Wednesday, May 7, 2014

Retirement or holiday home: hottest spots for buying a place in the sun

Since I’ve been working with Landon Homes selling New homes in St. Augustine, who in my humble opinion is one of the BEST home builders in the area, I have heard some buyers myths circulating.  I thought my blog would be the best place to clear up the number one concern.
Image“If the buyer does not use an agent they will get a better deal with the home builder.”
At times real estate agents are concerned that a builder will offer a better deal to their buyer, since the builder doesn’t have to pay a commission. And in reality this myth is perpetuated more by uninformed buyers than anyone else, because they think they have more ability to negotiate without an agent commission.  NOT so at Landon Homes!
The fact that if there is no commission paid on a particular home it really does not mean there is more room for negotiation. Any reputable builder would not even offer such a deal because of the ramifications it will have within the broker community. Bottom line, the buyer cannot negotiate down the percentage that would have been paid to an agent.
Most builders set their margins based on a certain percentage they will pay for commissions throughout the community not based house by house. If a builder were found saying to a buyer, “well if you don’t use your agent I can give you a better deal…” that would be the death of their real estate agent traffic.  Imagine the ramifications it would have in the real estate community?  Whoooo boy! No builder is willing to risk that no matter how hard an individual negotiates without an agent. By informing buyers that this is not a stance the builder will take it will help squash the idea that going it alone will help them get a better deal.
Strong reputable builders, like Landon Homes, make the effort to reduce concerns and work together with real estate agents for the good of the clients and the good of the St. Augustine real estate community.  Selling new Homes in St. Augustine and creating a happy experience for Buyer and Agents alike are our main priorities.

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