do real estate agents prefer clients to buy existing homes?

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do they hate it when clients want to build a house instead? do they receive less commission?

-Hottie :X

i want to pay cash for the lot (around 100 K). the house will cost around 350ish and this will also be negotiated through my realtor. the actual house cost will be through a loan.

  1. Reply
    Simpson G
    November 10, 2011 at 3:03 pm

    Do they “hate” it? Making a sale is making a sale. They would rather help clients buy a $ 100,000 piece of land than have them walk away. They would rather create a good client relationship that will get them referrals and potentially build a relationship for the future.

    They don’t receive less commission percentage wise. It’s going to be 3-6%, same as a house. They make less money because the land is probably less expensive than a house would be.

    Reality right now is that unless you have the cash to burn or have some sort of “in” with a builder, it makes no sense to build. Why would I build a house that costs $ 100sqft (for a basic home) + the cost of land when I can buy the same quality house for $ 75/sqft INCLUDING land?

  2. Reply
    November 10, 2011 at 3:36 pm

    Simpson has it correct; until houses go up at least 25%, it makes no economic sense to build new.
    YOU can find a super deal and make it perfect by modifying-updating it.

    when you buy, ALWAYS USE a buyer’s agent, never ever use a listing agent [aka
    dual agent], A dual may not negotiate on his own listing!

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