Builder Homes

M

mprince_IHB

New member
Do the broker's fees still work the same if you buy a home from a builder? Also, can you use a service like Redfin to buy a home from a builder if the house is listed on it in order to save on some of the fees? Another question is how much can one expect to pay (percentage wise) when buying a house from a builder?
 
If you are saavy enough, you might be able to negotiate without a buyer's agent and talk down the fees in lieu of them having to pay the buyer's agent.
 
[quote author="mprince" date=1251168037]<span style="color: blue;">Do the broker's fees still work the same if you buy a home from a builder?</span> <span style="color: red;">Also, can you use a service like Redfin to buy a home from a builder if the house is listed on it in order to save on some of the fees?</span> <span style="color: green;"> Another question is how much can one expect to pay (percentage wise) when buying a house from a builder</span>?</blockquote>


<span style="color: blue;">Brokers are offered fees coming from a separate pool (the marketing budget) from builders, if they are offered.

In fast-selling times, builders did not offer any "co-op" remuneration. Most of the builders do offer compensation currently, but only if you have not previously signed onto their website or visited their premises. The requirement is that the broker accompany you for your first visit.</span>

<span style="color: red;">I do not know Redfin's policy on new builds, but I would guess they do operate the same way as they normally do, offering a percentage back to the buyer.

Many/most reasonable brokers offer this same type of arrangement, as well, if you ask for it.</span>



<span style="color: green;">I'm not sure I understand your last question, but I think you are asking about how much is typically financed?

If so, it's the same as any other transaction. As long as you qualify, they will allow most any program from the 3.5% FHA to 20% conventional to 100% cash. </span>



It is always the package and not just the price. But price is always a big part of the package.



-IR2
 
[quote author="mprince" date=1251168037]Do the broker's fees still work the same if you buy a home from a builder? Also, can you use a service like Redfin to buy a home from a builder if the house is listed on it in order to save on some of the fees? Another question is how much can one expect to pay (percentage wise) when buying a house from a builder?</blockquote>


on your 2nd question i have not seen builders use redfin as they have their own marketing department and when you show with your broker the broker gets the flat spiff and they builder will have an incentive package for you but no you will not save anything on fees either way.



Third question the agent works for the builder who is the broker. If it is a broker referral the broker gets a flat rate for referring you and does nothing else and gets paid when you close. If no broker still same incentive deal the only fees you will pay are recurring and non recurring closing costs which are based on what type of loan you are doing but you incentive may be able to pay these depending on the loan. Please use all incentive money to pay closing costs and points or any financial fees as you can write them off. There is no percentage split etc. with a new home purchase because the broker is paid a referral fee nothing more.
 
[quote author="mprince" date=1251494095]Excuse my lack of knowledge but what are the closing costs if I'm a cash buyer when purchasing from a builder?</blockquote>


The exact same if you financed it.
 
[quote author="no_vaseline" date=1251495209][quote author="mprince" date=1251494095]Excuse my lack of knowledge but what are the closing costs if I'm a cash buyer when purchasing from a builder?</blockquote>


The exact same if you financed it.</blockquote>
Not quite No_Vas, closing costs are lower if there is an all cash purchase. A lender's title policy is not required (buyer pays for this), recording and notary fees are lower due to no lender documents, and no sub-escrow tie-in fees.
 
By fees I meant if I don't have a real estate agent and I negotiate with the broker who is working for the builder do I pay them the 6% commission or does this work differently when buying from a builder?
 
[quote author="mprince" date=1251599264]By fees I meant if I don't have a real estate agent and I negotiate with the broker who is working for the builder do I pay them the 6% commission or does this work differently when buying from a builder?</blockquote>


Nope no 6% commision. If you are all cash it would just be taxes the builer has paid to the end of June, esrow and tile etc. Just ask the builder and the will give you a print out with 100 down showing the remaining cash to close.
 
[quote author="usctrojanman29" date=1251547565][quote author="no_vaseline" date=1251495209][quote author="mprince" date=1251494095]Excuse my lack of knowledge but what are the closing costs if I'm a cash buyer when purchasing from a builder?</blockquote>


The exact same if you financed it.</blockquote>
Not quite No_Vas, closing costs are lower if there is an all cash purchase. A lender's title policy is not required (buyer pays for this), recording and notary fees are lower due to no lender documents, and no sub-escrow tie-in fees.</blockquote>


So, we're talking about a $1000 discount on a purchace of a couple of hundred grand?
 
[quote author="no_vaseline" date=1251717353][quote author="usctrojanman29" date=1251547565][quote author="no_vaseline" date=1251495209][quote author="mprince" date=1251494095]Excuse my lack of knowledge but what are the closing costs if I'm a cash buyer when purchasing from a builder?</blockquote>


The exact same if you financed it.</blockquote>
Not quite No_Vas, closing costs are lower if there is an all cash purchase. A lender's title policy is not required (buyer pays for this), recording and notary fees are lower due to no lender documents, and no sub-escrow tie-in fees.</blockquote>


So, we're talking about a $1000 discount on a purchace of a couple of hundred grand?</blockquote>


Cmon No Vas - your great at dishing it out, he was just clarifying. Its ok to be wrong some times. Lets not be so bitter all the time.
 
[quote author="qwerty" date=1251719376][quote author="no_vaseline" date=1251717353][quote author="usctrojanman29" date=1251547565][quote author="no_vaseline" date=1251495209][quote author="mprince" date=1251494095]Excuse my lack of knowledge but what are the closing costs if I'm a cash buyer when purchasing from a builder?</blockquote>


The exact same if you financed it.</blockquote>
Not quite No_Vas, closing costs are lower if there is an all cash purchase. A lender's title policy is not required (buyer pays for this), recording and notary fees are lower due to no lender documents, and no sub-escrow tie-in fees.</blockquote>


So, we're talking about a $1000 discount on a purchace of a couple of hundred grand?</blockquote>


Cmon No Vas - your great at dishing it out, he was just clarifying. Its ok to be wrong some times. Lets not be so bitter all the time.</blockquote>


Buddy, I'm wrong a lot. Certainly I'm wrong here. I'm just trying to quantify how much I'm wrong.
 
You must log in or register to reply here.
Back
Top