Discount on NEW home if not using a Realtor
Apr 4th 2011, 6:47 pm
#1
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Discount on NEW home if not using a Realtor
Hi - has anyone negotiated a decent discount on a new home if not using a Realtor?
Way I see it is that for new build why use a realtor, why not pocket the money yourself in upgrades,money off or accessories?
Thanks,
Stuart.
Way I see it is that for new build why use a realtor, why not pocket the money yourself in upgrades,money off or accessories?
Thanks,
Stuart.
Apr 4th 2011, 6:55 pm
#2
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Re: Discount on NEW home if not using a Realtor
No.
If the developer is using a broker then their broker will just pocket the commission that would have gone to your realtor. And remember, they are working for the developer.
TBH if you are new to the country, don't understand Canadian law or home buying practice and try to deal directly with a developer you'll get eaten alive.
If the developer is using a broker then their broker will just pocket the commission that would have gone to your realtor. And remember, they are working for the developer.
TBH if you are new to the country, don't understand Canadian law or home buying practice and try to deal directly with a developer you'll get eaten alive.
Apr 4th 2011, 7:05 pm
#3
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Re: Discount on NEW home if not using a Realtor
It's highly unlikely you can negotiate a discount on a new build unless perhaps it's on of the last few unsold in the development. Generally speaking you would not engage a realtor in the purchase of a new build. Who would pay the realtor? It would have to be you because the builder certainly wouldn't.
Apr 4th 2011, 7:10 pm
#4
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Re: Discount on NEW home if not using a Realtor
In BC spec builders often use realtors to sell their homes.
Apr 4th 2011, 7:15 pm
#5
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Re: Discount on NEW home if not using a Realtor
It's highly unlikely you can negotiate a discount on a new build unless perhaps it's on of the last few unsold in the development. Generally speaking you would not engage a realtor in the purchase of a new build. Who would pay the realtor? It would have to be you because the builder certainly wouldn't.
Realtor-no you don't need a realtor. We have to factor in when paying a realtor. All of our homes have dropped $20,000 already so we can look at pricing for sure when you choose a home with us.
So it would appear there maybe some movement (this is in Calgary)....
Apr 4th 2011, 7:43 pm
#6
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Re: Discount on NEW home if not using a Realtor
‘Will you walk into my parlour?’ said the spider to the fly,
‘ ’Tis the prettiest little parlour that ever you did spy,
The way into my parlour is up a winding stair,
And I’ve got many curious things to show when you are there.’
‘Oh, no, no,’ said the little fly, ‘to ask me is in vain,
For whoever goes up your winding stair can ne’er come down again.’
Apr 4th 2011, 9:22 pm
#7
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Re: Discount on NEW home if not using a Realtor
I represent lots of people who buy new builds and many of the builders in Calgary are part of the Realtor / Builder Partnership Program. If the builder is part of this program, they agree to a code of conduct which states there can only be one price for a home.
Here is the linkCODE OF CONDUCT(between Builders and REALTORS®)
Of the Builders and REALTORS® that subscribe to this program, so it must be
that they adhere to the Code of Conduct.
Registration Process
1. Upon initial contact in the Builder’s show home, the REALTOR® must accompany the prospective purchaser and provide the Builder’s representative with a signed and completed “BUILDER/REALTOR® Registration Form”. (A copy must be provided to each party).
2. Both REALTORS® and Builders will have access to the blank BUILDER/REALTOR® Registration Forms that must be filled out in its entirety and signed by the REALTOR® and Builder representative to be valid.
3. All terms and commissions specific to the Builder must be detailed on the
Registration Form.
4. The signed Registration Form will protect the REALTORS® fee in this community or project only. Should the prospective purchaser wish to buy in another subdivision, the above process must be repeated.
5. Registration will be valid from the date on the Registration Form, to the date specified in the “Expiry Date of Registration” area, which is mutually agreed upon by the Builder and the REALTOR®.
6. If the Builder or any of the Builder’s representatives had any previous discussions with the prospective client/purchaser, they reserve the right not to sign the register.
Sales Process
The Builder agrees, by adhering to the Code of Conduct, that there can only be one price for the home, whether sold in-house or by a participating REALTOR®.
Here is the linkCODE OF CONDUCT(between Builders and REALTORS®)
Of the Builders and REALTORS® that subscribe to this program, so it must be
that they adhere to the Code of Conduct.
Registration Process
1. Upon initial contact in the Builder’s show home, the REALTOR® must accompany the prospective purchaser and provide the Builder’s representative with a signed and completed “BUILDER/REALTOR® Registration Form”. (A copy must be provided to each party).
2. Both REALTORS® and Builders will have access to the blank BUILDER/REALTOR® Registration Forms that must be filled out in its entirety and signed by the REALTOR® and Builder representative to be valid.
3. All terms and commissions specific to the Builder must be detailed on the
Registration Form.
4. The signed Registration Form will protect the REALTORS® fee in this community or project only. Should the prospective purchaser wish to buy in another subdivision, the above process must be repeated.
5. Registration will be valid from the date on the Registration Form, to the date specified in the “Expiry Date of Registration” area, which is mutually agreed upon by the Builder and the REALTOR®.
6. If the Builder or any of the Builder’s representatives had any previous discussions with the prospective client/purchaser, they reserve the right not to sign the register.
Sales Process
The Builder agrees, by adhering to the Code of Conduct, that there can only be one price for the home, whether sold in-house or by a participating REALTOR®.
Apr 4th 2011, 9:53 pm
#8
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Re: Discount on NEW home if not using a Realtor
I represent lots of people who buy new builds and many of the builders in Calgary are part of the Realtor / Builder Partnership Program. If the builder is part of this program, they agree to a code of conduct which states there can only be one price for a home.
Here is the linkCODE OF CONDUCT(between Builders and REALTORS®)
Of the Builders and REALTORS® that subscribe to this program, so it must be
that they adhere to the Code of Conduct.
Registration Process
1. Upon initial contact in the Builder’s show home, the REALTOR® must accompany the prospective purchaser and provide the Builder’s representative with a signed and completed “BUILDER/REALTOR® Registration Form”. (A copy must be provided to each party).
2. Both REALTORS® and Builders will have access to the blank BUILDER/REALTOR® Registration Forms that must be filled out in its entirety and signed by the REALTOR® and Builder representative to be valid.
3. All terms and commissions specific to the Builder must be detailed on the
Registration Form.
4. The signed Registration Form will protect the REALTORS® fee in this community or project only. Should the prospective purchaser wish to buy in another subdivision, the above process must be repeated.
5. Registration will be valid from the date on the Registration Form, to the date specified in the “Expiry Date of Registration” area, which is mutually agreed upon by the Builder and the REALTOR®.
6. If the Builder or any of the Builder’s representatives had any previous discussions with the prospective client/purchaser, they reserve the right not to sign the register.
Sales Process
The Builder agrees, by adhering to the Code of Conduct, that there can only be one price for the home, whether sold in-house or by a participating REALTOR®.
Here is the linkCODE OF CONDUCT(between Builders and REALTORS®)
Of the Builders and REALTORS® that subscribe to this program, so it must be
that they adhere to the Code of Conduct.
Registration Process
1. Upon initial contact in the Builder’s show home, the REALTOR® must accompany the prospective purchaser and provide the Builder’s representative with a signed and completed “BUILDER/REALTOR® Registration Form”. (A copy must be provided to each party).
2. Both REALTORS® and Builders will have access to the blank BUILDER/REALTOR® Registration Forms that must be filled out in its entirety and signed by the REALTOR® and Builder representative to be valid.
3. All terms and commissions specific to the Builder must be detailed on the
Registration Form.
4. The signed Registration Form will protect the REALTORS® fee in this community or project only. Should the prospective purchaser wish to buy in another subdivision, the above process must be repeated.
5. Registration will be valid from the date on the Registration Form, to the date specified in the “Expiry Date of Registration” area, which is mutually agreed upon by the Builder and the REALTOR®.
6. If the Builder or any of the Builder’s representatives had any previous discussions with the prospective client/purchaser, they reserve the right not to sign the register.
Sales Process
The Builder agrees, by adhering to the Code of Conduct, that there can only be one price for the home, whether sold in-house or by a participating REALTOR®.
So what is this COC actually saying, that if a Realtor shows a 'prospective' buyer the home then the agreement is signed and the Realtor gets their cut (that makes sense to me)?
What if a buyer goes into a Showhome without a Realtor, and proceeds to purchase the home, to my way of thinking the sales staff wouldn't give a stuff if a Realtor was used or not?
I don't understand the 'there can only be one price for the home'?
Thanks.
Apr 4th 2011, 10:05 pm
#9
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Re: Discount on NEW home if not using a Realtor
Hi Sam - I take it your a Realtor?
So what is this COC actually saying, that if a Realtor shows a 'prospective' buyer the home then the agreement is signed and the Realtor gets their cut (that makes sense to me)?
What if a buyer goes into a Showhome without a Realtor, and proceeds to purchase the home, to my way of thinking the sales staff wouldn't give a stuff if a Realtor was used or not?
I don't understand the 'there can only be one price for the home'?
Thanks.
So what is this COC actually saying, that if a Realtor shows a 'prospective' buyer the home then the agreement is signed and the Realtor gets their cut (that makes sense to me)?
What if a buyer goes into a Showhome without a Realtor, and proceeds to purchase the home, to my way of thinking the sales staff wouldn't give a stuff if a Realtor was used or not?
I don't understand the 'there can only be one price for the home'?
Thanks.
I'm not trying to pick a fight, just understand the process.
Thanks.
Apr 4th 2011, 10:27 pm
#10
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Posts: 11,682
Re: Discount on NEW home if not using a Realtor
If you are dealing directly with the developer's sales team you are dealing with highly trained negotiators who are intent on extracting the maximum amount of dollars from you for the least cost to them. You may be an expert negotiator yourself but if you don't understand the environment in which you are negotiating you have no hope of getting the best deal possible.
I honestly think I am giving you sincere and genuine advice here. It is foolish to go into such a big transaction at such a huge disadvantage of not understanding the system and not having an expert to represent you.
Apr 4th 2011, 11:39 pm
#11
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Re: Discount on NEW home if not using a Realtor
Hi Sam - I take it your a Realtor?
So what is this COC actually saying, that if a Realtor shows a 'prospective' buyer the home then the agreement is signed and the Realtor gets their cut (that makes sense to me)?
What if a buyer goes into a Showhome without a Realtor, and proceeds to purchase the home, to my way of thinking the sales staff wouldn't give a stuff if a Realtor was used or not?
I don't understand the 'there can only be one price for the home'?
Thanks.
So what is this COC actually saying, that if a Realtor shows a 'prospective' buyer the home then the agreement is signed and the Realtor gets their cut (that makes sense to me)?
What if a buyer goes into a Showhome without a Realtor, and proceeds to purchase the home, to my way of thinking the sales staff wouldn't give a stuff if a Realtor was used or not?
I don't understand the 'there can only be one price for the home'?
Thanks.
With regards to "there can only be one price" Builders who are part of the program have agreed that the price of the home will be no different if you use a Realtor or not.
If a Buyer goes into a show home without a Realtor you are right, they don't give a stuff (not about the buyer anyway)
The benefits of using a Realtor for a new build are exactly the same as using a Realtor for the purchase of a re-sale property. If it costs you nothing to be represented by a Realtor, why would you not want to be represented. Remember builders often can't sell new builds and end up listing the homes on the MLS with a Realtor. The reason many new builds do not sell is they are overpriced and I will tell you if the property is overpriced (the builder won't) I also spend a lot of time discussing re-sale value, location, which up-grades you need, good and bad builders, the list is endless.
Additionally you are protected when you work with a REALTOR for a number of reasons:
* REALTORS must adhere to a strict Code of Ethics and Standards of Business Practice; your guarantee of professional conduct and service excellence. Builders agents are not Realtors and they are working for the builder not you.
* All REALTORS carry errors and omissions insurance; If we get it wrong (I haven't yet) you can make a claim against us.
* The Real Estate Assurance Fund is available to you in the rare event of fraud, or breach of trust by a REALTOR®. It is your protection against financial loss. Yes there are some bent Realtors
* A licensed brokerage supervises the business conduct of all REALTORS to ensure their compliance with Alberta law.
JonboyE has given some very sound advice here and at the end of the day the decision to use a Realtor or not is with the buyer. If you have found a builder who will genuinely do a better deal if you don't use a Realtor you have a decision to make.
Another topic that generates much discussion is most builders like you to use their own lawyer and the builder will not recommend an independent home inspection before you take possession.
Apr 5th 2011, 12:02 am
#12
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Posts: 13,374
Re: Discount on NEW home if not using a Realtor
If realtors acting for purchasers really represented their client's best interests there is no way that they would ever advise them to signs contracts that favour the vendor as they do.
Apr 5th 2011, 1:04 am
#13
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Re: Discount on NEW home if not using a Realtor
I agree that this doesnt add up.
Rather than see anything up to 5% of the cost of the home go to a realtor, I'd rather pay a lawyer a fee of "x" to go over the contracts.
In terms of knowing the market price for a property, it doesnt really take long to gain an understanding if something is overpriced or not.
Rather than see anything up to 5% of the cost of the home go to a realtor, I'd rather pay a lawyer a fee of "x" to go over the contracts.
In terms of knowing the market price for a property, it doesnt really take long to gain an understanding if something is overpriced or not.
Apr 5th 2011, 1:06 am
#14
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Re: Discount on NEW home if not using a Realtor
You aren't picking a fight
With regards to "there can only be one price" Builders who are part of the program have agreed that the price of the home will be no different if you use a Realtor or not.
If a Buyer goes into a show home without a Realtor you are right, they don't give a stuff (not about the buyer anyway)
The benefits of using a Realtor for a new build are exactly the same as using a Realtor for the purchase of a re-sale property. If it costs you nothing to be represented by a Realtor, why would you not want to be represented. Remember builders often can't sell new builds and end up listing the homes on the MLS with a Realtor. The reason many new builds do not sell is they are overpriced and I will tell you if the property is overpriced (the builder won't) I also spend a lot of time discussing re-sale value, location, which up-grades you need, good and bad builders, the list is endless.
Additionally you are protected when you work with a REALTOR for a number of reasons:
* REALTORS must adhere to a strict Code of Ethics and Standards of Business Practice; your guarantee of professional conduct and service excellence. Builders agents are not Realtors and they are working for the builder not you.
* All REALTORS carry errors and omissions insurance; If we get it wrong (I haven't yet) you can make a claim against us.
* The Real Estate Assurance Fund is available to you in the rare event of fraud, or breach of trust by a REALTOR®. It is your protection against financial loss. Yes there are some bent Realtors
* A licensed brokerage supervises the business conduct of all REALTORS to ensure their compliance with Alberta law.
JonboyE has given some very sound advice here and at the end of the day the decision to use a Realtor or not is with the buyer. If you have found a builder who will genuinely do a better deal if you don't use a Realtor you have a decision to make.
Another topic that generates much discussion is most builders like you to use their own lawyer and the builder will not recommend an independent home inspection before you take possession.
With regards to "there can only be one price" Builders who are part of the program have agreed that the price of the home will be no different if you use a Realtor or not.
If a Buyer goes into a show home without a Realtor you are right, they don't give a stuff (not about the buyer anyway)
The benefits of using a Realtor for a new build are exactly the same as using a Realtor for the purchase of a re-sale property. If it costs you nothing to be represented by a Realtor, why would you not want to be represented. Remember builders often can't sell new builds and end up listing the homes on the MLS with a Realtor. The reason many new builds do not sell is they are overpriced and I will tell you if the property is overpriced (the builder won't) I also spend a lot of time discussing re-sale value, location, which up-grades you need, good and bad builders, the list is endless.
Additionally you are protected when you work with a REALTOR for a number of reasons:
* REALTORS must adhere to a strict Code of Ethics and Standards of Business Practice; your guarantee of professional conduct and service excellence. Builders agents are not Realtors and they are working for the builder not you.
* All REALTORS carry errors and omissions insurance; If we get it wrong (I haven't yet) you can make a claim against us.
* The Real Estate Assurance Fund is available to you in the rare event of fraud, or breach of trust by a REALTOR®. It is your protection against financial loss. Yes there are some bent Realtors
* A licensed brokerage supervises the business conduct of all REALTORS to ensure their compliance with Alberta law.
JonboyE has given some very sound advice here and at the end of the day the decision to use a Realtor or not is with the buyer. If you have found a builder who will genuinely do a better deal if you don't use a Realtor you have a decision to make.
Another topic that generates much discussion is most builders like you to use their own lawyer and the builder will not recommend an independent home inspection before you take possession.
Did someone say Code of Conduct?
Apr 5th 2011, 2:05 am
#15
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Re: Discount on NEW home if not using a Realtor
I didn't think it would be long before the anti - realtor brigade turned up. Whenever a Realtor is mentioned on this forum the same old people say the same old thing. It amuses me that certain people have such a strong opinion of what I do and how I operate my business yet fortunately we have never met.
Contrary to the belief of some, I do actually really care about the people I work with and I do get enormous satisfaction from helping people buy and sell a home. I really enjoy making new friends and I enjoy spending many hours helping people who move to Canada and I like being involved in their excitement.
I did not invent the Canadian Real Estate system and I did not invent the forms we use. What I always do is represent my clients to the very best of my ability and their needs will always come way before my pay cheque. I agree the system is not perfect but what system is ? I guess it was in my blood to have two careers that some people just don't like, Police Officer and Realtor. But like any job there are good and bad people in both.
I moved to Canada with my family and we did not know anybody, Real Estate has given me the opportunity to meet and stay friends with some of the most amazing people you could ever wish to meet and I am proud to be Realtor.
Contrary to the belief of some, I do actually really care about the people I work with and I do get enormous satisfaction from helping people buy and sell a home. I really enjoy making new friends and I enjoy spending many hours helping people who move to Canada and I like being involved in their excitement.
I did not invent the Canadian Real Estate system and I did not invent the forms we use. What I always do is represent my clients to the very best of my ability and their needs will always come way before my pay cheque. I agree the system is not perfect but what system is ? I guess it was in my blood to have two careers that some people just don't like, Police Officer and Realtor. But like any job there are good and bad people in both.
I moved to Canada with my family and we did not know anybody, Real Estate has given me the opportunity to meet and stay friends with some of the most amazing people you could ever wish to meet and I am proud to be Realtor.
