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You said: Some Buyers claim they save money becasuse no commission is involved -- is that ever true?
I say: the buyer will for sure not get the perks that I could negotiate, but I doubt that they will ever admit it...they will never know what they could have gotten.
The builders rep has now become their best friend and convinced them what a great deal they are getting....Baloney that the buyer is believing...hook, line, and sinker.
Sterling Heights, MI
Gary - I am not aware of buyers getting any better deal by going directly to a builder. In my area, if the buyer does not work with a buyer's agent, the builder's agent gets both sides of the commission. There is no savings on commission for the buyer. The buyer gets exactly the same deal, and they are not represented at all in the transaction.
The results may vary by market area and the specific builder. Buyers in our market are better protected when they use a buyer agent and the builder pays the commission.
Great question and answers.
I am sure they THINK they are getting a better deal.
When people go direct they usually end up contacting me to help them with the problems they are having with the builder. I doubt they got a break on the price but unrepresented, they are at the builders’ mercy.
They never get a good deal going directly to the builder. I was a new home sales agent for 20 years and I had many people come in and ask if I do not bring an agent in to the transaction can I get a deal. The build told their agents to say NO it is better if you have an agent.
I sell a lot of new construction and normally the builder will not discount because of commission not being paid. The first responsibility of the builder is to protect comps and help raise prices because their cost of land and materials as well as labor is increasing. They just make more money and on that I can speak from experience.
Seldom and it is very risky
Gary Coles (International Referrals) I haven't seen it.
yes to going direct and it can make the difference of getting a little extra perk here and there when no agent is involved
I have seen that even though the builders swear that they don't make any offers eliminating Realtors.
I have heard of a builder throwing in an upgrade for free. But it is not really free, I have seen where the commission where the builder is getting both sides of the transaction settle for 5.5% commission and use the .5% towards the upgrade. Its just moving around money.