Which is good to get a real estate agent or just buy a house directly to the developer?

Question

I'm a first time buyer shopping for a house. Someone told me that getting an agent would give you a high price on your house because they will allot comission to the agent.

Answer 1

You NEED a real estate agent - a "buyers agent" to help with the purchase. Otherwise, you have no representation. And, I'm sure you won't pay more from a builder whether you use an agent or not. Actually, the sales people probably start rubbing their hands together when you DONT have an agent... they know you don't have someone that will stay on top of their process. A buyers agent gets pay by the builder, so it doesn't cost you anything. Get an agent - you'll be happy you did, to make sure the inspections and contracts are all in your favor. Good luck, and congrats on your house!

Answer 2

YOU DON"T NEED A REALTOR in purchasing a residence with the developer. In truth you'll use this to invite for reduction or different facilities you wish to have for your residence. How it really works is like this. If you've got a realtor in purchasing from a developer, the developer pays your realtor a fee of three% off the cost ( which actually you possibly deciding to buy it by way of your mortgage - even though not directly). Tell the developer that you've a realtor handiest she/he's in an appointment and are not able to include you. Bargain with them, that you are going to drop the realtor if they'll supply an improve or further door or nonetheless you're going to use the realtor's supposedly fee...Got it? (the fee you need to ask the developer how a lot they'll supply your ghost realtor) The present: The developer will want a downpayment. You need to have a downpayment equipped whilst you negotiate. The larger the downpayment (20%) the bigger for you. Sometimes they'll ask you for a few %tage of your downpayment, then after a few papers are processed, the remainder of the 20% shall be wanted. The developer will manage the entire mortgage processing - Do now not get a five/a million arm. This implies that earlier than five years you need to refinance your mortgage in any other case the quantity of mortgage will move up. If your credit score may be very very well, attempt to get a traditional 30 12 months repair - you'll refinance it besides within the center of 30 years when you ought to. Make certain that you just realize the entire paperworks.

Answer 3

First off, the choice is entirely yours and should be made according to your knowledge and comfort level. Since you are asking this question, it leads me to believe that maybe you should get a realtor involved.

Realtors are (or should be) knowledgeable about the real estate laws in your state and can be an invaluble asset. Make sure that they are working to represent you (buyer's agent) and let them know exactly what you want and do not want. Maybe you should buy a new home, or maybe you should buy a pre-existing home. New homes usually come with a one year builder's warranty and you can usually have some input as to the decor if you get in early enough in the building process. Existing homes have usually been around long enough to show construction defects.

Either way you chose to go, insist on a whole house inspection (better to pay a couple extra hundred now than thousands later).

Now as far as getting a better deal with or without an agent, that's up in the air: ultimately, YOU are paying the agent's commission because its your money that is paying for the home. Some believe that a good reputable agent will save you more money than the commission they earn. (Yes, agents actually "earn" their commissions; they do work even if its not obvious to the general public.) One major note to remember: COMMISSIONS ARE NOT SET BY LAW; THEY ARE NEGOTIABLE!!!

A reputable agent will look out for your best interest in the transaction. This can include negotiating a lower sales price and more amenities, ensuring that inspections are done in a timely manner, helping resolve any title issues that may surface...

Depending on where you are located and your state's regulations, you may or may not need an attorney to complete the transaction. (Out west, it is not necessary)

Here again, it all boils down to your comfort level and your expertise.

Best of luck!!

Answer 4

Depending on the degree of complication on the laws in your area, one might want to explore purchasing on ones own.

Real estate agents make the purchase easier and are liable if anything goes wrong. Take note that it takes money to bring them to task. They have a fiduciary obligation to look after your interests. That being said a lawyer is essential in all transactions and they have the same obligations. A real estate lawyer is an essential - the agent is not.

Make sure that a title search is done. Pay the money for a structural electrical and plumbing inspection. Your bank may have requirements for their mortgage lending.

One can obtain an offer to purchase form from a real estate lawyer. Make sure your conditionals and chattels desired are listed. Perhaps a provision that the offer has to be reviewed, an approved,by your lawyer in 36 hours before it is valid. The bank will require a real estate appraisal and perhaps a bank appraisal - one or both, depending on your area. Ask this

The down payment should stay under your control (held in trust with your lawyer) until the sale is completed.

So - you need lawyer - bank - appraisals - inspections ---- you do not need an agent.

NOTE: in some areas one can buy a home without changing the mortgage, or assuming it, this may or may not require banks approval , If the rate is lower - it is to your benefit --- get a copy of the mortgage and ask your lawyer.

If you have the time to research properties. It saves you thousands of dollars.

Remember a thing is only worth what someone is willing to pay for it. Asking price is only asking .

Developers sometimes carry the mortgage - sometimes not - if you are dealing with a developer --- make sure he/she has been in business quite a while and is solvent - Many developers give a warranty on new houses- but disappear as the house sinks or problems happen. I personally would not buy a new house unless I were there to watch it being built to my specifications. They look nice - but I have seen huge holes being covered up by facing causing leakage and structural damage.

Answer 5

I know buying from builder is a lot less work for real estate agents, because the builder does it all and agents don't have to draw contracts. For that reason, a lot of agents are willing to kick back some of their fees after the transaction is completed. I would negotiate and find an agent who is willing to split his/her commission with you.

If it is a reputable builder with other construction projects in the area, you don't have much to concern. My experience builders, they pretty much have the whole closing and inspection process figured out and you don't really need an agent.

You can negotiate direct with the builder for a lot of upgrades. Tell them that if you thinking of bringing an agent to make sure the transaction goes smoothly from your perspective, unless they can give you reasons not to bring an agent. For example, if you are buying a $200k condo at 3% co-op. The builder will pay $6k in commission. You might be able to get $7k worth of upgrade from the builder because the $7k worth to you only cost the builder $5k.

Best wishes.

Answer 6

I would never suggest buying a house from the developer without using a Realtor, especially if your a first time home buyer. I know a great mortgage broker that could help you with your loan if you need a referral let me know. Remember the Realtor works for free for the buyer because the seller is paying their commission. It will be a lot less stress for you and you will know that you're covered legally. I also have a great referral source for Realtors. Good luck!

Answer 7

You don't NEED an agent, and if you know how to play your cards right, you may save a couple of $K's but if you make a mistake it'll cost you much more than that.
I'm a Realtor in Raleigh, NC, so I'm biased... BUT when I go to some other place to buy property, I always use an agent... like the time I bought a rental home in the mountains. I could have represented myself and get all the commission, but I didn't know the market, so I interviewed agents and chose one[keyword here is interviewed!] ... and I buy/sell over 50 homes a year... so, I don't think I'm good enough to represent myself... and you?

-jose-

Answer 8

If you want to feel confident that you've selected the best builder, the best home for your money, then hire a Realtor. Interview 3 Realtors who work the area you want to live in. Make sure each of them as a designation, either GRI or CRS. It shows they have been in the business awhile and have developed expertise in residential homes. Select the one that you feel most comfortable with and feel you can trust. Listen to their advise and guidance and you can feel confident in your decision on what to purchase. Otherwise, are you going to have the time to call and check references on each builder? Are you going to call their suppliers to see if they pay their bills on time? Are you going to call past clients and current people working with them to see if they are good to work with? Are you going to call the Better Business Bureau or the cities and states to see if there are any outstanding complaints? Hire a Realtor, they know these things and won't waste your time. Good Luck!

Answer 9

If you want to buy an existing house, get a realtor. If you want to buy new, you don't need one.

If you are buying your 1st house, consider taking a 1st time homebuyer seminar from a non-profit (not a lender) before you begin shopping. It will be well worth your time.

Answer 10

I agree to the explaination above.!