All home buyers are very aware that signing contracts is part of buying a home, either with a builder or home owner.  It is inevitable that the agent working with a buyer will know the level of their excitement.  The buyer will literally say it, or their actions will show.  

As an agent working with a buyer in a "fiduciary" relationship, the buyer's trust is at stake.  Protection of that buyer should come first.  No matter how nice a builder's sales representative, or a seller's agent representing a home owner may seem, our job as buyer representatives is to educate the buyer BEFORE they give their earnest money deposit, and enter into an Offer to Purchase agreement. 

With that said, taking advantage of any buyer, especially an inexperienced first time buyer is inappropriate.  Writing unnecessary additional jargon on Offer to Purchase agreements just to demonstrate you are a professional, only complicates matters.  Incorrect calculations of closing costs, down payments, and balances due at closing that's reflected on the contract, is totally unacceptable.  And to have a buyer sign an agreement without true clarity of what they are signing is just plain bold!

Warning signAs a buyer's agent, one should care about what their clients are signing.  It is imperative you know buyers are clear, and understand every aspect of the contract BEFORE they sign, for yours and the buyer(s) protection. 

So if I do something as inconceivable as, oh let's say, actually read the contract with the buyer at your builder's sales office, please, No Hard FeelingsI Work For the Buyer!  I don't know about you, but I like sleeping comfortably at night.  With my license on the line at every transaction, I am compelled to know what the contract reads, and the loop holes therein.  And my buyer should be aware of these important aspects of any contract, just the same.  Isn't that part of a standard agreement produced by the state Bar Association and the Realtor board?  Why would a builder's contract be any different?

(To the agent on the opposite side of the transaction) Its not personal, its business!  After contract and addendums are signed, and buyer(s) are happy, we can then go back to smiles, laughs, and water from your refrigerator. 

I might even pull out a picture of my family and tell jokes...Its all good!

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Raine Spivey is a residential real estate licensed professional in the state of North Carolina and South Carolina, and loves representing buyers!  If you are ready to purchase, and serious about buying real property, contact Raine to get started.  (866) 997-2463 or RaineSpivey@Gmail.com

 
This post has been included in North Carolina Real Estate News Mecklenburg County, NC Real Estate News Charlotte, NC Real Estate News
Post is included in group: 1st Time Buyers
Post is included in group: Local Expert

28 Comments on No Hard Feelings, I Work For The Buyer!

20 Most Recent Comments Displayed Show All

APR
02
2010
761,333 Points 61 Featured Posts Outside Blog Attended Rain Camp Called Shot Master

Raine, excellent points and congrats on the feature!  It is so important that all of us continue to educate our buyers and sellers on agency relationships and what they mean.  Have a happy Easter.

8:19am • #9
1 Featured Post

Thanks for all your responses.  I appreciate the feedback and how agency is done in your part of the U.S.

@Agent Aaron, Thanks for the new nickname. Love it!!!

8:32am • #10
3 Featured Posts

Very smart.  I think it's also really important for agents to know these contracts inside and out because once they do, they will be more comfortable. 

8:32am • #11
290,821 Points 15 Featured Posts

As my old Dad used to say, you dance with the one that brung ya.

8:54am • #12
109,882 Points 8 Featured Posts Called Shot Master

Being knowledgeable of the contract language is imperative.  I am surprised by agents who just fill in the blanks and do not know what the parts without blanks actually says. 

Here in Georgia many builders use their own contracts and as an agent representing the buyer, I always try to get a copy of the contract the day before my client actually signs it.  SO I CAN READ IT and make notes regarding areas of interest or concern.

 

9:02am • #13
729,231 Points 15 Featured Posts Outside Blog Called Shot Master

Raine, this is a very important aspect of buyer representation. Buyers need to know exactly what they are signing. Thanks for the reminder.

10:34am • #14
569,044 Points 1 Featured Post Localism Sponsor Outside Blog

Hi Raine,  Great reminder that we represent one side of the transaction or the other and should make sure our representation is complete and professional.

10:36am • #15
316,659 Points 16 Featured Posts Localism Sponsor

Raine, as business professionals, we can't let our "feelings" and emotions get in the way of good business decisions.  Thanks for this great blog post, you are a true pro!

Regina Brown

12:38pm • #17
Outside Blog

When the agent of the seller or builder gives the buyer's agent a hard time, it's got to make you wonder if there is more to it than meets the eye. Excellent representation of your client, for being their bulldog!

2:05pm • #18
801,287 Points 20 Featured Posts Outside Blog Attended Rain Camp Called Shot Master

Excellent advice. I just mentioned in one of my other blogs for buyers to bring their own representation with them when they go to a model home. They do not understand the builder's rep represents the builder.

3:33pm • #19
196,111 Points 34 Featured Posts Outside Blog Attended Rain Camp Called Shot Master

Right on. I can't tell you how many times a buyer has told me to just tell them what it says so they can sign it. I always encourage them to read everything thoroughly but some people just don't work that way. In those cases you better have your client's best interests at heart when you put the offer together. Karma can go either way.

4:57pm • #20
220,580 Points 2 Featured Posts Localism Sponsor Outside Blog Called Shot Master

Raine (great name and spelling, btw) good for you. While I had occasions where it might be frustrating to feel as though the buyers agent bringing THEIR BUYER to a new home site was a tad intrusive with the builder contracts (that oversight was sadly rare), it was a respected bit of participation- and your buyers surely had that same appreciation.

If you get resistance with on site people, it's largely due to the fact that once the contract is signed, the buyers (as they should) visit "their" house frequently, are accommodated by the on site person (not their Realtor) for months on end...and the on site person *sometimes* doesn't get so much as a thank you from a participating Realtor when it's all said and done. Can you tell I sold on site in a past life? :)

6:36pm • #21
1,123,660 Points 90 Featured Posts Outside Blog Attended Rain Camp Called Shot Master

The builder's contracts we see here are so one-sided! I frequently cross things out and negotiate points on the contract rather than allow a buyer to just sign. They mandate who does title and where settlement will be, and sometimes that is an hour from the house. It's probuilder so it is good to have your own rep.

7:06pm • #22
123,510 Points 1 Featured Post

I concur with Erica.  After working for a new home builder  for a while, I know that the builders contracts are constructed in their favor. 

Builders will use the incentives and "in-house" lenders to make the  buyers think that they are getting a great deal.  When in actuality, it's the same money, but they they just allocate it in ways that make it look appealing. 

Any agent worth their salt will not only go to the new home communities with their clients, but assist them with understanding the incentives, the closing cost and of course that one-sided contract.

11:16pm • #23
123,510 Points 1 Featured Post

I concur with Erica.  After working for a new home builder  for a while, I know that the builders contracts are constructed in their favor. 

Builders will use the incentives and "in-house" lenders to make the  buyers think that they are getting a great deal.  When in actuality, it's the same money, but they they just allocate it in ways that make it look appealing. 

Any agent worth their salt will not only go to the new home communities with their clients, but assist them with understanding the incentives, the closing cost and of course that one-sided contract.

11:16pm • #24
1,348,414 Points 41 Featured Posts Outside Blog Attended Rain Camp Called Shot Master

Neither the seller, the seller's agent nor the builder's rep should have hurt feelings just because you're representing your client.  They should be doing the same.

11:21pm • #25
APR
03
2010
8 Featured Posts

Raine..........great post!  I had a couple call me that would close on their contract and ask if I could help.  I had never met them, but they were smart enough not to sign the 12%/30yr mtg.  The first thing I asked the sales person was "Would you advise your own kids to sign the...........better yet...........would you sign it"?  Needless to say, one of the lenders I sent them to got them 6%/30year. 

8:01am • #26
836,533 Points 69 Featured Posts Outside Blog Called Shot Master

Right as Raine.......excellent post and good subject to bring up now and then. Thank you

9:54am • #27
APR
04
2010
1 Featured Post

@Pat - Love the bulldog comment. I actually have a past client that refers to me as a 'pitbull in a skirt'...love it!

@Laurie - I feel there should be some level of expectation from both agents, and  it should be communicated at the time of contract. It never dawned on me that the builder's rep expected a Thank you from the Realtor, when most times the Realtor is left out the loop, and purposely it seems.  I will keep that in mind.

Thank you all again for your feedback.

8:05pm • #28

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Raine Spivey, REALTOR

Charlotte, NC

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Address: 15720 John J. Delaney Drive, Charlotte, NC, 28277

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