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Franklin TN New Construction Home Buyers Need Their Own Agent

By
Real Estate Broker/Owner with Franklin Homes Realty LLC

Franklin TN New Construction Home Buyers Need Their Own AgentYesterday, I was contacted by a buyer who was looking to purchase a Franklin TN new construction home. She had scheduled an appointment with a builder to reserve a lot in an upcoming neighborhood and realized she needed the assistance of a buyer's agent.

Buyers were originally told the first homes would be completed by December 2014. After several delays, the builder is saying March 2015 will be the earliest occupancy.

My client is a cash buyer and was prepared to lay down a sizable deposit to hold the lot of her choice. When we arrived at her scheduled time, we could see that other unscheduled buyers had stopped by for this event. All interested in just a few lots to be developed in phase one.

After listening to the builder talk about their upcoming plans, we had an opportunity to meet privately with one of the builder representatives. We were surprised to learn that they weren't going to accept deposits on lots. There is so much pent up demand for these homes, they've decided to auction the lots off to the highest bidder. As if that weren't bad enough, they haven't even priced the homes yet.

You heard that right. They haven't determined what the base price of these homes will be or what features will be included in their base prices. They say the homes will start in the mid-$300,000's and go into the $400,000's but nothing definite has been determined.

As you can imagine, I was extremely turned off by this builder's approach. Fortunately, so was my client. There is no way I would advise a buyer to put down a deposit under these circumstances. She has decided to pursue another option.

Franklin TN New Construction Home Buyers Need Their Own AgentThe sad part is there were lots of buyers there who didn't appear to be troubled by this at all. Did I mention there wasn't one other buyer who had an agent present? Sadly, these people will be taken to the cleaners by this builder. It costs buyers absolutely nothing to have the assistance of a buyer's agent and yet I see buyers do it time after time.

As a buyer, do you really want to pay more than you should for a house? You will if you don't have the assistance of a buyer's agent to act upon your behalf. I would never advise a buyer to get into a bidding war on a lot. This builder has gotten greedy. They are taking advantage of the low inventory and preying on these buyers who will overpay because they don't recognize there are other options. More reasonable options.

My advise to you before you sign on the dotted line with any builder for Franklin TN new construction homes is to seek the assistance of a knowledgeable buyer's agent. TW Realty Group would be happy to assist you with that. Just call Tammie White today at (615) 495-0752.

Posted by
Tammie White, Managing Broker/Owner
CLHMS, CRS, GRI, SFR
Franklin Homes Realty LLC
Franklin, TN
(615) 495-0752 
GET REAL. GET LOCAL.
 
This posting with the content written here and photographs displayed are the intellectual property and opinions of Tammie White of Franklin Homes Realty LLC. Any party who uses this material without the written permission of Tammie White is subject to copyright infringement and possible lawsuit.

Comments (9)

Virginia Hepp - Mesquite NV REALTOR
Desert Gold Realty - Mesquite NV Homes For Sale - Mesquite, NV
Mesquite NV Homes and Neighborhoods - Search MLS

Hi Tammie - I represent a lot of buyers for new homes here.  It amazes me that buyers go without an agent.  I have heard of some pretty weird stuff, and thought to myself, "That would not have happened if I had represented them!"  Sometimes folks will tell me what they paid for their home, I can tell that they did not have an agent.  Or they did not have a good one!

Aug 24, 2014 04:49 PM
Barbara Todaro
RE/MAX Executive Realty - Happily Retired - Franklin, MA
Previously Affiliated with The Todaro Team

Good morning, Tammie.... those who jump at that scenario are riding for fall in the future... and that's one very greedy builder who will be one of the first to fall when the market turns.... he's trying to make up for what he previously lost!! those foolish buyers who attended without a buyer's agent by their side....

Aug 24, 2014 07:13 PM
Chris Griffith
Downing-Frye Realty, Bonita Springs, FL - Bonita Springs, FL
Bonita Springs Listing Specialist - Agent

We have a lot of new construction here. I take consumers to both new and resale so they can balance their options themselves.  I've been able to find them a resale property in some instances tens of thousands less for the same floor plan as new product.  Consumers owe it to themselve to weigh all of their options before investing!

Aug 24, 2014 07:55 PM
Gabe Sanders
Real Estate of Florida specializing in Martin County Residential Homes, Condos and Land Sales - Stuart, FL
Stuart Florida Real Estate

It appears that greed is a big motivating factor with this particular builder.  Great advice about moving on.

Aug 24, 2014 09:18 PM
Will Nesbitt
Nesbitt Realty at Condo Alexandria - Alexandria, VA
Nesbitt Realty is a family-run brokerage.

Very distinct article, Tammie White, in Franklin, TN. This seems to be a similar topic to this. Keep up the great blogging in AR!

Aug 25, 2014 04:47 AM
Suzanne Otto
Six Twenty Designs - Lansdale, PA
Your Montgomery County PA home stager

Wow. I can't imagine those other buyers would agree to such terms. Your buyer is lucky they had you buy their side.

Aug 25, 2014 06:55 AM
Nick T Pappas
Assoc. Broker ABR, CRS, SFR, e-Pro, @Homes Realty Group, Broker/Providence Property Mgmnt, LLC Huntsville AL - Huntsville, AL
Madison & Huntsville Alabama Real Estate Resource

Tammie, unfortunately most buyers do not understand what happens when they deal directly with the builder and they are clueless about what kind of a deal they really got.  There are a couple of neighborhoods I'm familiar with where this very thing happened, the buyers (unrepresented) way over paid and those homes sit for a very long time when re-listed, simply because they were all over priced and that stigma remains even when prices are reduced.

Aug 25, 2014 08:26 AM
Shannon Milligan, Richmond VA Real Estate Agent/Associate Broker
RVA Home Team - Richmond, VA
RVA Home Team - Winning with Integrity.

Your buyer is lucky to have Tammie White as their Franklin TN Realtor to represent them in a new construction transaction. I don't like the sound of that either.

Aug 25, 2014 10:29 PM
Katerina Gasset
The Gasset Group & Get It Done For Me Virtual Services - Provo, UT
Amplify Your Real Estate & Life Dreams!

I do agree that many builders can get really greedy and prey on clueless buyers, that's why it's really important to have a buyer's agent who will guide you.

Aug 27, 2014 07:47 PM