From Nevin Williams, a lender in southern California, comes this well-stated word of caution for buyers of new homes. Nevin, thanks for the education!
Get real! Why would I want to have an agent act as a middleman when I can deal with the builder? I can get the house for less because there will be no commission to pay. Why should I lose thousands of dollars just to have you walk in with me? If you are a home buyer how often have you thought this? If you're a Realtor how often have you heard this?
When the cat is away the mice will play. There are so many things that can work against a home buyer when they aren't properly represented. Check out the latest scandal by some home builders. No agent to review your paperwork and you aren't an attorney or well versed in deciphering a harmful clause in a real estate contract. Glad I'm not you.
People will pay legal fees to protect themselves in a small civil case but think they can "wing it" on their own when buying a structure costing hundreds of thousands of dollars. As I recall a lot of people were taken advantage of by builders. For example, everyone in the real estate community in Sacramento knew to steer clear of this company. These unlucky home buyers who went at it alone ended up with a huge mess on their hands. A mortgage on a home they couldn't occupy.
Don't think this is an isolated incident. Visit www.ripoffreport.com and type in your favorite builder and see what pulls up. Most complaints are made by buyers who were not represented by an agent. to further drive my point home, how many of you reading this post think oversight of mortgage lenders and investment people is a good idea? Who is going to oversee your new home purchase? The agent who is paid by the builder? Uh huh, you catch my drift.
You're not hiring a person who lets you look at the inside of houses or a shuttle driver. You're hiring a professional who's little subtle re directions during the transaction helps you avoid disasters. You think it was a great idea and we know it was more than that. It saved you from a lawsuit. These lawsuits aren't always contractual either. Many can fall into the form of discrimination. Some blatant most subtle. I didn't know is no excuse in a courtroom.
Even if your theory of a home being sold for more holds true, hiring a Realtor to represent you in a purchase of a new home is much cheaper than the potential mounting legal bills or paying for a home you can't even occupy. Agents know contracts, federal and local laws, have the inside scoop on bad and good builders and always stay abreast of breaking news that could affect the area you are buying in or the credibility of the builder. If the builder thinks they can pull a fast one on you to make more money, then there's a good chance they might.
*1902 Wright St 2nd floor Carlsbad CA 92008
2990 Jamacha Road #136 El Cajon CA 92019
Nevin Williams NMLS #69651
*Not a licensed office location