# Building a new home, do I need a realtor?



## briant (Jun 23, 2009)

Have you gone through the process of building your own home? My friend needs some advice. He's building a new home directly with a home builder. Should he use the services of a Realtor? If so, how does the Realtor get paid?


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## Berubeland (Sep 6, 2009)

No he should not use a Realtor he should use a real estate lawyer to make sure the paperwork is up to snuff.


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## LondonHomes (Dec 29, 2010)

Hi Briant,

Your friend can use their own realtor on a new build home if they wish too. The realtor would get paid by the builder, normally the builder has a set amount that they will pay the realtor and it is either paid to realtor the builder has hired or to the realtor you use, so it does not cost the buyer extra.

However, builders are normally picky on the use of an outside realtor and you need to declare that you are working with a realtor whenever you first approach the builder.

There is a good article on Building a New Home with a realtor here.

However if your friend has already found the home and builder they want then as Berudeland said you maybe better off to spend some money out of your own pocket and have the paperwork reviewed by a real estate lawyer.


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## Cal (Jun 17, 2009)

LondonHomes said:


> However if your friend has already found the home and builder they want then as Berudeland said you maybe better off to spend some money out of your own pocket and have the paperwork reviewed by a real estate lawyer.


You will have to pay closing costs to a lawyer whether you do or do not use a realtor.

I wouldn't use a realtor to buy a home from a builder. Not necessary.


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## I'm Howard (Oct 13, 2010)

Your Friend shoud expect final costs to be about 10% above quoted amount and should take about five months to build.

Check builder out carefully, do not go with cheapest but one with solid reputation.

I have built my own home from our own plans.


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## kcowan (Jul 1, 2010)

OP were you working with a realtor before you decided to buy a home from a builder?


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## FrugalTrader (Oct 13, 2008)

We built our house in 2007/2008, and we had a realtor. He helped us coordinate the initial meetings, and helped settle disputes with the builder.


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## briant (Jun 23, 2009)

Thanks for the informative replies!

He's decided to bring in a Realtor into the negotiations. The Realtor said that the fee is $2000, which will come from the builder. I'm not sure if this is based on a percentage or builder dependent. The house value is around $320k


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## kcowan (Jul 1, 2010)

Why did he decide? Who is in control here? Do you like the realtor? I don't understnd how the builder can decide who should represent your interests!


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## marina628 (Dec 14, 2010)

We were looking for resell market in 2001 with a real estate agent , when we did not find anything suitable we went to http://jefferyhomes.com/ and had them custom build a house for us.They paid our agent a flat rate of $1000.00 referral fee even though their sales agent did all the papers.Our agent made the initial contact as we liked another Jeffery Built home but it was not the exact thing for us.
I would not get an agent to go to a new home builder with me but as I said last time it worked out that way.


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## briant (Jun 23, 2009)

kcowan said:


> Why did he decide? Who is in control here? Do you like the realtor? I don't understnd how the builder can decide who should represent your interests!


I don't think you understand. My friend choose to use his own Realtor. The builder didn't give us a Realtor.


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## kcowan (Jul 1, 2010)

briant said:


> I don't think you understand. My friend choose to use his own Realtor. The builder didn't give us a Realtor.


OK thanks.


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