I think you misunderstand the role of an agent, especially with respect to #2. Your agent is not responsible for riding herd on the builder in any way whatsoever. That is your job. Please, for your own sake, check some basic real estate guides out from the library and educate yourself about home buying and home building. You might also start following the "Building a home forum." Pay attention to the many cautionary tales about builders who fail to live up to their promises. If you are serious about this purchase, start checking your builder's reputation now.

I can help answer #5. Everything is negotiable, and you should make the best deal you can. Sometimes builders who will not budge on price will throw in upgrades in finish materials, or they might agree to pay for landscaping and upkeep for a set period. If the local market is very slow they might offer other incentives such as paying the property taxes for a year.

If you belong to a credit union, or if you have a good relationship with a local bank, start discussing financing choices with them. In general, don't accept a builder's choice of lender.

Warm wishes and the best of luck in this exciting venture.

For #2, there are a lot of agents in this forum and I don't want to sound disrespectful but suffice it to say if you're going through a builder/construction company that has a model home or sales office or something like that or they are going through a realtor, that's really all you need. Having an agent can be nice as they will hold your hand through the process and point out all the wonderful things about the home, area and school district to you and absolutely nothing negative. Don't get me wrong, they provide a valuable service to some but it's not a free service. They aint your friend, they want to earn as much commission as possible.

As for #5, generally you don't get the best deal buying new construction that isn't there yet. You get the best deal buying what is already in inventory and especially that has been sitting on the market for a while, a subdivision closeout or a house that has already gone under contract a few times that hasn't panned out. When I look to buy a house, I look for a good deal. I don't know if you're the same way but if you are, try to negotiate directly with the builder if you can and eliminate the middle man. They usually work with mortgage companies that have the best rates around too and they often have programs such as no closing costs or other incentives.

As for #6, if the builder is building this house already and will build it whether you express an interest in it or not, then they are building it with their money and you don't need a construction loan. You simply sign a contract to buy the house then when it's ready it can be a conventional mortgage or other program. It's not like a custom home where you need a loan to buy the land and a separate loan for construction then a regular mortgage and all that.

In regards to number 2--I am an agent. (and thank you quirky for being respectful because to a certain extent I'm going to agree with you on this one. When it comes to a spec home an agent may not help the process a lot. I will respectfully disagree that we all want to earn as much as possible. Believe it or not, there are some of us out here that truly believe in our fiduciary responsibilities.)

An agent can be a great hand holder with new construction and offer valuable advice, but I would never expect them to do many of the things you described. Much of what an agent will or will not bring to the table will depend upon the builder and the particular situation. When we built our previous home (it was a custom home) I might have talked to our Realtor three times about the new house: once at the closing of the home he sold, a couple of weeks before the new home was finished, and at the closing of the new home.

I may be blasted for this, but if one of my clients was purchasing a spec home my job would mostly consist of making sure the contract was followed and acting as a consultant. The day to day of deadlines, following plans, frequent meetings with the builder would fall to my client. I would step in when there was a problem. I would be available for meetings with the builder when necessary and would be at the initial meetings to offer advice on the selection process, timelines, etc. I do know how long things should take here, general prices, and what additions would add the most value or the least. I don't pretend to be a structural engineer, an architect, an inspector, an interior designer, a code expert, or a construction expert. I know a little bit about each of those things, but also am wise enough to know what I don't know. I know what sells a house.

Is the builder represented by a realtor? If so, I would get my own, different, realtor. Often times, at least here, the people working for builders are NOT realtors, nor do they have a RE license thus they are truly working for the builder.

Here is one of my stories working with buyers and new construction.
IÂve been in the RE business over 16 years, before that I worked in civil engineering and construction inspection for 23 years.
A previous client referred an out of state buyer to me. This buyer had 6 school-aged kids. After showing several re-sale homes, they decided to buy new construction. New construction around here takes about 6 months to finish. The buyer lived out of state and would not relocate until school starts, which was also the projected completion date by the builder.
During the construction process I went to the construction site weekly and took pictures of the construction and e-mailed them to the buyer.
I also took notes of perceived defects and gave them to the buyer to address with the builder during one of their visits.
As the time got closer to the finish/closing date, I realized that the builder was several weeks behind schedule. My buyer was ready to come into town and stay in a hotel for a few days and move in.
The builder wanted to push the closing back 6 weeks. My buyer and his 6-kid family needed to move into the home, because school was starting the week of the original closing date. The builder was not willing to accommodate my buyer and pay additional days for the hotel.
Since I was taking weekly pictures of the construction process and looking at the charts for adjoining construction progress and contract dates, I realized that other adjoining homes contracted AFTER my client, were further along in the construction process. I contacted the builder with that information and suggested he pay for the family of 8 until they could move into their new home. The builder agreed to pay for any extra hotel stays when he saw my data and pictures.
When checking on the builder at 10pm at times, I noticed they were working 24/7 to get the house finished on time.
My buyer moved into the home on the original scheduled closing day.
Without my help, I donÂt think the buyer could have moved in on time.

I agree and disagree with everyone. I agree tht not all agents are after the commission. I disagree that agent, like myself, can't be your friend. I have made friends with many past clients. I did just have my home built. It is very stressful. The builder generally adds the buyer's agent commission into the price but will not lower the price if you do not have an agent. Like kaleberg said, they will throw in upgrades, appliances, and what not. Our builder did have their own real estate agents. They went over the contract casually neglecting the part where it said we would close even if the final walk through list was not finished. I caught it though. I made a point to change it. That being said, we did the final walk through and stuff was in the process of being fixed. The next day we were hurriedly rushed through. Everything appeared to have been addressed. But it really wasn't. We moved in and they had quickly and sloppily done things just to get them done. Granted they are minor cosmetic things. But some have still not been completed and we've been in here 4 months. However, they have done some extras for us because of it.
I do disagree a little. I would be on the builder's for my clients. My goal is to make my clients happy. I can do that by trying to keep them moving so that deadlines do get met.
You would only need a bridge loan if your current home doesn't sell. There are many other types of programs out there. Be cautious of the "exotic" loans, like interest only. Make sure you understand all the loan terms clearly. I always stick to good ole faithful....the 30 yr fixed. I know since my husband is military, we will never spent 30 years in a house but I like the predictability of the payments.

dingo:
1. I think you can use the same realtor for selling your home and to buy the new one. Since you're using them for both, you may be able to negotiate a fee discount for the selling of your home.

2. We used an agent for our new home construction. While she didn't do much in terms of helping with the building process, she did all the paperwork and kept us apprised of how everything was going. All our paperwork was done on time and she attended the closing with us. I highly recco you use a realtor so someone is on your side in case anything goes wrong with the builder. Do not use their realtor. Usually the person in the model home is a licensed realtor, but they are working for the builder, not you.
3. You don't have to worry. The seller/builder pays the commission to your realtor on the deal. At any rate, it's a standard commission.

4. I don't know how common it is for a realtor to give a discount if they sell your home and help you buy another. It certainly doesn't hurt to ask!

5. Yes, the price of new builds are negotiable, especially in today's market. When we built, we tried to negotiate, but the houses in the neighbourhood were selling like hotcakes, so there was no negotiations. we had to take the price from the builder. However, today, they are throwing lots of upgrades. Don't pay full price and ask for free upgrades and discounts.

6. You don't have to worry about bridge loans since you're going through a spec builder (which I assume is a production builder) if your current home sells before your new home is finished.

I have of lot of experience with this (I am not an attorney, builder or agent) - my recommendations on purchasing a spec home would be these:
1. Talk to neighbors or others who have moved in to get their first hand experiences with this builder.
2. You can negotiate, but be careful as the builder may be looking to shortchange in other areas to make it up (unless the house is truly overpriced for the market which is possible). Negoating for options to be included in the house vs a straight price reduction might work better.
3. Will you have selections to choose from? If you will, make sure the builder gives you those lists of choices up front so you know what you are getting before you sign the contract.
4. Get a copy of the floorplan and/or blueprint. You will need it for planning. Don't sign a contract without it.
5. Do not give a deposit check made out directly to a builder unless they will personally guarantee your deposit money (this is as compared to them putting it into an attorney escrow account which is fine). If you make it out directly to their company, and something goes wrong you might be out of luck on your deposit(depending on the laws in your state).
6. I can't speak to the agent except to say that ours was of no help at all, despite having built 2 homes himself. When there were problems with the build, he left us high and dry and did virtually nothing to assist us. Commission on this house was 4 percent.
7. If the builder tends to run late in completing the homes, watch out with your lock in - consider locking in later. If you can, negotiate with the mortgage broker at least one free time extension for 3 months if the builder runs late.
8. Specify as much as you can in the contract (or you may not get it). I was just in a 1.3 million dollar home that had flat vs 6 panel doors throughout the house because the homeowner did not specify it in the contract (yes this was a spec home and the other homes in the development did have them).

Hope this helps - good luck!

OK! Y'all need to send me your cards!
If I found agents to do all the stuff that you say you do I wouldn't be so pro-FSBO.

Dingo, I don't want to flog a dead horse, but I'm afraid that you might be mislead by some of these replies. Berniek's backround in structural engineering is almost unheard of among realtors. Virtually no realtor I have encountered in 30 years of buying and selling property has had a minimal knowledge of structural engineering or architecture. One understood a fair bit about construction practices, bless her. Realtors have no legal standing to pursue your builder if he makes mistakes or cuts corners. The management of new construction is not their job, and it's not their legal responsibility.

You need a good real estate attorney to vet any contract you might make with a builder. Do not skip this step. If you want to make sure you have some control over the design and construction of your house hire a structural engineer to review the process. You can also contract with a well respected builder to evaluate the construction, if your builder is willing.

I have worked with talented realtors who were worth every penny they charged, but their expertise was matching a buyer to a seller and making a good deal for both parties. I also have worked with two wonderful builders and a good architect. None of these people let me down, but that's because the realtors sold the houses; the builders built the houses; and the architect designed the houses. And these jobs were all different.

dingo69, it would help us to know your location, to be able to give you more specific answers.

And, Berniek, could I ask where you live and work? You sound very helpful. We are looking to move and have been searching for new construction on line in SC and possibly northern Al. Sorry ...didn't mean to hijack.

mar_cia, I e-mailed info to you.

I thought I had replied to Berniek, but apparently not...apologies.

We live in Charlotte, NC (actually a suburb of Charlotte).

For new construction, is the commission to the agent the standard 3% or is it a lower amount?

I'll go ahead and say what I'm thinking. If the agent does very little for new construction, which it sounds like most do, why wouldn't I find a 'friendly' agent who will split the commission with me?

I believe the price of this new home will be firm; sales are brisk in this area and the builder has gotten asking price on most of his construction in the area. So if the agent won't ride herd on the builder, the price is firm and I need to be involved why let that money go?

I'm sure that will offend some, but we're talking about considerable money that we could use toward upgrades or a larger downpayment.

"For new construction, is the commission to the agent the standard 3% or is it a lower amount?"
Commissions by builders vary where I am, from 3% to 7% (7% Pulte Homes). I would consider rebating some of my commission to you; however, several other states donÂt allow paying/rebating a commission to a non-licensee. In addition to that, some RE companies require a minimum commission from their agents, or it will come out of their pocket.
All I can suggest is, ask the agent.