New Construction Buyer Beware....Recently a young couple called me to represent them in the purchase of a new home. They are primarily interested in new construction and had visited several communities to ‘window shop' before calling me.
Mistake. Let me tell you how window shopping could have made the purchase of their home more expensive.
Two of communities had them ‘sign in' and asked if they had a buyer's agent. No.
What this meant is the seller (builder and seller's agent) feel they are procuring cause for the sale of the house. The buyers talked to the builder and to the agent about details of the house. Once they were sold on the house, they were ready to get someone to protect their interest. Here is the rub...the seller's agent (although this was not explained to the buyers) wants to represent only the seller with no representation for the buyer and to not pay a buyer's agent fee. My buyer's choices are to proceed with this house and pay the buyer's agent fee, to proceed with this house and have the buyer's agent negotiate the fee, work the agent's fee into the offer with a lower offer to the builder or find another house.
They have decided to do the later since they as they said " we do not want to work with that agent for another six months of our life while the house is being built".
Bottomline for the buyer? Even when window shopping do not sign anything you do not understand. Do not sign away your right to be represented.
Personally, I was very disappointed because this was a small local builder and real estate company working with a very young couple buying their first home. I was certain we would be able to work this out, since it was just a misunderstanding on the couple's part.
This is the impression it left with the young man:
I'll be honest with you; I had some reservations about contacting an agent. Those reservations were validated by xxxxx little blow-up. But after seeing you handle the situation and hearing how happy Julie is, it's safe to say I'm more than impressed and really look forward to working with you.
Bottomline for builder and seller's agent? They most likely lost a sale and you can bet these folks are going to be doing advertising for them. Not the kind you like to get
