How To Save Money Buying A Brand-New Home

February 18, 2015 at 2:12 pm | Posted in Real Estate Transactions, Tips On Purchasing A Brand-New Home | Leave a comment
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As necessary as they may be for most real estate transactions, real estate agents are not needed for all real estate transactions.

For instance, especially when house hunting for a brand-new home, do not tour a brand-new house with any real estate agent other than the person assigned by the seller to show the property. Go alone, because the builder and/or seller will be more willing to negotiate with you on the price.

It’s okay to tour new homes with a friend or spouse, but once you start looking at new homes with your own real estate agent, your agent will expect the new home owner to pay him or her a commission for bringing a buyer. If you go without an agent, you will be able to offer less money for the house, since the owner will not have to pay a commission to your real estate agent. You, essentially, will be representing yourself which gives you the right to expect a very reasonable discount, saving thousands of dollars on a brand-new home.

The same applies to a property for sale by its owner. Do not have a real estate agent accompany you there or the agent will expect a commission from the seller for bringing a buyer to the table. Of course, if you are interested in a property already listed by an agency, that agency will expect their commission from the seller upon the sale whether you arrive with an agent or not. But once two or more agents get involved, it will be much more difficult to get the price of the property reduced. The more agents involved (theirs and yours) means commissions have to be paid, so the price of the property may not be able to be reduced that much or at all in order to satisfy the seller’s needs.

Should you wish to sell your property yourself, there is no law stating you have to list your property with a real estate agent. Home owners have the right to sell their homes themselves, saving the cost of paying a commission to an agent even though commissions certainly are negotiable.

Beware not to inadvertently become involved in a bidding war over any property! There are those who have been known, once they see you really are interested in purchasing a piece of property, to orchestrate a bidding war, purposely driving up the price of the property in order to make more money all the way around. You’ll be better off purchasing something else rather than becoming involved in a bidding war.

 

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