Quote:
Originally Posted by ggnlars
We just went through the process. The MLS agent gets a percent of the sale, the TV agent is on salary. I think they have a quota, and likely will get bonuses. In the latter, your sale price is not as dominant.
In considering new vs preowned, you need to consider that Florida is hard on building materials and such. Figure the life on items like roofs, HVAC's etc to be 50 to 70 percent of what your used to.
That is particularly important when DIY is less of an option.
We ended up building. The lot choice was ours, the builder would and will do virtually all of the add one before closing at a competitive price. These are all in at closing, where doing it after, you have to have ownership paper work to start and then find and get on their(the new company) list.
The time was important to us.
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Just some corrections on the above post!
All sales representatives working for the developer are independent contractors license in the state of Florida with a Florida sales person or Florida brokers license. As far as your commission comments the truth is the sales rep gets 1.50% commission when they sell a preowned home based on sales price. They get 1.75% commission based on sales price and normally a bonus to sell a new home. It's 1000 times easier to sell a new home then it is a preowned because it seems nobody thinks a Home Inspection is necessary on a new home, there are no negotiations on price and the developer sets the closing date with no contingencies allowed! The one thing that most people do not realize is all sales representatives and the developer always represents the seller in a single agency position. Which means a buyer has no representation and is on his own to figure out what reality might be sitting near the house. Have you ever wondered why people sell right after a year of being in a home? You may want to ask! By the way on the new home you do have a one year resell restriction to be able to make any profit on the home sale!
As far as a Realtor they also are licensed in the state of Florida and are independent contractors and also get paid a commission based on the sales price. Their commission split is determined by the broker that they work for and their experience level! 99% of them work as a transaction broker which means they have responsibilities both to the seller and the buyer. All material facts have to be disclosed by the seller to the buyer! Just ask and they will be glad to show you a form that shows what the responsibility is to you the buyer or seller! All realtors also can work as an exclusive buyers agency which means they can represent the buyer as a single agent. Just ask and they will show you how!
The comment about a preowned being more expensive can be true! But it is generally based on physical location, what is behind the house meaning privacy or another house, what upgrades have been installed in the home and the square footage! The most expensive homes are located within 5 to 10 minutes of Lake Sumter Landing since in a preowned home situation that is the most demanded area! Most new homebuyers find that they spend at minimum $50,000 to add all the upgrades that they want either at the time of build or after build. There are a lot of upgrades that the developer will not install and you will have to do after-the-fact like laminate flooring. A lot of folks figure out being near Lake Sumter Landing is a good thing based on where the majority of the major shopping/restaurants are currently located!
But you definitely need to work with both because at any given time it's about a 50-50 split on the preowned homes available between the two groups!