Selecting a Real Estate Agent for New Home Sale

Selecting a Real Estate Agent for New Home Sale

Developer · Boise, ID · Member since 2010 · 53 posts · 30 votes

Hi All. I am hoping to tap into the group for some advice. My partner and I have 2 home lots and will need to select a good Realtor to help us market and sell the homes. My challenge is that I have a relationship with a Realtor who knows the area and specializes in new home sales. On the other hand, the broker that represented us in the acquisition of the lots is also a very good and capable broker, although she is not specialized in new home sales.

Frankly, I think either would do a good job selling the homes (especially in this market) but I'm trying to weigh the following things:

1) In general, I like the idea of rewarding the sourcing broker. With that said, she did a lot of work on the negotiation/closing but the home lots were found via a standard MLS listing that came to my email box. She didn't truly "source" these lots, I just found them via an email blast that she set up for me.

2) I would like get the new-home broker involved because of his specific knowledge and I hope that by involving him it will help to build a relationship there. He has connections to others who are creating subdivisions where we might buy additional lots.

I guess my question is whether I go with the one who handled the buy side of the dirt or change to a new home sales specialist. I'm leaning toward hiring the specialist but I'm concerned that if I change I might hurt the relationship with the initial broker. Any thoughts on how to handle this?

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Mike CumbieBusiness Member
REALTOR® · Brockport, NY · Member since 2015 · 3k+ posts · 4k+ votes
8y

Hi @Account Closed,

In the end the decision is yours. Generally speaking any person I know who says "The other agent found this property and I am going to list it with them" is OK in my book. I will continue to find things they may want and hope to make a deal in the future. However a client that buys a cheap thing from me (HUD, LOT, Mobile home, Hoarder house). Improves said property and then contacts someone else to list it when it is worth 5 times the price, will never receive any deals from me.

I have people I reach out to when deals come along because they are loyal. I will take the $415 HUD commission today because I know when they sell I am getting $2900. No rockstar deals, but grinding through the process is fine with me. Let me lose money going through a $415 commission and then list with someone else... I won't source any further deals. Those hidden gems are in no way going out.

Just my 2 cents and good luck in whatever you decide. 

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  • Charlotte, NC · Member since 2018 · 180 posts · 144 votes
    8y

    Matt,

    I'd stick with my person who got the deals for me, as long as you want to continue to work with her and you don't think either will make a big financial difference.  I prefer a smaller group of people working hard for me to a larger network working some for me.

    In this market, I definitely wouldn't pay listing agents very much to sell high end new homes.  3% to the buyer's agent, a flat fee (~$2k) to the listing agent should do it.   What are they really going to do for you anyway?  

    Good Luck!

    Chris

  • Russell BrazilBusiness Member
    Moderator
    Real Estate Agent · Washington, D.C. · Member since 2012 · 17k+ posts · 30k+ votes
    8y
    Originally posted by @Chris Sellers:

    Matt,

    In this market, I definitely wouldn't pay listing agents very much to sell high end new homes.  3% to the buyer's agent, a flat fee (~$2k) to the listing agent should do it.   What are they really going to do for you anyway?  

    I bet @Jay Hinrichs pays his listing agents more than that. Id be curious to hear what he pays them....as well as what direction he would go. All he does is sell new construction all over the country

  • Mike CumbieBusiness Member
    REALTOR® · Brockport, NY · Member since 2015 · 3k+ posts · 4k+ votes
    8y

    Hi @Account Closed,

    In the end the decision is yours. Generally speaking any person I know who says "The other agent found this property and I am going to list it with them" is OK in my book. I will continue to find things they may want and hope to make a deal in the future. However a client that buys a cheap thing from me (HUD, LOT, Mobile home, Hoarder house). Improves said property and then contacts someone else to list it when it is worth 5 times the price, will never receive any deals from me.

    I have people I reach out to when deals come along because they are loyal. I will take the $415 HUD commission today because I know when they sell I am getting $2900. No rockstar deals, but grinding through the process is fine with me. Let me lose money going through a $415 commission and then list with someone else... I won't source any further deals. Those hidden gems are in no way going out.

    Just my 2 cents and good luck in whatever you decide. 

  • Charlotte, NC · Member since 2018 · 180 posts · 144 votes
    8y

    Russell,

    You realtors are absolutely crucial for investors.  Worth your weight in gold.  I work with one and he's fantastic.  I have 2 multis for sale right now where I'm paying the normal 6% split because he's dealing with investors and navigating some complication.  I've paid more than 6% for lower cost deals or when he brings incredible off market stuff that is in hot demand.  

    He totally understands, however, when I sell a new house in a sellers' market that he just can't bring that much value to that deal. Once it's in MLS, it's going to be seen by everyone, multiple offers, highest and best. He offers the flat fee to me to handle the other realtor and closing. To me, he's a total pro.

    Thanks,

    Chris

  • Developer · Boise, ID · Member since 2010 · 53 posts · 30 votes
    8y

    Thanks for the quick feedback everyone.  In thinking this one over, the challenge is that I found these lots because a broker had me on an email blast list (the fact is, the same email blast came to me via Zillow shortly after).  I like the agent and she is one of the best and follow-up and making sure transactions get done.  We have done other transactions together (for my day job) and I would highly recommend her but not necessarily for new home sales and I wouldn't say that she went out and found this for me.  It was a very passive approach.  Anyone can set up an email trigger.

    I would like to pull in the new home specialist because not only has he been a resource for information and advice over the years but he also is plugged into the home lot world. He truly could find lots for me - ones that aren't just listed on the MLS. Having him sell our homes would help build that relationship.

    But, I don't want to hurt the relationship with the initial agent.  

  • Developer · Boise, ID · Member since 2010 · 53 posts · 30 votes
    8y

    @Mike Cumbie

    You hit the nail on the head with my concern.  I don't want to have her buy the low cost lots for me and then throw the more valuable work to someone else.

    On the other hand, I also am feeling like I did all the work since she didn't "bring" it to me, rather I saw it and and felt loyal enough to use her since it was her email blast.  

  • Real Estate Agent · Grand Junction, CO · Member since 2015 · 1k+ posts · 736 votes
    8y

    @Mike Cumbie first of all I think you are putting too much emphasis on the fact that it is a "new" home. The marketing, paperwork and follow-up are what is important and it sounds like she is good. Secondly, clients find properties on their own all the time - they see a sign in a yard or go to an open house, etc. This isn't a strike against the Realtor - I put a property under contract last night that the client chose. I didn't send them that listing because it didn't fit the perimeters they provided to me... but when they asked to see it I showed it. 

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