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Beware of the Builder Trap

By
Real Estate Agent with Keller Williams Realty 0575737

A man dies and arrives not at the Pearly Gates but down the road a bit. Satan is at a desk and says before entering Heaven he recommends the new visitor tour each place first (Heaven AND Hell) and make up his own mind. The visitor agrees. First, they look at heaven and it is serene with people with wings playing harps and floating on clouds. Kind of ho-hum. Then they go down the elevator to Hell and what an exciting place. Dancing girls, wild music, lots of great food, year round golf, marble floors, swimming pools, etc. They come back up the elevator to the desk and it is time to make a decision. The visitor decides Hell looks a whole lot more fun than Heaven so eternity in Hell is the place for him. Back down the elevator they go. The door opens, and now the view is full of fire, people crying in misery, and the gnashing of teeth. The visitor asks Satan what happened to all the wonderful things from before? Satan replies, "THAT WAS THE MODEL."

So too, naive buyers of new construction are "lured" into the pristine buildings called "models" in new home communities. Builders to show off their inventory often add $90,000 or more of upgraded amenities and professional decorating and furnishings to the model homes. I think the public is generally aware of this but not sometimes to the extent that they do it. Work with a REALTOR to get a real scoop of what is real and what is imaginary. Visit a spec home and see what the basics might include. Negotiate heavily to get as many upgrades as possible for a reasonable value.

Or else your elevator door might open on your final walk-thru or closing day and you will definitely have a strong case of buyers remorse. Beware of the smiling salesman. There may be a reason he's smiling. GOTCHA!

Eric Bouler
Gardner Realtors, Licensed in La. - New Orleans, LA
Listening to your Needs
New homes account for less than 1% of my sales so it makes a lot of sense.  
Nov 04, 2007 01:59 AM
Vincent McKamy
Samson Properties - Fredericksburg, VA
Realtor Fredericksburg Virginia

Great posting - It is so true when you bring buyers in they are amazed at all the upgrades.  Yet when you get them down to wirte the contact all this stuff starts to add up, so when you get to the end they have this huge sticker shock.  Which in turn makes them start dropping things off.  Well after the house is built they hate it becasue they didn't get a house that looks like the model. 

I try to prepare people for this before even going in the model.

Good luck and again good posting  

Nov 04, 2007 01:11 AM
Charlie Ragonesi
AllMountainRealty.com - Big Canoe, GA
Homes - Big Canoe, Jasper, North Georgia Pros
I have heard this joke beofre using sales  poele and the demo vs the real thing. I can ow update for realestate thanks
Nov 04, 2007 01:19 AM
Rosario Lewis
DDR Realty - Newburgh, NY
GRI, SRES - DDR Realty - Orange County, NY
it is definitely important we prepare our buyer clients for this reality. Thanks for the reminder.
Nov 04, 2007 02:01 AM
Gary Woltal
Keller Williams Realty - Flower Mound, TX
Assoc. Broker Realtor SFR Dallas Ft. Worth
The model isn't the real thing is something many buyers have a hard time believing I've found. Especially in areas of upgrades to carpet, enhanced crown molding, granite countertops that are NOT standard. Getting a list of the standard amenities I think helps them out as a basis point.
Nov 04, 2007 05:24 AM
David Swierczynski
Retired - Antioch, IL
RETIRED

Gary,

The trick is finding out when those models will be offered for sale....and then acting decisively with qualified buyers. This tactic landed me two sales with an average savings of 70K on each of these homes!

Good post!

Cheers,

David Swierczynski

Nov 06, 2007 02:42 PM