Yankee_in_TX Posted May 11, 2009 Share Posted May 11, 2009 Sorry, no idea how to phrase the topic because I have a lot of questions.1. Urbanliving.com - we are thinking about working with them. However I have read it is urbanliving.com, and not the builder, who you deal with for post-walkthrough fixes???? Can anyone on here verify that? Does not sound promising.2. How does new construction in Houston work? We are not using a Realtor (I am a lawyer). In theory, doesn't that mean we should be able to negotiate 2-3% extra off the price? Or do enough people not use Realtors that sellers ignore that bargaining tool? Does this differ if it is not new construction?3. Anyone heard of Titan Homes? We really like one of theirs, but their website is hardly helpful:http://titandevelopments.com/TitleMenu/About%20Us.htm4. Is it true that lenders charge .25% more for condos and townhomes?Thanks in advance! Link to comment Share on other sites More sharing options...
kylejack Posted May 11, 2009 Share Posted May 11, 2009 You'll find many people unsatisfied with urbanliving on this forum. Its anyone's guess why they're so incompetent and bad at returning phone calls. Link to comment Share on other sites More sharing options...
Mr. Chenevert Posted May 11, 2009 Share Posted May 11, 2009 Generally, if you buy from a builder in Houston, you will find it difficult to save the 2-3% commission.They do not want to lower their sales price because it would lower their comps, which would make it difficult to sell another place at a higher price.Since you are not an agent, they cannot legally give you the commission. Google 2percent2buyer Link to comment Share on other sites More sharing options...
Yankee_in_TX Posted May 11, 2009 Author Share Posted May 11, 2009 They do not want to lower their sales price because it would lower their comps, which would make it difficult to sell another place at a higher price.Ohhhhhh. So does that fly with individual sellers or do sellers' agents tell sellers not to think that way? Link to comment Share on other sites More sharing options...
4thGenHoustonian Posted May 11, 2009 Share Posted May 11, 2009 I can't help you with the urbanliving or Titan homes, but in Texas a lawyer can represent himself as a real estate agent for his personal transactions and is entitled to the agent fee. My husband is an attorney and we purchased a new home; my husband filled in his name as the agent on the contract and the builder knocked 3% off of our purchase price. Alternatively, a builder may send you a check after closing; this has happened with lawyer friends. In that case, it counts as income and you have to pay taxes on it. Link to comment Share on other sites More sharing options...
Yankee_in_TX Posted May 11, 2009 Author Share Posted May 11, 2009 I can't help you with the urbanliving or Titan homes, but in Texas a lawyer can represent himself as a real estate agent for his personal transactions and is entitled to the agent fee. My husband is an attorney and we purchased a new home; my husband filled in his name as the agent on the contract and the builder knocked 3% off of our purchase price. Alternatively, a builder may send you a check after closing; this has happened with lawyer friends. In that case, it counts as income and you have to pay taxes on it. From TREC: Q: I am the listing broker. An attorney has presented an offer from a buyer that the attorney is representing and wants me to share my commission. Can I do this? A: No. Section 1101.651(a) and Section 1101.652((11) of the License Act prohibit a licensed broker from sharing a commission with anyone who was acting in the capacity of a broker but was not licensed as a broker. In cases such as this, the listing broker still needs to present the offer to the seller. The listing broker should inform the seller that the broker is prohibited from sharing the commission with the attorney and that the attorney and the seller need to work something out between themselves regarding any commission to be paid to the attorney. The listing broker can agree to reduce the commission if requested by the seller without violating the prohibition on splitting. So my next question, if the builder won't lower his price, what are creative but legal ways around this? Or maybe just deal with an agent who ACTUALLY conveys the offer to the builder? Link to comment Share on other sites More sharing options...
sarahiki Posted May 11, 2009 Share Posted May 11, 2009 From TREC:Q: I am the listing broker. An attorney has presented an offer from a buyer that the attorney is representing and wants me to share my commission. Can I do this? A: No. Section 1101.651(a) and Section 1101.652((11) of the License Act prohibit a licensed broker from sharing a commission with anyone who was acting in the capacity of a broker but was not licensed as a broker. In cases such as this, the listing broker still needs to present the offer to the seller. The listing broker should inform the seller that the broker is prohibited from sharing the commission with the attorney and that the attorney and the seller need to work something out between themselves regarding any commission to be paid to the attorney. The listing broker can agree to reduce the commission if requested by the seller without violating the prohibition on splitting. So my next question, if the builder won't lower his price, what are creative but legal ways around this? Or maybe just deal with an agent who ACTUALLY conveys the offer to the builder? Try negotiating for free upgrades rather than money off the asking price. Or an allowance for window treatments, or for landscaping (if there is land to scape). This won't show up on their comps. Link to comment Share on other sites More sharing options...
4thGenHoustonian Posted May 11, 2009 Share Posted May 11, 2009 From TREC:Q: I am the listing broker. An attorney has presented an offer from a buyer that the attorney is representing and wants me to share my commission. Can I do this? A: No. Section 1101.651(a) and Section 1101.652((11) of the License Act prohibit a licensed broker from sharing a commission with anyone who was acting in the capacity of a broker but was not licensed as a broker. In cases such as this, the listing broker still needs to present the offer to the seller. The listing broker should inform the seller that the broker is prohibited from sharing the commission with the attorney and that the attorney and the seller need to work something out between themselves regarding any commission to be paid to the attorney. The listing broker can agree to reduce the commission if requested by the seller without violating the prohibition on splitting. So my next question, if the builder won't lower his price, what are creative but legal ways around this? Or maybe just deal with an agent who ACTUALLY conveys the offer to the builder? This addresses when an attorney is a principal in the transaction: http://www.trec.state.tx.us/pdf/articles/other/TAR_001.pdf I'm sorry you're having so much trouble. We have several friends and coworkers who are attorneys and it has never been an issue. The agent that represented our builder was familiar with it. You would think that builders would want to sell a home these days. They are going to pay a commission no matter what so what's their problem with who they pay it to? Link to comment Share on other sites More sharing options...
Yankee_in_TX Posted May 11, 2009 Author Share Posted May 11, 2009 This addresses when an attorney is a principal in the transaction:http://www.trec.state.tx.us/pdf/articles/other/TAR_001.pdfI'm sorry you're having so much trouble. We have several friends and coworkers who are attorneys and it has never been an issue. The agent that represented our builder was familiar with it. You would think that builders would want to sell a home these days. They are going to pay a commission no matter what so what's their problem with who they pay it to?Thanks, I'll look at that. We've only been in contact with urbanliving.com, who didn't even contact the builder about it. They just said 'the builder will say no.' They wanted us to raise the agreed upon sale price 3% before the seller would contribute 3% (according to them).Are builder on new construction generally willing then to roll the 3% into closing costs - that way they don't lower the published sale price? Link to comment Share on other sites More sharing options...
4thGenHoustonian Posted May 11, 2009 Share Posted May 11, 2009 I don't know about closing costs; it probably depends on the builder. In my limited dealings with it, the builder has either taken 3% off the purchase price (which is nice) or else given the lawyer representing himself a check after closing. In the latter case, you would just have to have the closing money, then reimburse yourself, minus the taxes of course. It sounds like urbanliving.com sees you as a person without a realtor and wants to keep the entire commission for themselves. Good luck! Link to comment Share on other sites More sharing options...
EMME Posted May 11, 2009 Share Posted May 11, 2009 Sorry, no idea how to phrase the topic because I have a lot of questions.1. Urbanliving.com - we have been flat out lied to, but eh, whatever. However I have read it is urbanliving.com, and not the builder, who you deal with for post-walkthrough fixes???? Can anyone on here verify that? Does not sound promising.2. How does new construction in Houston work? We are not using a Realtor (I am a lawyer). In theory, doesn't that mean we should be able to negotiate 2-3% extra off the price? Or do enough people not use Realtors that sellers ignore that bargaining tool? Does this differ if it is not new construction?3. Anyone heard of Titan Homes? We really like one of theirs, but their website is hardly helpful:http://titandevelopments.com/TitleMenu/About%20Us.htm4. Is it true that lenders charge .25% more for condos and townhomes?Thanks in advance!All I can say is document document document everything to do with Urban Living. If UL had something that I really really wanted, I would still have NOTHING to do with them. UL purchased some land from us and after being threatened by them, we had to get a lawyer to get him to show up for closing after having been stood up and lied to on two previous closing dates, where we showed up for closing, signed all the closign documents the owner of UL no showed and no called. This was over a period of three agonizing months from the first scheduled closing date to the final one. If you can avoid Urban LIving, do so, but if you can't avoid them...document document document. And let me say that I am being conservative and greatly holding back on all the things the owner of this company did during the course of our transaction. Slimy slimy guy. Link to comment Share on other sites More sharing options...
diggity Posted May 11, 2009 Share Posted May 11, 2009 If you can avoid Urban Living, do so Link to comment Share on other sites More sharing options...
rbarz Posted May 11, 2009 Share Posted May 11, 2009 2. How does new construction in Houston work? We are not using a Realtor (I am a lawyer). In theory, doesn't that mean we should be able to negotiate 2-3% extra off the price? Or do enough people not use Realtors that sellers ignore that bargaining tool? Does this differ if it is not new construction?I would say more often than not you can negotiate it out of the price, but there are many times you cannot. It is much easier to do with individual sellers. I had the same problem and it was enough to make me become a Realtor. The creative way around the 3% rule is to bill for your time as an attorney and amazingly come out to 3%! 4. Is it true that lenders charge .25% more for condos and townhomes?At least! You also might have to put down more money. And if it is a condo and considered "non-warrantable" then you're probably going to have to pay cash, because slews of banks have stopped lending all together on those units. ("non-warrantable" condos are those that have a certain percentage of non owner occupied units. It use to be 50% to 60% owner occupied units made the complex warrantable now the few banks that will loan on them want it to be something like 80% owner occupied!) Link to comment Share on other sites More sharing options...
Yankee_in_TX Posted May 12, 2009 Author Share Posted May 12, 2009 We bailed on the home. Honestly, it came down to it just wasn't the home for us. More shopping. Having gone through the contract signing process, I now know what to expect and will be firm with our offer. Also, we are not afraid to walk away, we are not in a hurry.Thanks to you guys - I will say $x purchase price and 3% rolled into closing or cash back after the fact, bottom line, only and final offer.So no one knows anything about Titan Developments? Worries me their website was last updated in 2004ish.... Link to comment Share on other sites More sharing options...
EMME Posted May 12, 2009 Share Posted May 12, 2009 We bailed on the home. Honestly, it came down to it just wasn't the home for us. More shopping. Having gone through the contract signing process, I now know what to expect and will be firm with our offer. Also, we are not afraid to walk away, we are not in a hurry.Thanks to you guys - I will say $x purchase price and 3% rolled into closing or cash back after the fact, bottom line, only and final offer.So no one knows anything about Titan Developments? Worries me their website was last updated in 2004ish....Probably a good idea to listen to and trust your gut. Link to comment Share on other sites More sharing options...
diggity Posted May 12, 2009 Share Posted May 12, 2009 I've never heard of Titan Homes, but that doesn't mean much as there are dozens of tiny little builders in this part of town.One thing I found curious was that Urban Living doesn't have any active listings built by Titan Homes. All I could pull up were some listings by Coldwell. What area are these properties in? Link to comment Share on other sites More sharing options...
Yankee_in_TX Posted May 12, 2009 Author Share Posted May 12, 2009 I've never heard of Titan Homes, but that doesn't mean much as there are dozens of tiny little builders in this part of town.One thing I found curious was that Urban Living doesn't have any active listings built by Titan Homes. All I could pull up were some listings by Coldwell. What area are these properties in?Sorry, didn't mean to be confusing. The UL home was a 'Sawyer Brownstone,' and we decided it wasn't for us.We are still looking, but very interested in a property built by:http://titandevelopments.com/TitleMenu/About%20Us.htm (the specific properties are not listed on this website) Link to comment Share on other sites More sharing options...
Yankee_in_TX Posted May 21, 2009 Author Share Posted May 21, 2009 Starting to worry about my Titan Homes. Maybe it's nothing, but the first home in the 'development' we're looking at sold in November of 2008; and there's still roughly 4 our of 8 on the market....?Still can't find any infor other than their outdated website with e-mail addys that bounce back. And they've dropped $10,000 in asking price since we started looking (unless agents sometimes put one price on a flier and another on HAR). Link to comment Share on other sites More sharing options...
diggity Posted May 21, 2009 Share Posted May 21, 2009 The market has been pretty slow in the Shady Acres area for about a year now so I'm not too surprised that they're having trouble. Link to comment Share on other sites More sharing options...
Yankee_in_TX Posted May 21, 2009 Author Share Posted May 21, 2009 The market has been pretty slow in the Shady Acres area for about a year now so I'm not too surprised that they're having trouble. So the market in Shady Acres isn't necessarily all 'new' (as in last 3-6 months) as opposed to overloaded inventory? Hrrrmmm.... Definitely the downside of not using a Realtor I looked up our other property of interest, 22nd near Durham. Noticed they've been selling since 8/08 (last unit though), and despite a hefty asking price, many sold in the next price bracket down (as least $20k off list price). BTW, what part of town is that considered? Link to comment Share on other sites More sharing options...
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