Buying a condo pre-construction without an agent

[airbag]

Does it make any difference to the price? Is it common or even realistic to negotiate with the seller to give you a discount because you're not coming with an agent?

I don't really see what benefit the agent gives you when you are buying a pre-construction unit other than possibly giving you access to early listings.

 

[OolloO]

Does it make any difference to the price? Is it common or even realistic to negotiate with the seller to give you a discount because you're not coming with an agent?

I don't really see what benefit the agent gives you when you are buying a pre-construction unit other than possibly giving you access to early listings.

Some agents will give you part of the condo commission they receive, since it's and easy sale. Plus they'd provide input into getting more clauses into your contract. They also should provide input of the unit based on floor plan. eg. south vs north facing, near garbage chute or elevators, etc...

Otherwise, in today's market, very few condo builders negotiate on price.

If you already pre-registered (submitted your name on a form or on line for the building) your out of luck getting an agent for that construction.

 

[airbag]

Thanks for the clear response!
How much is typical agent's commission on pre-construction condos and how much should you expect the agents to give you back?

 

[OolloO]

Thanks for the clear response!
How much is typical agent's commission on pre-construction condos and how much should you expect the agents to give you back?

It depends on the builder. I've seen some range from 2 percent to as much as 5 percent. It would be up to the agent, I would suppose it be based on if you already know what you want.

I sent you a PM with some additional info.

 

[Wooba]

The very first condo I bought gave me a $3000 rebate on closing because I didn't use an agent. Ironically, I was very green in real estate at the time and it was something I never considered or asked for, it was just given to me automatically as part of my contract.

 

[James]

Some agents will give you part of the condo commission they receive, since it's and easy sale.
...

I agree, it's such an easy sale that I don't see much value in using an agent at all. That said, I'm not aware of any realtors who give any commission back on a pre-con condo sale. This isn't the norm, is it?

 

[OolloO]

I agree, it's such an easy sale that I don't see much value in using an agent at all. That said, I'm not aware of any realtors who give any commission back on a pre-con condo sale. This isn't the norm, is it?

Using an agent is free for pre-construction, considering the builder is paying for it. It's funny that Realtors have a negative prejudice against them even in this "free" case. I've dealt with agents and have a negative opinion of them as well. Although there are a few good ones.

I would understand possibly not using one if you had a $3000 incentive, which I haven't seen often.

It may not be the norm, but it's somewhat common to see Realtors give a portion of the commission back.

 

[airbag]

Using an agent is free for pre-construction, considering the builder is paying for it. It's funny that Realtors have a negative prejudice against them even in this "free" case.

Well technically it's not "free" but rather "built into the price". It would be nice if there was an option to opt out to get the original price.

 

[OolloO]

Well technically it's not "free" but rather "built into the price". It would be nice if there was an option to opt out to get the original price.

Yes, you are absolutely right. Hence my in quotes "free". If it's built in and paid for, why not use it.

To each their own I guess...

 

[James]

Considering that the buying agent's commission is built into the selling price, why wouldn't builders be inclined to offer a discount if a buyer simply walks in and deals with their assigned selling agent directly?

 

[cdr108]

Considering that the buying agent's commission is built into the selling price, why wouldn't builders be inclined to offer a discount if a buyer simply walks in and deals with their assigned selling agent directly?

higher profit for the builder if they don't have to pay the added commission even though it's built into the price.

i've seen them offer 4-5% to the referring agents ... i've sometimes seen they give that to buyers off the street when the building is near completion on the few units left

 

[OolloO]

higher profit for the builder if they don't have to pay the added commission even though it's built into the price.

Now I'm curious. Is it the selling agent/brokerage that keeps the buying agent's commission if the buyer comes in alone. Or is it the builder? Maybe a split of some sort?

 

[neuhaus]

There is really no reason to get an agent when you are purchasing a preconstruction condo. The purchasing process is very easy and straight-forward.
You just need a decent real estate lawyer to review and handle all the paperwork.

I asked for a 3% discount on my purchase price for not using an agent which I didn't have a problem getting.
I don't see why you couldn't get some kind of discount when the buyer comes in alone, the developer would have to pay for the agent's fee anyways if you were to bring your own agent in. Seems like developers are looking for quick sales.

 

[simonhuang]

Yes, it makes big difference with and without agent. You pay the same price to the builder with and without agent.
Agents offer you professional services and advice on selecting pre construction condos.
Some agents may offer you some cash-back when you purchase pre construction condos.
Most builders release the very first pre construction condo units for sale at VIP broker preview price which is not available to general public yet. This VIP broker price is very attractive and can save you thousands of dollars. You would have to work with a agent who is one of the VIP brokers for the builders in order to get this promotional price. You would be very among very first buyers to choose the unit at promotional price. Certainly, this is beneficial to any buyers.

Thanks.

Best regards,

Simon Huang
Sales Rep
Living Realty Inc. brokerage
Cell 416-400-2363
Office 905-896-0002
Webpage: www.housecondonow.com
I represent home buyers and help home buyers to locate pre-construction, new and resale
properties in GTA.

 

[interested]

Yes, it makes big difference with and without agent. You pay the same price to the builder with and without agent.
Agents offer you professional services and advice on selecting pre construction condos.
Some agents may offer you some cash-back when you purchase pre construction condos.
Most builders release the very first pre construction condo units for sale at VIP broker preview price which is not available to general public yet. This VIP broker price is very attractive and can save you thousands of dollars. You would have to work with a agent who is one of the VIP brokers for the builders in order to get this promotional price. You would be very among very first buyers to choose the unit at promotional price. Certainly, this is beneficial to any buyers.

Thanks.

Best regards,

Simon Huang
Sales Rep
Living Realty Inc. brokerage
Cell 416-400-2363
Office 905-896-0002
Webpage: www.housecondonow.com
I represent home buyers and help home buyers to locate pre-construction, new and resale
properties in GTA.

Certainly very beneficial for the agents.
What has happened is the real estate agents have been bought and paid for by the developers and in return they bring in their clients. Essentially, using real estate agents as a feeder tray to bring in clients. The problem is some of us do not need an agent to do a Precon. The fact that agents and builders are doing this is adding to the affordability problem and just injecting middle men into a process where they are not necessarily needed. And the payoff is that the "VIP broker" for being bought off by the developer is not working for his client but simply inserted into the process.
I get it and understand it but the response above, allbeit reality, is just a self serving justification for a ridiculous system.
Tell me that the VIP broker is representing his client. I would strongly suggest while he/she does this, it is at a significant cost to the client, and as I have said, an unnecessary one forced about the buying public.