Buying new home with a broker versus on your own

M

mms2020

Member
We are looking for a new home and were thinking about going with an agent when we go to see the new home for the first time. However, a friend mentioned that people who go without an agent are more likely to get the the new houses (given the low inventory and increasing interest in new houses), as the builder/sales staff gets to keep the commission which would otherwise go the the buyer's agent.

Is there any truth to this myth? Please chime in!   
Thanks
 
Take a agent with you.
Pre-qualify and join the priority list as soon as possible.
Seems like now there is a very long list for each community.
 
mms2020 said:
We are looking for a new home and were thinking about going with an agent when we go to see the new home for the first time. However, a friend mentioned that people who go without an agent are more likely to get the the new houses (given the low inventory and increasing interest in new houses), as the builder/sales staff gets to keep the commission which would otherwise go the the buyer's agent.

Is there any truth to this myth? Please chime in!   
Thanks
Click to expand...
Your friend doesn't know what they are talking about.  Your chances of getting a new home are equal whether you register with or without an agent.  The sales people at the home builders are not made extra commission if they sell a home to a buyer who comes without an agent versus one who comes to an agent.  The homebuilder builds a separate sales/marketing expense line item for broker co-op commissions before they start building.  All broker co-op commissions are paid out of that separate expense line item.  Why leave month on the table for the builders and miss out on getting your cut, take an agent and split the broker co-op with them. 
 
If you were going to look at a short sale, not bringing an agent may be good because you can cut a deal with the sellers agent who would then be more willing to sell it to you as he can make both sides of the commission.
 
Working with the Sellers Agent only is akin to bringing a knife to a gunfight. You might not get the house you want (because the Sellers Agent want's all the $$$$) but you will have an advocate on your side which is - to be crystal clear - priceless. The builder's agent, although not additionally compensated if you purchase without an outside agent, is working for the builders best interests in every case. Is it possible the builders agent is going to really go the extra mile for you? Depends on the Agent. There are some great ones out there, but when it comes to your needs versus the builder who signs the Agents pay check, who is going to come out ahead?

I'm closing a condo purchase tomorrow (God willing....) that was so fark'd up by the dual agent, the back story could not be believed even if you had the time to hear all of the gory details. Have I seen dual agency deals work out? Sure, rarely, but I can't count the times these deals have crash landed. Having a counselor guide you through the inner workings of a complex financial transaction is well worth it.

Why do the phrases "You get what you pay for" or "A defendant who represents himself has a fool for a client" always ring true? Because more often than not they ARE true. If you have a thick skin that can take bountiful abuse, if you can find peace in the face of likely disappointment, then buying without  personal representation might be a way forward. 
 
mms2020 said:
We are looking for a new home and were thinking about going with an agent when we go to see the new home for the first time. However, a friend mentioned that people who go without an agent are more likely to get the the new houses (given the low inventory and increasing interest in new houses), as the builder/sales staff gets to keep the commission which would otherwise go the the buyer's agent.

Is there any truth to this myth? Please chime in!   
Thanks
Click to expand...

We just bought new construction in Irvine and went in with a broker on the 1st visit. There's lots of friendly buyer agents here (like USCTrojan) that will share the broker co-op. We got close to 14K back.

We set it up that I spent about 2hrs with my agent that just "signed" me in at all the new communities (didn't even tour). After that I just went back to visit on my own.

If you don't do it you're just leaving money on the table.

The key on the waitlist is getting pre-qualified that's the only folks that the Sales people are interested in. And once you're on waitlist, make friends with the sales people and check-in often and early to know when the new release is and if there's any lots that fall out of escrow. We were able to "jump" the waitlist because a lot became open when someone fell out of escrow.

You need to be a bit aggressive in this market as yes the waitlists are long right now :(.

Best of luck!


 
mms2020 said:
We are looking for a new home and were thinking about going with an agent when we go to see the new home for the first time. However, a friend mentioned that people who go without an agent are more likely to get the the new houses (given the low inventory and increasing interest in new houses), as the builder/sales staff gets to keep the commission which would otherwise go the the buyer's agent.

Is there any truth to this myth? Please chime in!   
Thanks
Click to expand...

Not to insult your friend but this advice is moronic.  Hook up with USCTrojanCPA and work something out.  Visit the place with your agent and pre-qualify.  When a new phase opens up, they phone the names on the list.  First one gets there gets the opportunity to buy.  There are tons of money to be made on a new home for the builder.  Wait until you start looking at the options.

Spending a good deal of money in the Design Center means nothing.  The workers will still do things half-A$$ed and if something looks worn, they still use it.  Why waste it?

You may get a phone call during Christmas weekend when all the Asians are in Las Vegas.
 
Seconded the recommendation for USCTrojan.  I'm sure he will be more than fair in sharing the broker co-op and he is immensely helpful in answering any questions you may have and has a ton of experience.
 
snut100 said:
You may get a phone call during Christmas weekend when all the Asians are in Las Vegas.
Click to expand...

Wait. Is that an Asian thing?? I've noticed the same thing with my Asian (Thai) friends but I thought it was just them. Now I'm curious.
 
SoCal said:
snut100 said:
You may get a phone call during Christmas weekend when all the Asians are in Las Vegas.
Click to expand...

Wait. Is that an Asian thing?? I've noticed the same thing with my Asian (Thai) friends but I thought it was just them. Now I'm curious.
Click to expand...

Yep.  Wait until you go during Thanksgiving.  It's also a perfect time to go during Thanksgiving and Christmas.  Very cheap rates at all of the hotels. ;)
 
irvinehomeowner said:
I thought Vegas was expensive during TG, Christmas and New Years.
Click to expand...
I'm usually in Vegas on Christmas day, meeting up with my parents (yes, my father is asian).  I can't speak for the strip, but downtown is fairly quiet and hotel rates are cheap.  My first Christmas there, I was surprised by how depressing it was.  Just like clocks and windows, the casinos omit any hint of the season.  It's always sad to watch old people sitting alone for hours on end at a slot machine, slowly (or not!) losing the inheritance of whoever you wished they were with instead of being there.  But this image of sadness is really amplified on Christmas eve.  I often wonder wtf these old coots are doing there on that day, at that hour, then remind myself that I'm there too.  But at least my family is with me and we're having fun!  :)

New year's is a different story.  My parents are never in Vegas on the 1st, 'cause it's way too expensive. 
 
Also recommending USCtrojan as your agent, he did my home search and helped me with the purchase and tons of related issues and finding resources for things I needed help with. You can call me for a reference if you need to.

I wouldn't try to skip out on an agent in this case, to save a few thousand dollars, this is the biggest purchase of your life and trust me having a good agent will eliminate tons of headaches, and will pay for itself 10 times over. Trojan isn't your typical "tell you what you want to hear" agent, he is standup guy and is a whiz with the numbers, very personable and easy to work with, no pressure crap or lying, and will think creatively to find solutions to fit your needs.
 
Thanks to everyone for your input. Choice seems to be clear. We are already working with USCTrojan, but that was the concern raised by some one and I wanted to clarify it.

Thank you all!
 
You must log in or register to reply here.
Back
Top