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krazycanuck · 05-12-2014, 01:33 AM

I work with a builder, and one of the first posts is right. Once you've come in a sales centre on your own, you can't use a realtor for the purchase. In fact, if a realtor agrees to work on your behalf now, they are putting their own licence at risk as it is punishable by the real estate board.

I would suggest that you actually have more leveraging power without a realtor to negotiate the price on a new home. Most builders will pay 3.5% of the first $100,000 and 1.5% on the remaining amount to a realtor. That's almost $10,000 on a $500,000 home. That money either comes from the profit of the home, or in some cases part of the sales person's commission. While the rule is they won't markup the home if you use a realtor, they also will factor in that they are probably losing $7,000 to $10,000 in their profit margins, and will be less likely to want to lose anymore by negotiating down in price.

05-12-2014, 01:33 AM	#36
krazycanuck Won the Worst Son Ever Award Join Date: Oct 2006 Location: Sherwood Park Exp:	I work with a builder, and one of the first posts is right. Once you've come in a sales centre on your own, you can't use a realtor for the purchase. In fact, if a realtor agrees to work on your behalf now, they are putting their own licence at risk as it is punishable by the real estate board. I would suggest that you actually have more leveraging power without a realtor to negotiate the price on a new home. Most builders will pay 3.5% of the first $100,000 and 1.5% on the remaining amount to a realtor. That's almost $10,000 on a $500,000 home. That money either comes from the profit of the home, or in some cases part of the sales person's commission. While the rule is they won't markup the home if you use a realtor, they also will factor in that they are probably losing $7,000 to $10,000 in their profit margins, and will be less likely to want to lose anymore by negotiating down in price.