How Builders pay buyer agent commission? (Houston, Sugar Land: comparable sales, sales, broker) - Texas (TX) - City-Data Forum

Mick Ph · 07-11-2009, 01:24 PM

I am in the market for buying home in Sugar Land and I am considering both existing and new homes. I want to start out first with new homes and don't think that I will need an agent to search for a new built home.
My question is when dealing with builders, do I get a better deal if I don't have an agent. Will builder take into account the 3% saving that they normally pay to the buyer agent (if I have one) at closing?

westres1 · 07-11-2009, 01:28 PM

No they will not discount you the 3% and it is important to have someone represent your needs even on a new build.

ijk keo · 07-12-2009, 01:29 PM

buying a home w/o a realtor is like entering a lawsuit w/o a lawyer, except you dont have to pay the realtor, the builder/seller does.

just my 2 cents

chris_ut · 07-12-2009, 03:54 PM

Most will give you the 3% but you will have to fight hard with them about it. Easiest thing to do is if you have a friend who is a RE Broker then just put their name down and have them cut you a check back less their taxes they owe on it. That is what I did. Just make sure you have good comps so you don't overpay, that is really the only thing an agent is going to do for you if you buy new.

Also note that many builders now give over 3% to agents or 3% +x dollars and you can negotiate with an agent to give you a rebate of the overage so that is sort of the best of both worlds.

Mick Ph · 07-12-2009, 04:41 PM

Thank you all for the good advises. I've never bought a home from builders before and not sure what a buyer agent will help. I can and prefer to do all the researches and dealing with builders myself.
I will search for an agent who is willing to work with me, and as "chris_ut" advised, the agent will probably in a better position to negotiate 3% commission with builders.
Chris also said "Just make sure you have good comps so you don't overpay". I am not sure if I understand what it means.

Cottonmather0 · 07-12-2009, 07:24 PM

Quote:

Originally Posted by Mick Ph

Thank you all for the good advises. I've never bought a home from builders before and not sure what a buyer agent will help. I can and prefer to do all the researches and dealing with builders myself.
I will search for an agent who is willing to work with me, and as "chris_ut" advised, the agent will probably in a better position to negotiate 3% commission with builders.
Chris also said "Just make sure you have good comps so you don't overpay". I am not sure if I understand what it means.

If you don't know what he means by "good comps" then you especially need to find an agent.

livinginkingwood · 07-12-2009, 09:11 PM

comps are comparable sales in the neighborhood, i.e. what a similar house to yours has sold for recently. If you are unable to find this out on your own I recommend you use an agent.

Jamesww · 07-13-2009, 05:57 AM

Houston is a unique market where you truly will not get the builder to give you the 3% in excess of anything you could have gotten simply by bargaining. Those builders that would cut prices if a buyer came direct got killed during the oil bust. So, now the builders that have worked a long time in the Houston market will not give you the break on the commission because they do not want to have word get out that they are doing so. This includes the national builders that have been in the market for sometime. Now you might be able to get something done if you use a newer national builder, but I would not hold my breath.