realtor and pre construction purchase

Discussion in 'Real Estate General Discussions' started by zaindo, Feb 24, 2012.

  1. zaindo

    zaindo New Member

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    What kind of services would a real estate agent who helped you purchase a pre-construction condo offer during the time of closing ? I have worked with a real state agent for the first time when i purchased my pre-construction condo a few years back.

    Now its time for closing and occupancy - what would be the kind of support i am looking to get from my realtor ? Please share
     
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  2. Wooba

    Wooba Active Member

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    Absolutely none. It's all in your lawyers hands at this point.
     
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  3. Rocky

    Rocky Active Member

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    probably the easiest hi$$ commision one could ever make is by being a real estate agent for pre-con Condo
     
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  4. drewp

    drewp Active Member

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    Yep you are right. Be very careful when you contact an Agent for pre-construction. Most have no idea what things are selling for, and will promote the product because on average they are receiving 4% commission. They are virtually working for the builder.
     
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  5. cityplaceguy

    cityplaceguy Active Member

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    Yes dont use your joe blow Realtor when buying a pre-con but use one that specializes with pre-cons as well as the builder in question.

    Im never too busy for your refferal!
     
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  6. neubilder

    neubilder Banned

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    What, like you 'cityplace' guy? You will never get my business or my referral
     
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  7. drewp

    drewp Active Member

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    Obviously he is afraid to expose who he really is. Makes you wonder what he is hiding.
     
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  8. aznbb4l

    aznbb4l New Member

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    I thought you don't even need an agent for pre-con purchase?
    Closing is mostly handled by lawyers...
     
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  9. Seesus

    Seesus Active Member

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    In some cases VIP opening prices were only available through agents. It would then become a matter of getting the free service and help yourself with picking the right kind of floor/ unit before its open to public ?
     
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  10. interested

    interested Senior Member

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    ^^^
    But herein lies the myth.
    It is not a free service. The 4% commission is factored into the price. Since the developers are doing it "en masse" and using the realtors to bring in their clients/investors; all purchasers are paying for this "free service".
    Perhaps it is just "what the market will bear" but developers I am sure work on a certain "profit margin" and if it is not there, the project does not get built. Perhaps they would still sell at the same price and make 4% more but it would leave room for competition unless one believes that all the developers are colluding together to bring prices up to their present levels.
     
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  11. Rocky

    Rocky Active Member

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    You are correct, In my particular case - I did this knowing that it wasn't really a free Free-Service, but hey better prices than for the masses, ability to do priority selection and save a good few thousand dollars - I think wasn't that bad of a deal after all. I kind of think that was the only advantage i got for having a real estate agent and nothing else, so it was certainly a very easy 20K+ for him in commission (without any work involved), helps me find answer to knowing why there are so many realtor's trying to see pre-cons. Friggin easy $$$
     
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  12. EXgeMMy

    EXgeMMy Active Member

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    A few years ago my friend lined up for the opening of Tridel's Reve WITHOUT an agent. Tridel saw him in line and gave him "preferred" treatment. basically they just sat with him and answered all his questions about the units and on top of that made sure a unit to his liking was available.

    Multiple agents on the spot tried to convince my friend to use their "free" services. Tridel told them to back off.

    My friend didn't get a discount but Tridel did treat him with respect and did offer him the unit of his choice.

    This was a good 3 years ago now so who knows what's the deal now.
     
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  13. Rocky

    Rocky Active Member

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    Great for him to get good service, however i am not sure if Tridel would drop the level of service should a buyer go in with an agent. How does him not using a realtor make it any different on the end user level if he didn't get any discount ?
     
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  14. myblissfulhome

    myblissfulhome New Member

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    Just a friendly reminder .... there are all types of realtors. Just like there are all types of Lawyers. We aren't all bad *wink*

    Here are some points I see for those who do not use a realtor.

    1) You already have the contract stacked against you. Why go into a negotiation outgunned with a contract completely in the favour of the builder? The builder does not owe you any fiduciary duties. You are their customer and that is all.

    2) Looking for an investment? A realtor should know the market place and though we do not have a crystal ball if you are buying an investment condo future rents and actual carrying cost of the condo must be taken into consideration. Don't get fooled into thinking the "projected" maintenance fees by the builder are realistic after 1 year of registration.

    3) Experienced realtors will know builders and their past projects. For example: There is a builder who kept the top level of the project, and the parking space which was rented out to the owners...none of the parking spaces were available for purchase. A couple of years later the condo was in litigation with the builder. Some issues such as why the parking company wasn't responsible for maintenance of the parking area underground came up and a bunch more that divert from this thread:) The builders past speaks volumes of their ability to build future projects. This also includes what gets promised versus whats gets built. It is never 100%. Does the builder have a history of not being able to fulfill its design concepts?

    4) The general public does not get exposed to platinum or other discounted pricing.

    5) Commissions are never easy. I have never had a client call me up and say I want a condo and I sell them the first one that comes across my desk. There are specific needs for each individual and even if I am offered 5% commission for a condo if my client doesn't like it there isn't much more to discuss.

    6) I spend a significant amount of time showing rentals to tenants. Doing so has given me insightful rental market information that few can learn from browsing MLS. As a home owner your priorities are a little different from a tenant so when you buy an investment condo this background information can be quite useful to answer questions such as: Is a den required anymore? Does parking make a difference? What should I upgrade? Does floor level effect rental value? How will condo registration effect the rental value when so many units go up for lease at the same time? Is the location ideal (thought the price is right)? To that last question consider the developments on Regent Park. It is an upcoming area but it's location is stigmatized. I have had a client have some difficult times getting tenants in one of the buildings here due to this fact alone. I met this client after the building was constructed. As an investment it is sound but the trick to purchasing this condo from plan was to know this in advance prior to spending more than you would expect in return that is reasonable in the short term (or weigh in for longer term objectives).

    7) Going into a show room can dazzle the brains right out of a buyer! It's hard to keep focused on your objectives when you surround by other buyers and the builder's sales people. A good realtor focuses on your needs (including financial ones). The final sale price for a unit never includes all the costs. Emotions can run wild when the disco...I mean show room opens up:)

    8) I would not think for a minute that the commissions are the only contributing factor to pricing a unit. The builder uses realtors to focus attention on the project. However their objectives are to sell to people who do not use a realtor. You would not see a project discounted because realtors were not being utilized. The market determines the price. If consumers didn't buy everything in sight and used their buying power as a collective builders wouldn't have such an easy time.

    Please do not paint us all with the same brush. Pick a realtor with the same effort you pick a house, or another service provider.

    I hope this helps!!
     
    Last edited: Aug 3, 2012
    #14

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