The majority of people who build their dream homes in the Raleigh/Research Triangle area don't get all they paid for!  They either don't know, totally ignore or work with incorrect information when they don't take advantage of a very valuable asset during their home building process that would cost them - NOTHING! 

In the Research Triangle area high-end homes market ($1 million and up) the vast majority of speculative built and presale homes are built in existing and/or newly developing subdivisions.  Couples who want to build their dream home will drive through subdivisions, having homes in the price range they are interested in, and talk to the on-site agent about available homes and/or lots.  The on-site agent will show them homes and provide information about them and the available lots.  Most of the lots the couple may become interested in are owned by the builders who comprise the developers building team for the subdivision.  If the couple decides to get serious about building and about a specific lot, the on-site agent will introduce them to the builder who owns the lot of interest.  If the couple hits it off with the builder the builder will discuss what they have in mind with them, review any plans or other information they may have collected and then introduce them to the Home Designer or Architect he usually does business with.

During the entire process of finding a lot, finding a builder, finding a Home Designer or Architect and developing the home plan, selecting an Interior Designer and the subsequent selecting of all the materials, appliances, etc. that will go into the home, the couple has no one to directly assist them and represent their interests or to review the contract the builder will ultimately present to them.  The on-site agent will most certainly provide some assistance but they are employed by the real estate company that is marketing the subdivision for the developer and, in so doing, directly represent the interests of the builder/seller. Thus, unless the couple is brought to the on-site agent by a Buyers Agent or unless the couple finds and introduces an agent as their agent before the process gets underway, they have no one on their side of the table to assist them, to make suggestions and to provide the information that years of experience working with on-site agents and builders that their agent (if the use one) should have.

Often times the couple having the home built will purposely not use a Buyer's Agent because they are of the mistaken opinion that they are saving the Buyer's Agent portion of the commission (in this area that is usually 2.5% of the 5% new homes commission) and that the builder will have that amount to use to give them a lower price. This is a myth.

The real estate company that markets for the developer has a marketing agreement with the developer which specifies how much they will get and how the commission will be divided.  The builders in the subdivision agree to pay the 5% commission plus another 1% marketing fee for the services provided by the on-site agent(s) and the agents who bring buyers or pre-sale candidates to the subdivision.  Half of the commission of a sale (either of a new home or a presale) goes to the on-site agent and half to the Buyer's Agent - if - the Buyer is represented by a Buyer's Agent.  The actual split of the 2.5% the on-site agent gets is determined by the agreement the on-site agent has with the house (the real estate company marketing the subdivision).  If there is not a Buyer's Agent involved the 2.5% that would have gone to the Buyer's Agent does NOT go to the builder nor does he or she have it to use when negotiating a price with the Buyer.  That 2.5% goes to the Developer and since the Developer is not involved in the transaction it is not, as previously stated, available to negotiate a lower price.  Incidentally, the portion of the 2.5% the Buyer's Agent gets is determined by the split arrangement that exists between the agent and the firm he or she is with.

This is not to say that all agents get deeply involved in the presale process with clients they may bring to a subdivision.  In fact very few do.  Quite often, once a couple is introduced to the on-site agent, the Buyer's Agent will let the on-site agent carry the ball and do little more than show up at the close for a commission check.  This is because they don't know the building process, don't know the builders and don't want to get involved in all the time and effort it takes to assist a couple in all that goes on during the time frame of building which can anywhere from seven or eight months to as much as two years, depending on the price and size of the home.  If problems arise during the time the home is being built a couple may call their agent for assistance but that assistance is often not very satisfactory since the agent has little or no knowledge of the circumstances involved in the problem.

The builders I work with tell me that very few of the presales they do are with couples who have been introduced to them by real estate agents.  In determining why this is the case I have found it is because of the two factors discussed above:  

1. The Buyer's belief that they are saving commission money by not using a Buyer's Agent and not knowing the valuable services an experienced agent has to offer  

2.The lack of knowledge and/or experience in working with couples involved in presale process on the part of most real estate agents. 

There is much that a Buyer's Agent can do to help the entire process of finding a lot, finding a builder, finding a Home Designer or Architect, finding an Interior Designer, working with the onsite agent be an interesting and pleasant one for the Buyers. Remember, all of this costs the Buyer(s) - NOTHING - SINCE THE BUILDER PAYS THE COMMISSIONS!  Yes, the commission is built into the price of the home but it will be whether the Buyers use a Buyer's Agent or not.

If the subdivision the Buyers build in is one that is owned by one or two builders who do not have a marketing agreement with a real estate company or if the Buyers have a home built on a tract of ground they own the Buyer's Agent commission may not be involved.  Again, however, Buyers in such situations who do use a Buyer's Agent quite often find the commission they pay an experienced agent for their assistance was worth every penny.

If you are thinking of building your dream home or buying a home in the Traingle it would be my pleasure to discuss what you want to do with you. There is no cost for this service and I can show you aids to your home building process that no other agent in this area can or does offer.  I look forward to hearing from you.