Pre-Construction condo without agent?

[BuildTO]

I was interested in a pre-construction unit, and quickly found an agent (recommended by two friends). As a buyer, it cost me nothing, but it gave me peace of mind. The agent handled everything, advising me on the project, the unit, upgrades, etc. She made sure everything was in order and that I was not in any way deceived, misled, or taken advantage of. And when I decided to pull out of the deal within the 10-day cooling off period, she took responsibility for the paperwork and made sure that the cancellation was completed properly.

The only problem is that you need to find out from the sales office whether that particular project will cooperate with your agent, as not all of them allow outside agents to come in.

 

[Mercury]

make sure you do not register with the seller at the sales office, otherwise the seller won't allow you to bring an agent.

That said; Once you register directly with a builder, on their website or their sales office, the sales agent you may have used is removed from the transaction.

I made this mistake myself with one builder. I was stunned when I was told they would not pay my agent because I had already registered directly. I was majorly upset with this builder in particular until I found out that this is apparently common industry practice.

I still don't get it. I'm new to this, but I don't think I'm stupid or naive. I was prepared to be talked down to, lied, taken advantage of, ripped off, or even outright robbed. It makes sense for a vendor to do these things because it benefits them.

But how does this policy of excluding agents once the customer has signed up help anyone?

A customer who wants to work through an agent will in all likelihood walk away from the sale if told they can't bring their agent. And if one is working through an agent, why does it matter to the builder who registers? The end result is the same: the customer wants to deal through an agent, or there's no sale.

I can only imagine there must be a subset of people who want an agent, will mistakenly sign up, and when told they can't bring their agent anymore will nevertheless continue with the sale, despite having just received the equivalent of a slap in the face. ("Please, sir, may I have another"?)

This is the only situation I can imagine in which the builder would benefit from such a policy, but it seems these cases would be far outnumbered by those who simply walk away because of it.

So can someone please explain to me why this policy exists? My head hurts thinking about it.

 

[gei]

I made this mistake myself with one builder. I was stunned when I was told they would not pay my agent because I had already registered directly. I was majorly upset with this builder in particular until I found out that this is apparently common industry practice.

I still don't get it. I'm new to this, but I don't think I'm stupid or naive. I was prepared to be talked down to, lied, taken advantage of, ripped off, or even outright robbed. It makes sense for a vendor to do these things because it benefits them.

But how does this policy of excluding agents once the customer has signed up help anyone?

A customer who wants to work through an agent will in all likelihood walk away from the sale if told they can't bring their agent. And if one is working through an agent, why does it matter to the builder who registers? The end result is the same: the customer wants to deal through an agent, or there's no sale.

I can only imagine there must be a subset of people who want an agent, will mistakenly sign up, and when told they can't bring their agent anymore will nevertheless continue with the sale, despite having just received the equivalent of a slap in the face. ("Please, sir, may I have another"?)

This is the only situation I can imagine in which the builder would benefit from such a policy, but it seems these cases would be far outnumbered by those who simply walk away because of it.

So can someone please explain to me why this policy exists? My head hurts thinking about it.

i have no idea what the legalities or the rationale is behind this either.

all I know is that when I walk into a sales center by myself i always leave fake info when i register anyway. i suggest everyone else do the same.

 

[urbandreamer]

^I always sign my name "George W Bush" and leave my address as the "white house."

I suggest others use the future address of the project in question.... with the name of the builder.

 

[rpgr]

I registered with a pre-sale condo but ended up purchasing through an agent because I had 0 access to the units I wanted directly through the sales office.

Had 0 effect on me

 

[dosbox]

That was an absolutely HORRENDOUS "documentary". It was no different than the pitch real estate agents were throwing at me when I was looking to buy.

"OMG!! LOOK WHAT CAN HAPPEN... THE TERROR!! DONT EVEN THINK ABOUT BUYING WITHOUT AN AGENT!!"

That wasn't the impression I walked away with - though the shady agent was a bit eye-roll inducing. They did hype up the need for a good lawyer, but the rest of it seemed to be basic "buyer beware" advice - useful for novice buyers.

 

[cabbagetowner]

real estate agents out there will probably disagree, but i don't think you ever need an agent when you buy. go dual agency whenever possible. with preconstruction condo, what value can they possibly provide...go thru the brochures with you...

 

[gei]

they are just as useless for selling mind you. thousands of dollars in commissions just to get your place listed on mls? please...

no one is better suited to sell your own house than yourself.

 

[alafleur]

When in doubt, do what Urbandreamer and Gei have suggested, just write down fake info on the registration sheet. Or, if you are working with an agent already, just write down their name and contact info.

 

[bornandbredinto]

Whether or not you use an agent, you still pay the same price the builder lists the unit at. May as well take an agent in that case...not costing you anything. I've used an agent before and received a rebate from his commissions.