Yesterday, 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.
The 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.
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