Important Tip on Buying New Built Homes

January 16, 2009 at 11:32 pm 1 comment

We had an office meeting yesterday to plan our monthly meetings for the new year. Interesting ideas and experiences of Realtors on their transactions were shared. One transaction that I thought was worth sharing was an experience shared by Realtor A.

Realtor A cautioned against builders who promote deep discounts on the purchase price of a new construction home and later inflating buyers’ closing costs. This was apparent when Realtor A represented the buyer on a new- built property. The price of the home was a steal, but the buyers were to pay their own closing costs. Halfway through the transaction, the Realtor reviewed the HUD statement showing the itemized closing costs and found out that the builder overcharged the buyers on title fees by as much as $500.00. Realtor A called the builder and the $500 was deducted.

The lesson of the story: It’s great to have buyer representation on new construction homes or resales. Builders have hired their own Realtors and employed them to represent the builders in selling new homes. Those Realtors have the builders best interest in mind, not yours as a buyer. It is prudent to seek the services of your own Realtor to represent you and walk you through the negotiation, contract, your rights as a buyer and different aspects of the transaction.

As a buyer, you do not have to pay the Realtor to represent you — the seller pays for the buyer’s Realtor’s fees. Therefore, the service is FREE to you and you get the benefit of someone who will represent your best interests.

By the same token, I have represented a buyer on a new-built home. The previous buyers fell out of escrow, and the home was close to completion except for the kitchen counters. During inspection, the kitchen counters were not installed as the builder’s representative had promised and my client was not able to do a complete inspection of the property. I asked for a $100 gift card for the inconvenience that the builder put on my client and his disappointment with not doing a full inspection. The builder agreed to the $100 gift card along with a list of things for them to correct on the property including cosmetics, cleaning and more. We were able to negotiate a 3 percent closing cost and reduced purchase price. My client came out with no out of pocket expenses as a result.

Entry filed under: Arizona Real Estate, Chandler Real Estate, Phoenix Real Estate. Tags: , , .

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1 Comment Add your own

  • 1. johnfearnow@gmail.com  |  March 23, 2011 at 10:31 pm

    All new construction is built to Energy Star standards which include energy-efficient building techniques and features such as more effective insulation, high-performance windows, tight construction, more efficient heating and cooling equipment, and Energy Star rated lighting fixtures and appliances

    Reply

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