How to effectively negotiate on a new construction

[Vishal Chowdhary]

Considering investing in a new construction property in San Ramon, CA. If I bring along my own realtor, builder has to pay 2.5% buyer's agent commission. Instead, can I negotiate with the builder to provide me concession for directly working with the builder? If so, please share negotiation tips.

[Doug Smith]

One thing to be mindful of when buying in a development from a realtor is that they really can't lower the price for you. Real estate transactions are public record in most places, so what you pay is going to show up on the MLS and impact every other sale they make in the neighborhood. If they cut price for you, they have just added a lower comp for every future home they sell in the neighborhood...not to mention opening themselves up to discrimination suits from previous homeowners who paid more for the house (true or not...an attorney can sue for pretty much anything these days). Instead, they might negotiate in things that won't show up in county records/the MLS like upgrades or picking up closing costs. That being said, it would be rough on the builder in a development to lower the price on a home for one person without having to do it for everyone.