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Real Estate Advice Column

OCtoSV

Active member
Sounds like SNA traffic is way down - last time I flew out of there which I think was pre-pandemic I had to endure a 1 hr sec line
 

Hugo Township

Active member
OC will rue the day they voted against that airport. It would have completely altered the economic dynamic. Instead OC is capped out as an economic force without an Intl airport. No one wants to drive 2 hrs to LAX to catch a non stop United flight to the east coast.

Not quite, UA flies SNA-EWR a few times a day and AA flies their 321T premium transcon product to JFK (and apparently yields are down but 1x/daily is kind of a joke of a business frequency).

But it's the other destinations that require connecting that annoys me. I fly at least once a month on average to other places like DCA, BOS, MIA, MCO, PHL. I'm not asking for a gigantic megahub like LAX, but El Toro could have been substantially bigger with a runway to accommodate more planes and more frequencies. I think El Toro could have been a SAN-sized airport with destinations to match.
 

brergnat

Member
Does Lennar give agent commissions? Is this one of the ones I need to bring a realtor on first visit or can we just go check out some model homes on our own?
 

marmott

Active member
A quick call to the sales office is probably the best way to check if they have agent commission. My best guess is they would have reinstated them as things slow down.
 

CalBears96

Well-known member
Does Lennar give agent commissions? Is this one of the ones I need to bring a realtor on first visit or can we just go check out some model homes on our own?
I remember someone mentioned buying at Solis Park and they gave agent commission. However, you do need to bring the agent the first time you visit and give Lennar your information. You would fill out the agent's name, company and contact info.
 

usctrojancpa

Well-known member
Does Lennar give agent commissions? Is this one of the ones I need to bring a realtor on first visit or can we just go check out some model homes on our own?

Yes, all builders are providing buyer agent commissions now. The quicker move-in homes are offered an even higher than normal broker co-op (agent) commission. The rule is that on your first physical visit you do have to go with your agent to register in order for your agent to qualify for the commission.
 
Yes, all builders are providing buyer agent commissions now. The quicker move-in homes are offered an even higher than normal broker co-op (agent) commission. The rule is that on your first physical visit you do have to go with your agent to register in order for your agent to qualify for the commission.
Is there a way to just negotiate they give that commission to you instead if you register with no broker.
 

usctrojancpa

Well-known member
Is there a way to just negotiate they give that commission to you instead if you register with no broker.

You can try but the buyer agent commission comes from a different budget pool than other incentives. Remember that design center credits are worth about 50 cents on the dollar at max because most of the options are overpriced and a financed buyer can only use up a closing cost credit of up to their closing costs so there's a limit there. The builder is be loathe to reduce the price by the buyer agent commission because it'll mess with their closed comps. A commission rebate from the agent to the buyer is non-taxable and given right after closing so they can use it for whatever they want and there's no limit to the rebate (yes, agent registrations do state the agent will not give any of the commission to the buyer in escrow or after close but I'd love to see any builder enforcing that against an agent who gives a rebate to their buyer after closing).
 
You can try but the buyer agent commission comes from a different budget pool than other incentives. Remember that design center credits are worth about 50 cents on the dollar at max because most of the options are overpriced and a financed buyer can only use up a closing cost credit of up to their closing costs so there's a limit there. The builder is be loathe to reduce the price by the buyer agent commission because it'll mess with their closed comps. A commission rebate from the agent to the buyer is non-taxable and given right after closing so they can use it for whatever they want and there's no limit to the rebate (yes, agent registrations do state the agent will not give any of the commission to the buyer in escrow or after close but I'd love to see any builder enforcing that against an agent who gives a rebate to their buyer after closing).
Would a reduction in the loan balance work similarly? Assuming you use the lender partnering with a new builder, asking for the referral credit to go to loan seems like a win win.
 

usctrojancpa

Well-known member
Would a reduction in the loan balance work similarly? Assuming you use the lender partnering with a new builder, asking for the referral credit to go to loan seems like a win win.

That would be considered equity and the lender will not allow for that. Credits to the buyer are limited by the lender to actual closing costs, any amounts over the actual closing costs are considered equity and are disallowed by the lender.
 
That would be considered equity and the lender will not allow for that. Credits to the buyer are limited by the lender to actual closing costs, any amounts over the actual closing costs are considered equity and are disallowed by the lender.
Hmmm. makes sense. How about points then? We could ask builder to load up on points?
 

usctrojancpa

Well-known member
Hmmm. makes sense. How about points then? We could ask builder to load up on points?

You could try but as you keep buying down the interest rate the buydown to the next 1/8% down gets exponentially expensive plus I always tell my clients to never buy down their interest rates and wait to refi when rates go lower because they almost always do.
 
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