Realty Pupil - Secrets of Real Estate

If you find yourself in the market to purchase a new home from a builder, and are considering buying without an agent, then there are a few things you’ll need to learn in order to avoid trouble.

First, chances are you’re going to need to find a builder. Doing so should be fairly easy through any of the following methods:

1. Local home builder’s association
2. Word of mouth.
3. Find neighborhoods where custom builders build and talk to homeowners (feel free to knock on doors…it works!)

If you think you need an Agent because you think your builder is screwing you, then you should really consider finding another builder. Homes are plentiful, and you should always be ready to walk away if something seems fishy.

If you find a builder that already has a listing agent. (Most big builders do) then proceed carefully. Attempt to contact the builder directly, and avoid dealing with the agent first. Most builder’s agents will try to double-dip on the commission if they find out you don’t have an agent, which will cost the builder extra money and save you nothing (as well as get you inferior representation!).

Once you’ve located a house/builder you’d like to deal with, if you need help analyzing the builder-friendly forms you are probably asked to sign, hiring a lawyer will certainly be far cheaper and much more effective than hiring an agent. A lawyer will also be in a far better position to advise you regarding some of the provisions you may want to include in a contract to best protect yourself and to build yourself some outs in case there is a problem with the builder down the road.

Whenever you contact a builder be sure to ask directly what exact benefits they can offer to you for not using an agent. Often they can offer upgrade incentives of 3 to 7%, or even price cuts of 2% to 5%. Don’t expect huge savings, but every little thousand counts!

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