Relator for new construction homes
For new construction homes; is it mandatory to have a realtor? I was speaking to the sales person and he was mentioning how they need to give 2.5% of the home value to the agent; I tried asking if I don't bring an agent can that 2.5% be applied to the home cost or less than that the minute an agent is introduced the builder has to Shell out more money which they offset it in the selling cost of the home. I am almost convinced that I can bypass an agent and strike a better deal on the home price instead; what's the catch though?? What will I miss out on?
It’s never mandatory to have an agent
A lot actually. Unless you are well versed with ins and outs of the area, contacts with good inspectors, general property details etc, you can land yourself in a pretty bad deal. Granted none of these are insurmountable, you would need to do a lot of reading and research to acquire sufficient knowledge. Can it be done? Ofcourse, many do it. Do you have the time to put in that effort? To each their own.
The ones I am interested is a new construction
https://www.reddit.com/r/RealEstate/comments/8122qd/tips_for_buying_a_new_construction/ Read the first few answers. Also this is probably the biggest purpose of your life. Why would you want to risk? New construction or reputed builder doesn’t mean issues won’t arise. Edit- I meant biggest purchase.
Realtor fees are 3%. If you skip them, you need to hire a real estate lawyer. Costs about 1000-1500$ New homes are safe in general and most come with a warranty
They are negative 1.5% for the buyer lol
What does real estate lawyer provide?
It's not mandatory but would be stupid and expensive not to have an agent
Common sentiment I see on Blind: - “Should I hire a financial advisor?” - “Lol no, you can do this yourself, there are ETFs, mutual funds, computers, etc... it’s not 1970s anymore” VS - “Should I hire a real estate agent?” - “Yes, definitely, you don’t know what you’re doing, so you’ll land a bad deal without one”
Now I am scared to do it myself lol
Not sure how these are related. Investing in stocks is easy and has no fees to buy or sell as there is a highly liquid market. Real estate is very complex, illiquid, and has a ton of fees associated with each transaction so using a professional to help minimize costs and in most cases literally give you 1 to 2% of the purchase price in cash. Not to mention an agent has access to data on the MLS and market a regular person does not. This advice seems correct to me...
With investment you can learn as you go not same with buying a home
Usually agents will get a % and you can negotiate a kickback thru the agent so you get some of that too - win/win for both. Only applies if you already have a place in mind and the agent just has to put their name down. Also might be illegal??