How to Save Money When Buying a New Home
If you are thinking about buying a new home, don’t miss an opportunity to save money. Everyone likes to compare the best value on products or services, and will take advantage of specials or discounts in order to save money. What about buying a new home from a builder?
How do you save money when buying a new home? Home builders may offer what is called a broker co-op, which is a sales commission offered to a real estate agent as an incentive to show clients their new homes. The sales commission may range from 3% to 4% of the sales price.
Many real estate agents are now offering to share their commission with their home buyer clients. Before making an offer to buy a new home, a buyer can make an agreement with an agent to represent them, in exchange for a share of the commission paid by the home builder.
The amount of money a buyer can save depends on the share of the commission, which is negotiable with the agent, and the sales price of the home. For example, buying a new home with a sales price of $300,000, with a 2% share, would save the buyer $6,000.
The buyer can receive a check at the close of escrow, or the money may be applied to the down payment or closing costs, providing there are no restrictions from the mortgage lender, or state laws that regulate real estate transactions.
Most new home builders don’t usually advertise a broker co-op offering, so the buyer, or the buyer’s agent would have to ask. The home builder may have a requirement for the buyer’s agent to be with them when visiting the office, or signing paperwork for buying a new home, so be sure to clarify the rules. A little time spent could mean a lot saved.
