At Wilson Realty Group we have many buyers who are buying new construction. Some of our buyers are purchasing in a multi-family development, either in a condominium or a townhouse community, and are saving thousands. What is discouraging to hear is when a buyer decides to buy new construction alone thinking that they will be able to negotiate with the developer and pocket the commission savings for themselves. Too often, these buyers end up paying as much, if not more, than buyers represented by agents. How is this possible? Let me explain.
Appraisers determine the value of most residential properties through the Market Sales Approach. This appraisal approach looks at previous sales of similar properties and compares them against the property being purchased. Because of this comparison approach developers are required to keep their final sales prices constant, or increasing, within a development to support appraisals and bank financing.
In order to accommodate buyers with agents, developers build in commissions to their pricing models. So when a buyer comes to the developer without an agent the developer simply keeps the commission for himself. The developer does this because they cannot afford to jeopardize future appraisals by having a lower sales price on the books.
What this means to you as a buyer is that the sales price will not go below a certain number regardless of whether the developer sells to a buyer with an agent or without. So would you rather the developer keep the commission, or would you prefer to earn that commission for yourself? Wilson Realty Group gives you that opportunity.
When you use Wilson Realty Group to help you buy your next place, Wilson Realty Group will refund you up to half of our commission! On a $400,000 condo, that translates into a refund of $6,000! Don’t leave money on the table when you are buying new – call Wilson Realty Group today and save thousands!