This tip of the day is worth screaming out. The Builder will remain “nameless” – the lender that was tied to the “builder” will also remain nameless, as will the representative that was in the new home center.
We talk a lot about how to get the “best deal” on new housing. We have had representation ourselves
before we became licensed at new housing tracts, and besides what you might have heard, it is not an “easy” paycheck for a Realtor – Especially if things go awry.
We were doing our due diligence with a very close friend and his wife from my past life (LAPD). They had found some new homes on-line and wanted to go and check them out – the newly constructed homes were in the Santa Clarita Valley and priced from the mid $500,000.00 range. We set the appointment with them and met them at the Model Homes and Sales Office. Looking over the paperwork, we discovered a few items that might have been agreed too if we hadn’t been representing them.
- 1. their deposit was “non refundable” for any reason, as soon as the deposit check cleared.
- 2. the lender was charging 4 points to originate the loan (typical is 1 point up front – not 4). $550,000 X 3% = $16,500.00 Extra 🙁
- 3. the upgrades they were offering as incentives were costing $20,000.00 more than getting the same bid at any Construction Company.
We negotiated on our clients behalf – Because the builder would not potentially have had our clients buy, if it weren’t for our clients bringing us along as their representatives. When you bring your very own Realtor to a New Housing and New Construction tract and or sales office, you are fully armed and are expertly represented. As my dad would have said, “You are now loaded for bear…”
A “Disney ending…?” – Absolutely, during our negotiation with the builder’s representative at this new Home Tract in Santa Clarita, we were able to get the fees down to brass tacks and find out there was a home that was falling out of escrow – which met their needs even more than the one they had their sights on.
We were able to negotiate their commission as 100% refundable up to a 17 day inspection period. We were able to get the lender’s fee reduced to a more reasonable amount. We were able to get upgrades and ad-ons with Granite and Stainless at no extra charge. A $5,000.00 credit was also able to be obtained toward backyard landscaping.
This would not have been the case if we would not have been with our clients. Not all new home sales representation goes this well. Not all New Home builders and New Construction have this much ability to change their normal operating procedures. But, you won’t know unless you have a “qualified” new housing experienced Realtor at your side.
We have very close friends that have called us and those in our profession “sharks”. You might have heard this term when people refer to “sales people”. When I was a PD regular, and when I went to court – I always felt more relaxed during Cross Examination when I had a District or City attorney that was very seasoned and experienced in court procedures. I wanted a Shark on my side when I was put on the stand with a Defense Attorney attempting to make mince meat out of my character. When the City or District attorney would yell “objection” and the judge would “sustain” it – I always felt as if I was in a very safe place.
When it comes to new housing and new construction – You want someone on your side before you sign anything – someone to represent you and give you that “feeling of ease”. Call your Realtor before stepping one foot into a new home center or model home!
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