Developers real estate agent or independent real estate agent?

[Greenvalleyfan]

Originally Posted by KO Stradivarius

Yes, I bought two new construction homes in the past and didn't have an agent for either one. The agents on site were just sales reps for the builder, not actual realtors.

In any case, if realtors are involved, wouldn't the seller be paying the commission anyway? Sellers typically do, right? And it's the same amount whether there are one (full commission) or two agents (split 2 ways)?

In my opinion you don't need an agent. You are buying a new home. A new home in a new development has warranties built in from the get go. It's nonsensical unless you have a family member or close friend that's an agent that you want to help make a buck.

[MN-Born-n-Raised]

Originally Posted by KO Stradivarius

Yes, I bought two new construction homes in the past and didn't have an agent for either one. The agents on site were just sales reps for the builder, not actual realtors.

In any case, if realtors are involved, wouldn't the seller be paying the commission anyway? Sellers typically do, right? And it's the same amount whether there are one (full commission) or two agents (split 2 ways)?

I always thought the "sales reps" were also RE agents too. They are in our hood. Plus, a few agents in our hood left the builder and are now taking care of the resales. And, they are making bank!

If I were looking to build in development, I'd make a phone call BEFORE I visited the facility and let them know I wanted to work out a better deal upfront or you would bring in your agent. Then, see what they said. I'd try to negotiate a better deal like a free upgrade. Analogy: Often, I call the hotel directly after I see what the price is online to see if I can get a better deal. Sometimes the answer is yes, and sometimes it is actually more expensive than an online spot like Travelocity. But it can work out better by calling. Their 1st answer is generally higher until you remind them that you can get the room cheaper online and you thought you could split the savings with them. Often, that approach works.

That all said, I can give you an example of when I think it is a bad idea to bring in your own agent. When there was a lottery situation in late 2020 to early 2022 (and the 2005-ish era), builder agents were allocated properties. In our hood, there are 4 agents representing the builder and there could be 30 people on a list to buy a released lot. They split up the housing starts among the agents. Those lottery draws were never done in public. Gee, why??? All things being equal, if you were the builder or builder agent, would you want to give away 2% or $20K to a seller's agent? I had a friend who brought in her non-active agent (her sister) to help pad her pocket. Round after round, she lost the lottery bid. All the while the house that she wanted slowly went up $200K. She eventually tapped out. Always follow the money.