Builder Incentives and Seller Concessions
Builders typically employ sales people who specialize in hard-pressure sales. That's why it's not smart to walk into a new home sale's office without your own agent to represent you. Because otherwise, you could find yourself walking out with a sales contract in your hand, unsure of just what happened or whether you even want to buy in that development.
Builders offer all sorts of incentives to get buyers to press hard because third copy is theirs. You might think a solid marble counter is a fabulous freebie, but do you know the actual cost of that incentive? Have you studied the pitfalls to marble counters? Do you like marble enough to pay for it because it's unlikely that counter is actually free.
Builders aren't the only ones offering incentives. Sellers of resale homes are offering concessions as well. Some sellers will throw a free car into the deal. Except the car isn't really free when you look at the fine print . . . read more about Builder Incentives and Seller Concessions.
More Articles by Elizabeth Weintraub, click below:
©Big Stock Photo
Technorati tag: builder incentives seller incentives
Comments
Very good. Many times we forget about how important it is in this market to be aware of the business practices of housing entities. Never forget that you are an extension of your buyer and you should always try to keep in mind their best interests. In this way, you will best service them and keep them content - and will lead to more referrals in the future. Can you think of at least 5 other ways to generate referrals?
Did you copy and paste this message, Tim? Because I fail to see how it has anything to do with what I have addressed. Perhaps you meant to post this somewhere else, having to do with referrals, maybe? This article is about builder incentives and seller concessions, not referrals.
As a new home sales agent I can say that the worst thing that you can possibly do when you buy a new home is to bring your own agent. Typically what happens is that the builder will ask you to “NET” a certain number on the home, less than the asking. The money can be applied towards incentives and concessions. When you bring a realtor it goes to pay their commission. That money does not just come out of thin air, it is taken right from your bargaining power. If you want to get a good deal on a new home then you should do a little of your own research. Noboy is going to force you to sign a contract. Also you would be suprised what we would might tell you if you just come out and ask what does the builder want to net and how low can you go on price. It’s not rocket science.
You say this like you think buyers fell off a turnip truck. Sure, builders are going to tell you exactly how low they will go the day pigs fly. Good buying agents are worth their weight in gold if they can help a buyer negotiate. Do buyers want the builder to pay its own agent double the commission to act as a dual agent or are buyers better off seeking their own representation? I think savvy home buyers already know the answer to this.