If you're buying/building a new home who pays the realtor?

Question

I dont want any portion of my home purchase price to be towards a realtor's commission unless it's being paid by the builder out of their own profit. why would i need a realtor for a new home

Answer 1

Customary in Texas, as in many states, for the seller (including a builder) to pay the buyer agent commissions.

Years ago, builders instituted separate accounts from which to pay the realtor fees because they didn't want the builder's on-site sales rep to try and cut the realtor out of the deal because so many builders depend on realtors to bring in customers. So, that would have been more harmful than helpful. Regardless of what is negotiated, the realtor fees don't play into your final sales price.

Why do you need a realtor on a new home? You really don't, but then again you really don't need one on any home. You can buy or sell without one just as I can self medicate myself and take my chances that I understand enough about medicine to do it properly. Granted, many realtors are not worth their pay, but many educated, skilled realtors are. Consider a few of these questions and then ask why you need qualified realtor.
1. How can reserved mineral rights affect your property?
2. What do the different schedules on a title commitment mean and what is each schedules purpose?
3. What happens if you're given a document at closing that places you in a position of liability, and you don't want to sign it.
4. What specific items in your warranty deed should you be aware of?
5. If you're purchasing a home in a M.U.D., what should you know about their rights?
6. How do you calculate prorations for the closing statement and what items are prorated?
7. What are the two most important items to look for in your loan papers?

I can go on, but I hope you get my point.

And finally, if it doesn't cost you anything to use the services of a professional (assuming you do ultimately locate one in the area of your purchase), why would you not hire an agent.

Answer 2

The Developer/Builder has already caulculated a Realtor's commision when pricing the new home. Realtors bring a significant portion of sales to them so it is good business to co-operate with Brokers and Realtors.

You are not paying a cent of the Realtors commision as the buyer! Regardless if you use one or not the price does not change the Developer/Builder just profits more. Why not have the proffesional advice & support of a Realtor in the transaction?

Even if it is a New Home sale a Realtor will still provide allot of assistance in the process.

Best of luck!

Answer 3

Realtors fees are paid from the sales price by the escrow managers .
If the sellers have hired an RE Agency and they choose to , then their commission is factored in .

With a new house , there is just the price and you really don't know how the builder set it or how it breaks down .

It is what it is .

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Answer 4

Developers hire Realtors to market their properties and represent their interests. Builders build houses, that is what they do. Realtors sell houses, that is what they do.

You need a Realtor to negotiate the best deal for you. If you are using the developer's Realtor, that Realtor represents the developer, not you.

Answer 5

realtors, real estate agents, and brokers help the builder sell the homes he builds, and takes their clients (prospective buyers) thru the new homes just as if they were walking them thru an open house.

There is no realtor/agent commission unless you initially went thru a realtor/agent to find the home builder (and his homes). Which I suspect you have not done.

In every transaction, anyone who buys or sells a home should also have a real estate attorney working for them.

Answer 6

The seller always pays the REALTOR not the buyer unless otherwise agreed upon!

Answer 7

The seller pays the commissions.