The Unique Real Estate Blog

Did you know that buying a new home without a Realtor may cost you money?

“Most people think that you don’t need a Realtor to buy a new home, and that if you don’t use one, you can save money. Nothing could be farther from the truth.” says Brian Marsh, a Realtor who has actually been that new home salesperson for the builder. “What new home buyers don’t understand, is that the builder’s salesperson is not looking out for their best interest, but rather the builder. The salesperson has a fiduciary obligation to the builder to sell the home at the highest price. And, unfortunately, some builders, feeling the pinch of increasing competition and higher materials cost, are taking advantage of the buyer in what amounts to tens of thousands of dollars on some transactions.”

“A professional Realtor, who is skilled in negotiation, the ins and outs of the building process, and who’s experience lends him a first hand knowledge of the pit falls, traps, and advantageous options that are common in new home sales can be invaluable to the client.”

Doesn’t the builder raise the home’s price to pay for the Realtor’s commission?

“Now days, builders are very reliant upon Realtors, with Realtor business accounting for more than 80% of sales for some builders. Builders can’t afford to lose their business by cutting the Realtor out of the process. Most builders completely separate the Realtor’s commission into their marketing budget, so that the temptation to cut out the Realtor isn’t there. And in fact, legally, they can’t - in many states, it is illegal to pay commission to anyone from a Real Estate transaction unless they are a licensed real estate practitioner. Unfortunately, at the salesperson level, the customer may be told that if they don’t use a Realtor, that the salesperson will give them the commission. In reality, the salesperson would have given them that much and more off the home anyway, if the customer knew about special pricing, incentives, and realistic market rates.” “While some new home salespeople like their customers having a Realtor to make the process go smoothly, other, more unscrupulous salespersons would do just about anything to get the Realtor out of the process so that they can take advantage of the customer’s lack of resources and insider knowledge.”

What is the new home buying process like today? Aren’t most people using the internet to buy a home?

“They are, and it’s changed the way successful Realtors do their job. The day of Realtors acting as a Taxi service / Home directory is over.” says Brian. “You still see some old timers providing this kind of service, and for some people, it’s needed. However, most buyers today are sophisticated, knowledgeable buyers who spend many, many hours scouring available homes and information on the internet before ever contacting a Realtor. Since the client knows their own needs, they are often the one who does the footwork of looking at homes now.”

Then what does the Realtor do?

“With the advent of the internet also came a much more complicated home buying process. Today’s successful Realtor must not only know how to view homes on the internet, but know how to use that technology combined with local market knowledge to weed out bad homes, give accurate price comparables, keep their client away from bad builders, and market the buyer’s existing home.” “Really, the Realtors job has progressed from a subset of 10-20 functions to a subset of 100+ functions. The Realtor who isn’t harnessing technology, assistants, and 3rd party professionals just isn’t able to give their clients the service they deserve.” “And buyers who seek to play the buy or sell it myself route are treading on thin ice.” says Brian. “While we’d all like to save money, not using a Realtor is like not using an attorney. You might luck out and escape the process without being harmed, but the chances are that you’ll lose big, and often not even realize it until you sell your home years later. In fact, a study from the National Association of Realtors showed that homeowners sold their home for 16% more when they used a Realtor. That’s why most experienced buyers and sellers use a Realtor. Sometimes they’ve had to learn this the hard way.”

Brian Marsh is the “Chief Visionary and Realtor” with the Brian Marsh Group in the Dallas, TX area. Brian has used his more than 20 years of Sales experience and technological know how to build a team that harnesses technology, assistants, and 3rd party professionals to provide a very powerful and seamless transaction for their residential and investment clients. If you’d like to read more of Brian’s insightful real estate advice visit his Real Estate blog at www.AggressiveHomeSales.com/Blog.html or visit his website at www.AggressiveHomeSales.com