two general questions

[meccos12]

Hey guys I have two questions to ask.

1.  I realize that upgrades on a new build can vary wildly among people, however lets just say for a 4600 sq ft house, what are the typical upgrades that most people get and what would be the range of costs.  Im just trying to get an idea of how much more to expect after the costs of the house.  Any examples of what you did personally or know of people doing would be appreciated. 

2.  also if an agent signed you into a new build, do you have to go with them? (especially if I was the one that told her about the new development)  Can you change agents?  My old agent signed me in and I do not want to work with her.  Plus she is not offering much incentives back to me, compared to some other agents who I actually like more.

 

[eyephone]

There are other previous threads regarding upgrades.

 

[irvinerealtor]

2.  also if an agent signed you into a new build, do you have to go with them? (especially if I was the one that told her about the new development)  Can you change agents?  My old agent signed me in and I do not want to work with her.  Plus she is not offering much incentives back to me, compared to some other agents who I actually like more.

You can change agents if you wish, but unfortunately you can't move your broker co-op over to another agent that might be offering you a better rebate, if that is your underlying question. This policy protects builders against multiple agents claiming that they've provided "procuring cause" and calling for commission.

-IrvineRealtor

 

[usctrojancpa]

Actually unless things changed from a few years ago (it may vary from builder to builder), buyers can change agents that they are registered them at the sales office as I represented two buyers after their registered with the builder.  The builder required a signed document from the broker of the first agent formally cancelling their relationship/agency with the buyers ( protected the builders from multiple agents trying to claim the broker co-op commission).  Builders also used to allow agent rebates as a credit to closing costs but that changed a few years ago so it's best to inquire with the salespeople of the builder.

In terms of your upgrade question, it has varied considerably for my new home clients.  Minimum has been 2-3% of the sales price and gone as high as 10%+ (does not include landscaping).  Typically most buyers will do flooring, shutters, and paint after they close escrow (along with landscaping). 

 

[meccos12]

What about changing agents on existing homes.  What if you saw a home with an agent in the past and now would like to proceed with a new agent. 

Thanks again for the helpful information. 

 

[eyephone]

What about changing agents on existing homes.  What if you saw a home with an agent in the past and now would like to proceed with a new agent. 

Thanks again for the helpful information.

He answered your questions. #readagain 

 

[usctrojancpa]

What about changing agents on existing homes.  What if you saw a home with an agent in the past and now would like to proceed with a new agent. 

Thanks again for the helpful information. 

Glad to help.  Nothing worse than a greedy realtor, they seem to forget that it's their customers that are the ones that provide them the opportunity to make money on commission.  Unless you have signed an exclusive agency agreement with a buyer's agent....you can use another agent to submit/negotiate an offer on a home if you want.  I've had a few clients that used Redfin to show them the homes and then they had me write up the offers and get the transaction closed for them. 

 

[irvinehomeowner]

I've had a few clients that used Redfin to show them the homes and then they had me write up the offers and get the transaction closed for them. 

Is that really fair? Why didn't they just use you to show them the home?

 

[usctrojancpa]

I've had a few clients that used Redfin to show them the homes and then they had me write up the offers and get the transaction closed for them. 

Is that really fair? Why didn't they just use you to show them the home?

It's not for me to say if it's fair or not as I wasn't the one that made that decision.  Both clients approached me and asked how they can maximize their commission rebate from me (my rebate is based upon how much work/effort is used to assist in purchasing a home) so they opted to use Redfin to show them the homes instead of having me show the homes.  There's no implied or explicit expectation from the buyer and agent that the agent the shows a buyer a home is going to be the one that writes the offer on it (if an offer is written on it), whether the agent showing that home is a Redfin agent or a non-Redfin agent. 

 

[bones]

I've had a few clients that used Redfin to show them the homes and then they had me write up the offers and get the transaction closed for them. 

Is that really fair? Why didn't they just use you to show them the home?

It's not for me to say if it's fair or not as I wasn't the one that made that decision.  Both clients approached me and asked how they can maximize their commission rebate from me (my rebate is based upon how much work/effort is used to assist in purchasing a home) so they opted to use Redfin to show them the homes instead of having me show the homes.  There's no implied or explicit expectation from the buyer and agent that the agent the shows a buyer a home is going to be the one that writes the offer on it (if an offer is written on it), whether the agent showing that home is a Redfin agent or a non-Redfin agent. 

Something about this doesn't sit right. Guess your "smart" clients found a loophole in your pricing structure 

 

[rkp]

Is that really fair? Why didn't they just use you to show them the home?

Is it really any different than finding something in a brick and mortar and then buying it online for cheaper?  Redfin can easily update their terms but that might make people hesitant of using them.  They basically have decided that they are a storefront for the houses and they hope the experience and rebate will be enough for you to buy through them. 

 

[usctrojancpa]

I've had a few clients that used Redfin to show them the homes and then they had me write up the offers and get the transaction closed for them. 

Is that really fair? Why didn't they just use you to show them the home?

It's not for me to say if it's fair or not as I wasn't the one that made that decision.  Both clients approached me and asked how they can maximize their commission rebate from me (my rebate is based upon how much work/effort is used to assist in purchasing a home) so they opted to use Redfin to show them the homes instead of having me show the homes.  There's no implied or explicit expectation from the buyer and agent that the agent the shows a buyer a home is going to be the one that writes the offer on it (if an offer is written on it), whether the agent showing that home is a Redfin agent or a non-Redfin agent. 

Something about this doesn't sit right. Guess your "smart" clients found a loophole in your pricing structure 

Not really....basically the less work I do = client get a larger commission rebate.  I try to align what I get paid with the time/effort that I spend (using a little bit of the principal/agent incentive structuring from the operations management class that I learned in my USC days). 

 

[usctrojancpa]

Is that really fair? Why didn't they just use you to show them the home?

Is it really any different than finding something in a brick and mortar and then buying it online for cheaper?  Redfin can easily update their terms but that might make people hesitant of using them.  They basically have decided that they are a storefront for the houses and they hope the experience and rebate will be enough for you to buy through them. 

+1  Bingo.  If Redfin wanted to discourage that, they could but that might come at too high of a cost. 

 

[bones]

I've had a few clients that used Redfin to show them the homes and then they had me write up the offers and get the transaction closed for them. 

Is that really fair? Why didn't they just use you to show them the home?

It's not for me to say if it's fair or not as I wasn't the one that made that decision.  Both clients approached me and asked how they can maximize their commission rebate from me (my rebate is based upon how much work/effort is used to assist in purchasing a home) so they opted to use Redfin to show them the homes instead of having me show the homes.  There's no implied or explicit expectation from the buyer and agent that the agent the shows a buyer a home is going to be the one that writes the offer on it (if an offer is written on it), whether the agent showing that home is a Redfin agent or a non-Redfin agent. 

Something about this doesn't sit right. Guess your "smart" clients found a loophole in your pricing structure 

Not really....basically the less work I do = client get a larger commission rebate.  I try to align what I get paid with the time/effort that I spend (using a little bit of the principal/agent incentive structuring from the operations management class that I learned in my USC days). 

Loophole meaning they figured out how to get the best rebate from you.  I know this redfin scenario is no skin off your back.

 

[rkp]

Something about this doesn't sit right. Guess your "smart" clients found a loophole in your pricing structure 

There are a lot of flat fee agents that will give back a massive amount of the commission.  I met many such agents and the going rate seems to be $2500 and give back the rest.  They will only write out the offers and offer no help on your negotiation strategy but if you are comfortable with the entire process, they are basically acting as a transaction service.  Even on a $500K house with 2.5% commission, you are looking at $10K in your pocket.

Is it right or wrong to use redfin or similar to tour houses and then use the flat fee agent to make an offer?  Tough to answer and everyone's view of morality is different.  Definitely nothing that redfin has stated prohibits you from doing so.  I see it like the costco return policy.  Their policy has changed over the years due to a bunch of people misusing it but is still favorable to many people for big ticket items.  Costco has made a decision that some misuse is still ok as the customer friendly policy is a big draw for many people.  People can misuse redfin but really, its their choice to allow it. 

 

[bones]

Yes. I'm familiar. REI is another example. I guess if you want to run your BoB stroller to the ground and then return it 4 years later, then that's cool. I think they also tweaked/changed their return policy recently too.

 

[qwerty]

Redfin is aware that people use them to see houses and make offers with someone else. If Redfin doesn't have a problem with it than no on else should either.

 

[irvinehomeowner]

There's no implied or explicit expectation from the buyer and agent that the agent the shows a buyer a home is going to be the one that writes the offer on it (if an offer is written on it), whether the agent showing that home is a Redfin agent or a non-Redfin agent. 

There isn't? Isn't that part of your work/effort model? If you were the one to show them the home wouldn't you have *some* expectation for your work/effort?

Is it really any different than finding something in a brick and mortar and then buying it online for cheaper? 

In my opinion it is. Real estate isn't exactly the same as brick and mortar retail and I think you know that.

I can look at something at a Best Buy without anyone else there taking time and effort to show it to me. For someone to drive out to a home, spend maybe 15 minutes to half an hour to tour the house with them (and if it's a good agent, pre-tour first and do things like turn on all the lights, look for things to point out etc), and maybe do that a few times, there is a certain cost and expectation there. Now maybe that's not as much of a case with Redfin but it's still work to me.

Redfin can easily update their terms but that might make people hesitant of using them.  They basically have decided that they are a storefront for the houses and they hope the experience and rebate will be enough for you to buy through them. 

Sure. But you are saying is that there is an *expectation* (where USC says there isn't) and if the buyer is going in knowing they won't use them at all, well, in my opinion that is a bit "unfair". To me, the Redfin website is the "storefront", once you call out an agent to show you a home, that's taking up someone's time.

I understand you guys see it differently but imagine if I asked USC to show me one home, told him I was really interested but then had another agent represent me in the purchase. I'm sure there would be a little "expecation" there.

 

[irvinehomeowner]

Redfin is aware that people use them to see houses and make offers with someone else. If Redfin doesn't have a problem with it than no on else should either.

So you know this for a fact? You've spoken to Redfin agents who are totally okay with this? I have a feeling you're just defending USC with a bit of hyperbole.

I should go post over at the Redfin forums and see what they say.

 

[eyephone]

Redfin is aware that people use them to see houses and make offers with someone else. If Redfin doesn't have a problem with it than no on else should either.

So you know this for a fact? You've spoken to Redfin agents who are totally okay with this? I have a feeling you're just defending USC with a bit of hyperbole.

I should go post over at the Redfin forums and see what they say.

Yeah you should. Hehe