Buying lot from developer, use agent, questions…
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Buying lot from developer, use agent, questions…
Hi,
We are likely to relocate to area about 600 miles away. We recently visited area and looked at a number of existing homes and drove through neighborhoods and new developments.
We haven’t interviewed or talked with a local agent yet.
We are very interested in exploring buying a lot in a development that we like, and have a few questions.
- does it make sense to engage a local agent if we plan to buy a lot from a developer? I assume developers will pay a buyers agent commission, but that not having an agent will likely not save us money.
- I also assume the developer’s sales staff are agents and if we let them show us the property before we engage an agent, our agent may not be eligible for a commission. Is that your understanding?
The lot is in a hot market and lots are starting to go fast. Does it make sense to contract for the lot ASAP with broad enough contingencies to be able to get out if we have concerns / issues?
We’ve bought and sold homes before, but never bought land and built… starting our research now. Will have additional questions in this thread soon…
We are likely to relocate to area about 600 miles away. We recently visited area and looked at a number of existing homes and drove through neighborhoods and new developments.
We haven’t interviewed or talked with a local agent yet.
We are very interested in exploring buying a lot in a development that we like, and have a few questions.
- does it make sense to engage a local agent if we plan to buy a lot from a developer? I assume developers will pay a buyers agent commission, but that not having an agent will likely not save us money.
- I also assume the developer’s sales staff are agents and if we let them show us the property before we engage an agent, our agent may not be eligible for a commission. Is that your understanding?
The lot is in a hot market and lots are starting to go fast. Does it make sense to contract for the lot ASAP with broad enough contingencies to be able to get out if we have concerns / issues?
We’ve bought and sold homes before, but never bought land and built… starting our research now. Will have additional questions in this thread soon…
“Doing nothing is better than being busy doing nothing.” – Lao Tzu
Re: Buying lot from developer, use agent, questions…
It will depend on the community, and whether the developer is also the builder, or if it is on MLS.RubyTuesday wrote: ↑Mon Aug 02, 2021 5:38 pm We are very interested in exploring buying a lot in a development that we like, and have a few questions.
- does it make sense to engage a local agent if we plan to buy a lot from a developer? I assume developers will pay a buyers agent commission
If the developer is also the builder or requires you to use one of their builders (a "master planned community"), unlikely they will pay a buyers agent commission. If the lot is listed in MLS, then your agent would likely get part of the commission.
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Re: Buying lot from developer, use agent, questions…
Thanks.mkc wrote: ↑Mon Aug 02, 2021 6:12 pmIt will depend on the community, and whether the developer is also the builder, or if it is on MLS.RubyTuesday wrote: ↑Mon Aug 02, 2021 5:38 pm We are very interested in exploring buying a lot in a development that we like, and have a few questions.
- does it make sense to engage a local agent if we plan to buy a lot from a developer? I assume developers will pay a buyers agent commission
If the developer is also the builder or requires you to use one of their builders (a "master planned community"), unlikely they will pay a buyers agent commission. If the lot is listed in MLS, then your agent would likely get part of the commission.
Developer not builder.
Is MLS listed.
Has an Architectural review board and some build restrictions. Has some pre-approved builders with impact fees charged to non-approved builders.
Let’s assume they will pay an agent commission, do you think an agent will add value to the process?
“Doing nothing is better than being busy doing nothing.” – Lao Tzu
Re: Buying lot from developer, use agent, questions…
Unless you are paying the buyers agent's commission and you are trying to decide between communities, I don't see how having an agent will bring any more benefit. If you've already decided on the community and a lot or lots, what do they bring to the table?RubyTuesday wrote: ↑Mon Aug 02, 2021 6:22 pm
Thanks.
Developer not builder.
Is MLS listed.
Has an Architectural review board and some build restrictions. Has some pre-approved builders with impact fees charged to non-approved builders.
Let’s assume they will pay an agent commission, do you think an agent will add value to the process?
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Re: Buying lot from developer, use agent, questions…
I find it reassuring that I can have someone drive by and check on construction progress when I live 1,500 miles from the build site. Or at least that the builder knows I could do that.RubyTuesday wrote: ↑Mon Aug 02, 2021 6:22 pm Let’s assume they will pay an agent commission, do you think an agent will add value to the process?
Also, real estate is local as they say, and a practice that may seem odd to you could be perfectly normal - your agent would know these things. I don’t see any harm in using one, and you won’t save any money on the commission if you don’t. But as you said you generally can’t bring one in after having visited the site and made contact with the seller’s agent.
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Re: Buying lot from developer, use agent, questions…
I’ve already contacted developer to get list of available lots and to ask about HOAs, etc. Do you think this locks out my realtor if I select one now?TropikThunder wrote: ↑Tue Aug 03, 2021 1:10 amI find it reassuring that I can have someone drive by and check on construction progress when I live 1,500 miles from the build site. Or at least that the builder knows I could do that.RubyTuesday wrote: ↑Mon Aug 02, 2021 6:22 pm Let’s assume they will pay an agent commission, do you think an agent will add value to the process?
Also, real estate is local as they say, and a practice that may seem odd to you could be perfectly normal - your agent would know these things. I don’t see any harm in using one, and you won’t save any money on the commission if you don’t. But as you said you generally can’t bring one in after having visited the site and made contact with the seller’s agent.
I would also find it reassuring to have someone dropping by and checking in. But to be clear, my original question was about the lot. I assume I could still have agent involved when selecting builders unless there’s little value.
“Doing nothing is better than being busy doing nothing.” – Lao Tzu
Re: Buying lot from developer, use agent, questions…
Find a buyer’s agent who will rebate part of their commission.
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Re: Buying lot from developer, use agent, questions…
No, that doesn't lock out a buyer's agent.RubyTuesday wrote: ↑Tue Aug 03, 2021 6:00 amI’ve already contacted developer to get list of available lots and to ask about HOAs, etc. Do you think this locks out my realtor if I select one now?TropikThunder wrote: ↑Tue Aug 03, 2021 1:10 amI find it reassuring that I can have someone drive by and check on construction progress when I live 1,500 miles from the build site. Or at least that the builder knows I could do that.RubyTuesday wrote: ↑Mon Aug 02, 2021 6:22 pm Let’s assume they will pay an agent commission, do you think an agent will add value to the process?
Also, real estate is local as they say, and a practice that may seem odd to you could be perfectly normal - your agent would know these things. I don’t see any harm in using one, and you won’t save any money on the commission if you don’t. But as you said you generally can’t bring one in after having visited the site and made contact with the seller’s agent.
I would also find it reassuring to have someone dropping by and checking in. But to be clear, my original question was about the lot. I assume I could still have agent involved when selecting builders unless there’s little value.
Do you have a real estate lawyer?
Avid user of forums on variety of interests-financial, home brewing, F-150, EV, home repair, etc. Enjoy learning & passing on knowledge. It's PRINCIPAL, not PRINCIPLE. I ADVISE you to seek ADVICE.
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Re: Buying lot from developer, use agent, questions…
Don’t have a real estate lawyer yet, but plan to engage one.RickBoglehead wrote: ↑Tue Aug 03, 2021 6:35 amNo, that doesn't lock out a buyer's agent.RubyTuesday wrote: ↑Tue Aug 03, 2021 6:00 amI’ve already contacted developer to get list of available lots and to ask about HOAs, etc. Do you think this locks out my realtor if I select one now?TropikThunder wrote: ↑Tue Aug 03, 2021 1:10 amI find it reassuring that I can have someone drive by and check on construction progress when I live 1,500 miles from the build site. Or at least that the builder knows I could do that.RubyTuesday wrote: ↑Mon Aug 02, 2021 6:22 pm Let’s assume they will pay an agent commission, do you think an agent will add value to the process?
Also, real estate is local as they say, and a practice that may seem odd to you could be perfectly normal - your agent would know these things. I don’t see any harm in using one, and you won’t save any money on the commission if you don’t. But as you said you generally can’t bring one in after having visited the site and made contact with the seller’s agent.
I would also find it reassuring to have someone dropping by and checking in. But to be clear, my original question was about the lot. I assume I could still have agent involved when selecting builders unless there’s little value.
Do you have a real estate lawyer?
What’s best way to find reputable RE attorney 600 miles away? Would asking a realtor we hire be good approach?
“Doing nothing is better than being busy doing nothing.” – Lao Tzu
Re: Buying lot from developer, use agent, questions…
Not the role of a real estate agent, especially when this is the purchase of just a lot.TropikThunder wrote: ↑Tue Aug 03, 2021 1:10 amI find it reassuring that I can have someone drive by and check on construction progress when I live 1,500 miles from the build site. Or at least that the builder knows I could do that.RubyTuesday wrote: ↑Mon Aug 02, 2021 6:22 pm Let’s assume they will pay an agent commission, do you think an agent will add value to the process?
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Re: Buying lot from developer, use agent, questions…
In your original post you state you want “broad enough contingencies to be able to get out if we have concerns / issues.” I highly doubt any developer in a hot market with lots selling fast is going to give you an out. You may be able to sell the lot to someone else and maybe even make a profit. You can always ask for contingencies but I would be surprised if the developer allowed anything that would simply let you walk.RubyTuesday wrote: ↑Mon Aug 02, 2021 5:38 pm Hi,
We are likely to relocate to area about 600 miles away. We recently visited area and looked at a number of existing homes and drove through neighborhoods and new developments.
We haven’t interviewed or talked with a local agent yet.
We are very interested in exploring buying a lot in a development that we like, and have a few questions.
- does it make sense to engage a local agent if we plan to buy a lot from a developer? I assume developers will pay a buyers agent commission, but that not having an agent will likely not save us money.
- I also assume the developer’s sales staff are agents and if we let them show us the property before we engage an agent, our agent may not be eligible for a commission. Is that your understanding?
The lot is in a hot market and lots are starting to go fast. Does it make sense to contract for the lot ASAP with broad enough contingencies to be able to get out if we have concerns / issues?
We’ve bought and sold homes before, but never bought land and built… starting our research now. Will have additional questions in this thread soon…
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Re: Buying lot from developer, use agent, questions…
Good point. Do you think contingencies around suitability to build or get permits etc would be accepted in hot market? The lot is in mountainous region but slope isn’t terrible and there are houses on adjacent very similar lots.Golf maniac wrote: ↑Tue Aug 03, 2021 9:21 amIn your original post you state you want “broad enough contingencies to be able to get out if we have concerns / issues.” I highly doubt any developer in a hot market with lots selling fast is going to give you an out. You may be able to sell the lot to someone else and maybe even make a profit. You can always ask for contingencies but I would be surprised if the developer allowed anything that would simply let you walk.RubyTuesday wrote: ↑Mon Aug 02, 2021 5:38 pm Hi,
We are likely to relocate to area about 600 miles away. We recently visited area and looked at a number of existing homes and drove through neighborhoods and new developments.
We haven’t interviewed or talked with a local agent yet.
We are very interested in exploring buying a lot in a development that we like, and have a few questions.
- does it make sense to engage a local agent if we plan to buy a lot from a developer? I assume developers will pay a buyers agent commission, but that not having an agent will likely not save us money.
- I also assume the developer’s sales staff are agents and if we let them show us the property before we engage an agent, our agent may not be eligible for a commission. Is that your understanding?
The lot is in a hot market and lots are starting to go fast. Does it make sense to contract for the lot ASAP with broad enough contingencies to be able to get out if we have concerns / issues?
We’ve bought and sold homes before, but never bought land and built… starting our research now. Will have additional questions in this thread soon…
“Doing nothing is better than being busy doing nothing.” – Lao Tzu
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Re: Buying lot from developer, use agent, questions…
Oh I thought they were eventually going to buy a house to put on the lot. I didn't know they were just buying the land.mkc wrote: ↑Tue Aug 03, 2021 8:40 amNot the role of a real estate agent, especially when this is the purchase of just a lot.TropikThunder wrote: ↑Tue Aug 03, 2021 1:10 amI find it reassuring that I can have someone drive by and check on construction progress when I live 1,500 miles from the build site. Or at least that the builder knows I could do that.RubyTuesday wrote: ↑Mon Aug 02, 2021 6:22 pm Let’s assume they will pay an agent commission, do you think an agent will add value to the process?
Re: Buying lot from developer, use agent, questions…
The sales agents for the builders in our development (contract signed about 2 years ago) were not licensed realtors. So they weren’t covered by the realtors’ commission structure.
Our realtor got a commission, but a low one (on base price of house we chose, so excluding our lot premium and any upgrades to house).
Our realtor got a commission, but a low one (on base price of house we chose, so excluding our lot premium and any upgrades to house).
Last edited by delamer on Tue Aug 03, 2021 6:02 pm, edited 1 time in total.
One thing that humbles me deeply is to see that human genius has its limits while human stupidity does not. - Alexandre Dumas, fils
Re: Buying lot from developer, use agent, questions…
I ran into this situation a number of years ago and the builder indicated that since we had contacted them first, they would not cover any agent commission and would increase the price of the house if we wanted to use a buyer’s agent. We ultimately ended up not building with them.RickBoglehead wrote: ↑Tue Aug 03, 2021 6:35 amNo, that doesn't lock out a buyer's agent.RubyTuesday wrote: ↑Tue Aug 03, 2021 6:00 amI’ve already contacted developer to get list of available lots and to ask about HOAs, etc. Do you think this locks out my realtor if I select one now?TropikThunder wrote: ↑Tue Aug 03, 2021 1:10 amI find it reassuring that I can have someone drive by and check on construction progress when I live 1,500 miles from the build site. Or at least that the builder knows I could do that.RubyTuesday wrote: ↑Mon Aug 02, 2021 6:22 pm Let’s assume they will pay an agent commission, do you think an agent will add value to the process?
Also, real estate is local as they say, and a practice that may seem odd to you could be perfectly normal - your agent would know these things. I don’t see any harm in using one, and you won’t save any money on the commission if you don’t. But as you said you generally can’t bring one in after having visited the site and made contact with the seller’s agent.
I would also find it reassuring to have someone dropping by and checking in. But to be clear, my original question was about the lot. I assume I could still have agent involved when selecting builders unless there’s little value.
Do you have a real estate lawyer?
Re: Buying lot from developer, use agent, questions…
worth reading....
viewtopic.php?f=2&t=353491
Builder owns our lot and still hasn't started build that was supposed to complete 3 months ago... what are our options to get out of it?
Re: Buying lot from developer, use agent, questions…
As another poster stated, if you're going to use a Realtor, you might as well go with one that rebates some of the commission--someplace like Redfin.
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Re: Buying lot from developer, use agent, questions…
The developer should be able to assure you the lot can be built on. At one time we owned a mountain lot and the builders all stated they could hang a house almost anywhere on the mountain. We ended up selling the lot but checking on ability to build with the builders is not a bad idea. Will it be on municipal water and sewer? If not he should be able to provide a perk test for the lot for septic tank and give you some local companies to check drilling for a well (ie how deep to hit water and cost).RubyTuesday wrote: ↑Tue Aug 03, 2021 11:27 amGood point. Do you think contingencies around suitability to build or get permits etc would be accepted in hot market? The lot is in mountainous region but slope isn’t terrible and there are houses on adjacent very similar lots.Golf maniac wrote: ↑Tue Aug 03, 2021 9:21 amIn your original post you state you want “broad enough contingencies to be able to get out if we have concerns / issues.” I highly doubt any developer in a hot market with lots selling fast is going to give you an out. You may be able to sell the lot to someone else and maybe even make a profit. You can always ask for contingencies but I would be surprised if the developer allowed anything that would simply let you walk.RubyTuesday wrote: ↑Mon Aug 02, 2021 5:38 pm Hi,
We are likely to relocate to area about 600 miles away. We recently visited area and looked at a number of existing homes and drove through neighborhoods and new developments.
We haven’t interviewed or talked with a local agent yet.
We are very interested in exploring buying a lot in a development that we like, and have a few questions.
- does it make sense to engage a local agent if we plan to buy a lot from a developer? I assume developers will pay a buyers agent commission, but that not having an agent will likely not save us money.
- I also assume the developer’s sales staff are agents and if we let them show us the property before we engage an agent, our agent may not be eligible for a commission. Is that your understanding?
The lot is in a hot market and lots are starting to go fast. Does it make sense to contract for the lot ASAP with broad enough contingencies to be able to get out if we have concerns / issues?
We’ve bought and sold homes before, but never bought land and built… starting our research now. Will have additional questions in this thread soon…
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Re: Buying lot from developer, use agent, questions…
It’s on municipal sewer and water, so those risks are mitigated. Thanks!Golf maniac wrote: ↑Wed Aug 04, 2021 10:29 amThe developer should be able to assure you the lot can be built on. At one time we owned a mountain lot and the builders all stated they could hang a house almost anywhere on the mountain. We ended up selling the lot but checking on ability to build with the builders is not a bad idea. Will it be on municipal water and sewer? If not he should be able to provide a perk test for the lot for septic tank and give you some local companies to check drilling for a well (ie how deep to hit water and cost).RubyTuesday wrote: ↑Tue Aug 03, 2021 11:27 amGood point. Do you think contingencies around suitability to build or get permits etc would be accepted in hot market? The lot is in mountainous region but slope isn’t terrible and there are houses on adjacent very similar lots.Golf maniac wrote: ↑Tue Aug 03, 2021 9:21 amIn your original post you state you want “broad enough contingencies to be able to get out if we have concerns / issues.” I highly doubt any developer in a hot market with lots selling fast is going to give you an out. You may be able to sell the lot to someone else and maybe even make a profit. You can always ask for contingencies but I would be surprised if the developer allowed anything that would simply let you walk.RubyTuesday wrote: ↑Mon Aug 02, 2021 5:38 pm Hi,
We are likely to relocate to area about 600 miles away. We recently visited area and looked at a number of existing homes and drove through neighborhoods and new developments.
We haven’t interviewed or talked with a local agent yet.
We are very interested in exploring buying a lot in a development that we like, and have a few questions.
- does it make sense to engage a local agent if we plan to buy a lot from a developer? I assume developers will pay a buyers agent commission, but that not having an agent will likely not save us money.
- I also assume the developer’s sales staff are agents and if we let them show us the property before we engage an agent, our agent may not be eligible for a commission. Is that your understanding?
The lot is in a hot market and lots are starting to go fast. Does it make sense to contract for the lot ASAP with broad enough contingencies to be able to get out if we have concerns / issues?
We’ve bought and sold homes before, but never bought land and built… starting our research now. Will have additional questions in this thread soon…
“Doing nothing is better than being busy doing nothing.” – Lao Tzu