Do you ever see Buyers that get a better deal by going directly to a builder without using an agent?

Question

Gary Coles (International Referrals), Latin America Real Estate (Venture Realty International)

Answers Subscribe to Answers

Sort

Rainmaker
613,494

Eve Alexander

Buyers Broker of Florida - Tampa, FL

Exclusively Representing ONLY Tampa Home Buyers

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.

Eve

Nov 05, 2015 05:01 AM

Upvote

1

Vera Gonzalez

Sterling Heights, MI

Rainmaker
979,596

Troy Erickson AZ Realtor (602) 295-6807

HomeSmart - Chandler, AZ

Your Chandler, Ahwatukee, and East Valley Realtor

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.

Nov 05, 2015 04:40 AM

Upvote

1

Michael Scruggs

Houston, TX

Rainmaker
7,864,182

Roy Kelley

Retired - Gaithersburg, MD

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.

Nov 05, 2015 04:19 AM

Upvote

1

Michael Scruggs

Houston, TX

Rainmaker
1,598,452

Valeria Mola

SIB Realty - Miami, Sunny Isles Beach - Sunny Isles Beach, FL

305-607-0709 SIB Realty Condos for Sale and Rent

Yes

Great question and answers.

Nov 02, 2019 03:53 PM

Upvote

Ambassador
6,419,449

Bob Crane

Woodland Management Service / Woodland Real Estate, KW Diversified - Stevens Point, WI

Forestland Experts! 715-204-9671

I am sure they THINK they are getting a better deal.

Jan 23, 2019 08:18 PM

Upvote

Rainmaker
3,071,489

Tony and Suzanne Marriott, Associate Brokers

Serving the Greater Phoenix and Scottsdale Metropolitan Area - Scottsdale, AZ

Haven Express @ Keller Williams Arizona Realty

No

Nov 05, 2015 10:37 PM

Upvote

Rainmaker
617,935

David Gibson CNE, 719-304-4684 ~ Colorado Springs Relocation

Colorado Real Estate Advisers LLC - Colorado Springs, CO

Relocation, Luxury & Lifestyle residential

Gary,
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.

Nov 05, 2015 04:21 PM

Upvote

Rainer
67,369

Evelyn M Epperson

Coldwell Banker Residential Brokerage - Johns Creek, GA

A Tradition Of [Excellence, Trust & Service]

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.

Nov 05, 2015 09:47 AM

Upvote

Rainmaker
1,712,776

Joe Pryor

The Virtual Real Estate Team - Oklahoma City, OK

REALTOR® - Oklahoma Investment Properties

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.

Nov 05, 2015 06:04 AM

Upvote

Rainmaker
3,986,308

William Feela

WHISPERING PINES REALTY - North Branch, MN

Realtor, Whispering Pines Realty 651-674-5999 No.

Seldom and it is very risky

Nov 05, 2015 05:42 AM

Upvote

Rainmaker
1,466,257

Michael Setunsky

Woodbridge, VA

Your Commercial Real Estate Link to Northern VA

Gary Coles (International Referrals) I haven't seen it.

Nov 05, 2015 05:24 AM

Upvote

Rainmaker
2,784,736

Richie Alan Naggar

people first...then business Ran Right Realty - Riverside, CA

agent & author

yes to going direct and it can make the difference of getting a little extra perk here and there when no agent is involved

Nov 05, 2015 05:23 AM

Upvote

Rainmaker
2,310,576

Belinda Spillman

Aspen Lane Real Estate Colorful Colorado - Aurora, CO

Colorado Living!

I have seen that even though the builders swear that they don't make any offers eliminating Realtors.

Nov 05, 2015 04:53 AM

Upvote

Rainer
61,641

Renee Paray

Coldwell Banker Realty - Blue Bell, PA

REALTOR

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.

Nov 05, 2015 04:46 AM

Upvote

Back to Top

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.

Eve
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.
Gary,
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.
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.