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Buyers:
Beware! Never buy a New Home from a Builder without Broker Representation
I
can assure you that purchasing a builder’s home does not usually
turn out to be a walk in the park for most buyers.
Although there are cases where things do go smoothly, my
experience has been that when a knowledgeable Buyer's
Broker is not involved, there is a high probably that a buyer
will close at least somewhat dissatisfied.
The primary reasons
for this are:
• the buyer’s expectation levels are set
incorrectly,
• builders, like resale sellers, are more
interested in maximizing their profit than protecting the
buyer’s interest,
• buyer and seller negotiate directly —
and the buyer is nearly always at a disadvantage (these
people are pros),
• the buyer is unaware of how the new
home buying process really works,
• the buyer is unaware of the common
pitfalls and traps that are routine in the builder business,
• the buyer does not have the background
in real estate contract law to always interpret contracts
correctly.
When added together, all of the above
issues can weigh in heavily against a buyer experiencing a
hassle-free process.
Since nearly all
home builders build in a
“co-op” real estate marketing fee into their property prices,
there’s no need to risk a nightmare experience—or worse, buying
a lemon. Bottom line: get a Buyer’s Broker, save $$ and rest
easy. It's Free.
Benefits of Using a Buyer
Broker
• There are no
additional costs involved for you to have an
Exclusive Buyer Representation represent you when working with a builder. Since the builder
cannot give you any cash back (because you are not licensed as a
real estate agent) the marketing fees that the builder puts into
his budget for buyer brokers will be lost if you do not take
advantage of it. Almost every builder builds this fee
into his marketing budget to pay for real estate agents to help
protect the buyer's interest when dealing with the builder. Why
go it alone when you can have an advocate watching out for you?
• Knowledge
and history of various home developments help match the buyer with
the right community.
• Knowledge of
builders' latest pricing strategies helps buyers determine the best
negotiating strategy.
• Knowledge of
other builders of equal and greater quality help buyers get the
best builder property for the money.
• Knowledge of
builders' reputations regarding quality, follow- up, warranty,
and financial stability, help prevent problems after the sale is
closed.
• In many
cases, lower prices or other concessions are offered to buyers
with buyer agents, as builders consider these agents as
"multiple sources of buyers." Individual buyers buy only one
home; buyer agents bring in many buyers.
• Be sure,
however, to use only Exclusive Buyer Broker's who can help
buyers with both new construction and existing homes. So-called new home
specialists often do not have access to or knowledge of existing
homes and may have monetary relationships with new construction
and/or custome builders, which
can cost you thousands.
FLORIDA (WE WORK WITH THE BEST BUILDERS OF FLORIDA) --
Unhappy buyers of new homes testified to a House
subcommittee Wednesday about how they unknowingly signed sales
contracts that prevent them from suing a builder for faulty
construction.
Michael Jockhons says her new home must be torn down
and rebuilt. "We did not know that signing a construction
contract . . . meant that we forever gave up our
constitutional right to a trial by jury for any and all future
disputes with our builder," she said.
New home construction contracts often have a clause saying that
any disputes would be settled through binding arbitration.
Public Citizen, a consumer advocacy group, published a report
claiming its research shows that the costs of arbitration, which
are usually shared by both parties, are often so high that it's
not worth it for consumers to pursue a claim. Another problem
with arbitration is that it is not open to the public, making it
difficult for consumers to find out a builder's track record.
Note: Don’t risk this happening to you! Call me before even
looking. I have years of new home builder experience.
We Have
Worked For Many New Home Builders
Still think you can do better on your
own without some expert watching out for you? So did
these trusting people. You may want to
check out what they have to say at this Professional Reports and Inspectors
Conclusion
Buying a house or condominium is a major personal purchase as well as a long-term investment. Never buy without a professional representation call Florida New Homes now.
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