Is a realtor worth it?

Question

Let's say that there is a home for sale for $170,000 by a new home builder for an inventory home. My realtor will get 3%. If the price was negotiated to 162,000 and that is as low as they will go, would I have been able to get the price reduced even further had I found the property without a realtor? My logic is that the realtor will be getting 3% of 162,000 or $4860, so would that mean without the realtor the builders might have been willing to reduce the price down to $157,140 since they would not have to pay the realtor?

Answer 1

Your logic is fine. However, new home builders invariably engage realtors to move the merchandise, so you won't save there. I have bought houses with and without realtors; realtors can save you a lot of time and effort, and they can definitely earn their keep. If you see a FSBO and want to buy it, however, you can do quite nicely without one.

Answer 2

you do not know until you pick up the phone.
the builder may have a team ready and give a discount.
if this is firmly the place you want to be then you will have to agree to the builders terms..and that is that..
you may or may not get a better deal with or without a realtor.
it may make no difference.
to go in thinking that a realtor fee to a new builder will make a discount arguement is ridiculous and you may end up paying full price and later finding your neighbor got a discount...
builders have a bottom line and $170 g may be that with or without a realtor.. so that being said..
is the builder reputable... because ..most are as reliable as the truck they drive away in.. we have here a series of high rises by developers..that leak.. and the "blame game" was played over and over..and the builder was as reliable as the truck he drove away in.....warranty and all
realtors carry heavy insurance policy (like doctors)..and protection may have been available there..

Answer 3

EVERYTHING is negotiable! They may be willing to deal .. but often without a Realtor the new home builder's agent (who is usually a Realtor themselves) gets BOTH commissions .. ie 6%.. 3 % to selling agent and 3% to listing agent..

Answer 4

It is certainly worth it. AS stated by another poster, you are NOT really dealing with the seller, but an agent they have hired. That person gets all of the commission, usually 6% or splits it with the buyers agent. A buyers agent will get you a better deal as any written offers he submits, no matter how low, have to be submitted. When dealing with a dual agent they are going to try to get you to buy high. You will only gain and loose nothing with an agent.

Also, remember when comparing money, as you have, the commission is a write off for the seller, they are not "out" as much as it appears.

Answer 5

You'll find that you'll usually get better incentives from new construction without a Realtor. That said, you're giving up full control to the construction company where an agent/Realtor would have looked outfor your best interest.

Another option is to have your agent pay part of their commission to you.

Good luck.

Regards

Answer 6

Yes, but you'll never know now.