Quote:
Originally Posted by tvp2003
Nabber,
Also, have you ever heard of realtors steering buyers away from new construction due to commissions (that's what seemed to happen when we were in the market for a condo -- there was an issue as to whether the builder would give the realtor a commission, and perhaps not suprisingly, the realtor suggested we should look elsewhere).
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Generally with presales, the commission is payed in a 50/50 system. 50% soon after the contract is signed, and 50% at completion. For this reason, some impatient realtors may avoid them because they don't want to wait 2-3 years for full payment.
Also, that commision is refundable if the purchaser defaults on their contract. So realtors here assume some risk that they may have to pay back the comission if their purchaser suddenly has no money 2 years later and can't get a mortgage.
Having said that, there are realtors who do very well with presales. With any project we launch, we always do a realtor launch first where realtors get first crack at all the units and at opening prices. For that reason, it may be worthwhile to use a realtor for presales, otherwise you may miss out on all the good units and prices.
We have realtors who bring in 10-20 buyers for each project and make a ton through us without having to show many purchasers to many sites. Thay just all meet there on launch day and joe realtor makes a one day killing by getting all of his purchasers to buy in 1 place at 1 time.