Newly Constructed housing, but cant use agent

**Raibaru** · 12-14-2009, 06:51 PM

Here in Maryland it's common practice for newly constructed communities to not allow you to bring an agent in unless they accompanied you on the first visit to the community. Since my brother and I found this community by chance, we really didn't think that far ahead and now we're concerned it's gotten us in trouble.

Through our credit union, I've been pre-approved for only 225k and my brother for 235k. Unfortunately, the houses start at 249k and the builder offers $8,000 in closing cost help if we use their lender.

Is it possible that their lender would actually pre-approve us for a higher amount? I have about 40k in savings, make about 1200 every 2 weeks, and don't want to spend more then 1300 a month. But I am fine putting it all down.

I'm also curious you can offer me some advice when trying to negotiate the price? I've found nearly every community in Maryland offering new construction doesn't negotiate prices. They simply offer you more incentives to buy by giving you free additions and such.

The only real bargaining chip we have (if you can call it that) is that we both want our own place in the community, but neither have been pre-approved to pay for it.

**Greg** · 12-15-2009, 05:44 AM

If you have been approved for $225k and you add your $40k to that it totals $265,000 which should be enough to buy one of these houses. Talk to your credit union to see exactly what they mean with their approval.

The last buyer we had who wanted to use the state credit union ended up going with one of our recommended mortgage brokers because the credit union would not lend her as much money as she could get on the open market. The credit union was also charging a higher rate.

Talk to some local lenders and see what is available.

**Raibaru** · 12-15-2009, 06:15 AM

Sorry for the confusion, the actual loan amount was for 200k with 25k down I believe. Think this was the 1300 a month point they quoted me.

I haven't spoken to the lender associated with the builder. Maybe I'll get in touch with them and see if I can set up an appointment. I know the lender associated with Century21 said I didn't qualify for a loan through them due to credit history. But I got approved through my credit union with no trouble the following week. So don't know what happened there.

**Greg** · 12-16-2009, 06:02 AM

I will say it again with more emphasise. Talk to some local lenders. Keep calling them until there are no more to talk to. Not all lenders have the same programs available. I had to talk to 5 or 6 before I found one who would give me a loan way back when I bought my first house.

**BoiseRealEstateSoup** · 12-16-2009, 11:51 PM

I'm amazed that there is a law that forbids you to bring an agent! You should be able to have any representation you want, but what do I know I do real estate in Boise, Idaho.

**REITrainingWhse** · 12-17-2009, 04:39 AM

MY QUESTION is WHY!!! Why bring in an agent - you found the house - What are they going to offer you?? A hand to hold??

Heck, I am not an agent - but if you want to throw 3% - 6% of the purchase price to me - for holding your hand - let me know! Let's see 3% of $250... that's something like $8K, sure I can fly out there to pick that check.

**BoiseRealEstateSoup** · 12-17-2009, 07:55 AM

Originally Posted by REITrainingWhse

MY QUESTION is WHY!!! Why bring in an agent - you found the house - What are they going to offer you?? A hand to hold??

Heck, I am not an agent - but if you want to throw 3% - 6% of the purchase price to me - for holding your hand - let me know! Let's see 3% of $250... that's something like $8K, sure I can fly out there to pick that check.

Because he's trying to negotiate terms and without the expertise of someone who knows how to do this and dot every i and cross every t, then there is a good chance that he an his brother aren't going to get the best deal.

Believe it or not, a real estate agent does far more than just 'find houses' for people. Bah, I'd prefer it if my clients found their own home, they're the ones who will be living there and paying for it. It's my job as a Realtor to keep my clients protected from hurting, money starving builders and their lenders and to keep then rational rather than emotional (among many other things).

I'm in this exact circumstance right now. I have an out of state buyer who wants to build. She's done some of her own research in addition to mine, and has chosen a particular builder. She will be paying me a fee. Why? To hold her hand? Yes. AND to make sure that the builder she chose and the location that she wants to build is going to be an equitable situation and in her interest.

Raibaru's real problem here could be larger than what he's eluding to. Without an agent, he has only salespeople and builders telling him that this subdivision is the best place to buy and now is the best time to do it! While there may be a good chance that that may be true, my suspicion is that it's not the only circus in town.

Now, here's the question: Who are the ones who are going to offer him the statistical data, zoning data, and other information that this buyer needs to make a well informed decision? That's why he needs an agent.