Realtors commission split?

Question

So I found a property that I really like. It’s a pre build property so I have the option to buy it from the builder or get a realtor. If I buy it from the builder, the builder saves the commission. If I use a realtor (any realtor), they would get nearly 5-7k free. Keep in mind that they would not have showed me any homes, or done any work.

1) is it recomendable to use a realtor?

2) would it be wrong for me to ask the realtor I pic to split their commission with me or something since they really didn’t do much?

3) I will probably use this realtor in the future for other properties. So asking this might offend them.

Allen Lopez · Answer

@Brian D. Beatty

Thank you I like your way of thinking

Nick Kravchuk · Answer

If you have walked into the sales office without your Realtor on your first visit, the builder will not pay your Realtor a commission. The Realtor must be with you on the very first visit, builders are very strict with this. Also most builders won't negotiate on the price, for a couple different reasons. One being what Russel mentioned with other people in the community being upset or mad that they paid full price and then it sets a precedence. It also could hurt the builder with future appraisals. From my experience the Realtor can help negotiate with the upgrades, the builder is usually more willing to negotiate on these than with price, as the amount of upgrades given will not show up on the county records, just the actual sales price.

Russell Brazil · Answer

Depends on the builder and their reputation. Some builders wont negotiate price at all, some may discount if you have no agent, some only negotiate if you have an agent, some builders build a great product, others build crappy products. As a layman though, you cant tell one from the other on any of these fronts.

I live in a new construction community and lots of my neighbors got pissed at me when I moved in because I paid less than they all did because this builder has a policy of only negotiating with agents and not members of the public, then on top of that Ive bought multiple properties from this builder and have an ongoing relationship with the sales rep that was here, so I got a particularly good deal.

Brian D. Beatty · Answer

It's definitely not going to cost you anything, too have someone who deals with real estate contracts and contingencies everyday! Just my 2 cents!

Brian D. Beatty · Answer

As a Realtor, my suggestion would be 2 options.

1st, you totally trust the builder and their representatives, you understand all phases of the contract and any contingencies, you know all the deadlines for backing out of the deal and getting any escrow money back? Then use the builder.

2nd, Use a Realtor you trust, to look over contract, guide you through the process and make sure you're getting everything you can. Also you wouldn't be paying the agent, the builder would, so no money out of pocket, for representation!

Your choice, seems kind of like a no brainer, too me. As far as splitting the commission, some may do this. But now your buying on discount, you want Saks Fith Ave representation or Wal-Mart?