the seller pays them, not you.

Cheers,

Todd

[A790]

Originally posted by tpurcell4
Not sure if it has been said here, too many posts to read them all. But several builders are still priced high compared to the resale market by approximately a developed basement or a garage ($20-$30K). The reasoning I was told by two friends with two separate builders is that they are still selling at the higher prices in the show homes, so there is no point in lowering the prices.

If you work with a real estate professional they will run comparable listings for you and make sure you are not over paying. And as I had seen posted once or twice the builders do not allow much room for negotiation.

In a market where there are options in the resale market, at least consulting with a realtor before purchasing could save you several thousand, plus the seller pays them, not you.

Cheers,

Todd
But Todd, why should I add another layer of greed and corruption to the mix? :rofl:

[tpurcell4]

because Lamborghini's don't pay for themselves ;)

[gwill]

Todd: you raise a good point where you can sometimes get that house in the resale market for a bit less. Definitely using a realtor in that situation is a great route to go but many buyers prefer brand new and want something specific. Not everyone wants a used home.

There are tons of legitimate reasons to use a realtor but when buying a brand new construction house its one area that can easily be done with or without.

[tpurcell4]

^^
Yes, that is true. When I first got started in this industry I worked for Sabal homes, and while working there I had the mentality of why would someone hire a realtor to do this, and most of the time it was correct.

After I bought my first home, a new build in Okotoks, if I did not have industry knowledge, I would have received a fraction of what I received, I would have had to pay for the builders mistakes, and would have allowed the builder to bully me as they were trying to. This is not every builder, and not every sales manager within a company.

I would refine your statement to be, if you have had past experience with new builds or family members or friends who have experienced the good and the bad, then you can go through the process quite easily without a realtor. If you do not have the experience or network, your Realtor is there to make sure you understand what you are signing, and hopefully avoid unnecessary surprises during the build, because there will be plenty regardless (I have yet to witness a build without some sort of surprise or issue, or delay).

Also, my first home was a new build, my second a larger existing home that we are renovating. I have to admit, the move in with the new build was nice, everything was already what I wanted and how I wanted it, yet living for almost 2 years before all the homes around me went up and the constant dirt and flat tires from driving over nails left by construction on the road, I have to say I am torn which I would do next.

For what it is worth, you could buy the older home and renovate it for the difference in price, but also don't take on more than you think you can handle.

And that's my ramble!

Cheers,

Todd

[bignerd]

Originally posted by gwill


Builders won't negotiate or if they do its a very consistent discount thats why and a Realtor won't change this. And just an FYI the sales person in the show home doesn't really do any negotiating. They know what their company would accept and wouldn't accept so its not really negotiating at all.

Everything is open for negotiation, possession date, deposit, upgrades, floor plan changes, mistakes, price etc.......

I am also aware the people at the show homes do not negotiate and are just pretty faces, they take your deposit to hold your lot, have you sign the papers and fax it off to a higher up for approval-that is who you negotiate with.

[gwill]

You don't have a clue how it works by the looks of things...

Some builders will be more flexible then others but there is a bottom line. They won't sell a house to you for $20k less then the previous 10 sales just because you ask.

[Sugarphreak]

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[The_Penguin]

Originally posted by bignerd



I am also aware the people at the show homes do not negotiate and are just pretty faces, they take your deposit to hold your lot, have you sign the papers and fax it off to a higher up for approval-that is who you negotiate with.

Wow really? I think you grossly underestimate the showhome staff, or have only ever dealt with a host/hostess and not an area manager, or associate.
While they don't have final authority to approve an offer, the area manager, and sales associate are certainly more than "pretty faces"
They have full knowledge of each home model, knowledge of the area and any architectural controls, do some design and design modifications, interface with the site supervisor re any build issues, and probably a lot of other things I'm not aware of. No, I don't work in the industry, but I know several people who do, and they would be pretty insulted at being referred to as just "pretty faces"

[tpurcell4]

Originally posted by bignerd


I am also aware the people at the show homes do not negotiate and are just pretty faces, they take your deposit to hold your lot, have you sign the papers and fax it off to a higher up for approval-that is who you negotiate with.

I am quite flattered. I guess 10 years ago I was quite pretty :rofl:

[gwill]

Originally posted by The_Penguin


Wow really? I think you grossly underestimate the showhome staff, or have only ever dealt with a host/hostess and not an area manager, or associate.
While they don't have final authority to approve an offer, the area manager, and sales associate are certainly more than "pretty faces"
They have full knowledge of each home model, knowledge of the area and any architectural controls, do some design and design modifications, interface with the site supervisor re any build issues, and probably a lot of other things I'm not aware of. No, I don't work in the industry, but I know several people who do, and they would be pretty insulted at being referred to as just "pretty faces"

I am pretty sure that guy is Asian with the attitude that everything is negotiable. And your right that the person in the show home is a buyers point of contact. They know what will or won't happen with any offer and they do a lot to make the process a smooth one for buyers. He's pretty clueless as you can see by his comments.

Even sugarphreaks comments on changing the contract made me laugh. My friends in the industry would laugh at anyone who attempted something like that nor would their companies allow any changes. That builder must have been super desperate for a sale to put up with him.

[Sugarphreak]

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