Raleigh, NC Buyers: Buying New Construction? Call a REALTOR® FIRST!

Written by:
Darleen McCullen, REALTOR®, Broker
Keller Williams Realty
Phone: 919.454.8864
Email: darleen@darleenmc.com

Did You Know...

As a Buyer, often, without paying one dime out of pocket, you can have access to the knowledge, skills, and expertise of a REALTOR®? So...why leave the largest purchase of your life to "chance"?

Just One Catch...

Consider contacting a REALTOR® BEFORE you step foot into a property. Otherwise, what happened to someone I know could easily happen to any Buyer, no matter how savvy.

Allow me to share...

Recently, I received an interesting phone call from someone I've known for years who entered into a contract to purchase a home from a Builder. This person knows I'm a real estate agent - but didn't want to "bother" me to go with him around town to view homes.

Instead, he thought he would purchase the new construction home on his own because he'd "educated" himself on the Internet - and had purchased a few homes in his lifetime.

Long story short - This Buyer and the Builder started bumping heads on a few of the items in the contract - and when he didn't know what to do, guess who he calls. You guessed it! ME!

I try to never condemn anyone for their choices - because when they made a particular decision, there must have been a perfectly good reason, right?

So, I began asking clarifying questions about why he hadn't called me in the beginning. I was not surprised by the answers:

• "I've purchased a couple of homes before so I thought I could do it on my own."
• "A guy I work with told me that he didn't use a real estate agent when he purchased from the Builder - and he saved lots of money off the price. I thought I would try to save some money, too. In my job, I negotiate all day long, and this was just negotiation."
• "I keep reading that it is a Buyers Market and in the papers I see that Builders are practically giving houses away. So I figured that I wouldn't need a REALTOR® anyway. With the Builders price cuts and my negotiation skills, why waste your time?"

He went on to say that he now realizes that he should've contacted me before he got into this mess - but would I please help him now?

I really wish I could help - but I'm guessing it's too late.

Here's why...

You see, most Builders are willing to pay a real estate agent's commission only if one or both of the following things happen:

1. The REALTOR® visits the home with the Buyer initially, and
2. The Buyer writes the name of the REALTOR® on the sign-up questionnaire.

If not, then it's probably too late - unless, of course the Builder is feeling generous. (And in these challenging times when many national Builders are losing money in the housing crisis, I doubt that there will be much generosity.)

At this point, if the Buyer wishes to have a real estate agent represent him, he can pay my company's fee out-of-pocket , or be left to fumble through the transaction himself.

He asked if I could provide advice "on the side" without charging - but really, I couldn't, even if I wanted to. Since he's technically not my client, if he decided to sue me over something involving the transaction, my Errors & Omissions insurance wouldn't cover me. I'm only covered for working with true clients.

Here's How a REALTOR® Can Help You as a Home Buyer

Knowledge, Experience, and Training

Today, most Buyers will conduct quite a bit of research on purchasing a home. Even armed with all of this knowledge, a good REALTOR® will be armed with even more information about specific builders, contacts at the Planning Board to see if a road is being planned behind your new home, etc. (And if we don't know the answers right away, we know where to find the information.)

Most Buyers will purchase 3 to 5 houses in their lifetime. Full-time real estate agents handle hundreds and sometimes thousands of transactions in a lifetime.

Think of it this way...Let's say that you're an engineer and a real estate agent didn't have the same background. No matter how much the agent read about how to be an engineer, s/he would never be as good as you are.

Even if said agent took a few classes on the subject - if s/he don't have the degree and experience, it would be impossible to effectively do your job.

The same applies to real estate. It takes time, skills, and knowledge to be effective.

Good REALTORS® have training. And LOTS of it. For instance, in North Carolina, agents are required to take only 8 hours of Continuing Education (CE) per year. As I was pulling together information for my 2007 taxes, I noticed that including my minimum CE, I had amassed more than 80 hours of overall training last year.

WHY would I attend extra training? Well, as Steve Harvey, the comedian, says: "You can be ordinary or you can be extraordinary. The only difference between those two words is extra. If you do extra, you can be extraordinary. If you don't want an extraordinary life, just stop doing extra."

I'm an EXTRAORDINARY kind of REALTOR®. I stay on top of the market trends. If you would like to have my skills, knowledge, and expertise as you purchase your next home, please contact me. I would love to work with you!

Please understand that I have absolutely nothing against new home construction and Builders. I actually like them quite a bit! However, as a Buyer, wouldn't you agree that you deserve the representation of an agent who will look out for your best interests?

Want to learn more about how I can help you? See these blog posts:

• Your Builder Won't Finish the Work, Now What?
• First Time Buyers: Not Using A REALTOR®? You May Wish to Reconsider...
• Buying a New Home? Consider Its Future Resell Value NOW!
• Home Inspection for New Construction? Of Course!!
• Do You Follow Up with Clients After Closing? OR Drop Them Like a Hot Potato?
• Buyers: Should You Save Your Cash for Furniture OR Should You Purchase an Inspection?
• Do You Go Above and Beyond for Your Clients - OR Are You Just an Average REALTOR®?
• Saving for a Home? Start by Lowering Your Food Bill!

Darleen McCullen, REALTOR®, Broker
Keller Williams Realty
Phone: 919.454.8864
Email: darleen@darleenmc.com

Disclaimer: Opinions expressed by those who are part of the ActiveRain community, including those providing comments relating to this blog, are their opinions and their alone - and do NOT reflect the opinions of Darleen McCullen and Keller Williams Realty. Darleen McCullen and Keller Williams Realty are not responsible for the accuracy (or lack thereof) or content provided by others.