How to lose $40,000 on Orlando New Construction

Reblogger Anna Banana Kruchten, CRS
Real Estate Broker/Owner with Phoenix Property Shoppe AZ Broker BR030809000
http://actvra.in/52pC

 This is an Absolute MUST READ for all Home Buyers considering the purchase of a new build home anywhere in the country.

 

All you need to do is insert YOUR TOWN into this article's title and it will ring true as well. Home buyers should always ALWAYS have their own agent representing them when purchasing a new build home. And - make sure your agent is with you on your first visit and/or is able to register you with the builder before you visit the first time. If you don't and you like the home and community and want to purchase there,  YOUR AGENT may NOT be able to represent you.  This is not a joke. I repeat this is not a joke. You could seriously leave a lot of money on the table and I'm quite certain this isn't in your plan, now is it? Of course not!

Original content by Mike & Eve Alexander

It is easy to lose money on Orlando New Construction. 

Here are some grand ideas:

  • Go alone. What do you need an agent for?
  • Rely on yourself.  You don't need an expert opinion.
  • Trust the builders sales person, they smile so nicely.
  • Don't hire your own Buyer agent. You are smart enough.

It's just that easy to lose money on Orlando New Construction when you don't have your own agent.

Think I am kidding?  Just watch this video about how a local Orlando Homebuyer lost $40,000 when he bought a Orlando new construction home without an agent. Learn from his costly mistake.

  

This aired yesterday, so play the video and read the full details.  This buyer purchased a new construction home through a national builder.  He lost $40,000 because he did not understand the contract that he signed.

 

How does that happpen?

Easy. Many homebuyers become blinded by the beauty of the brand new homes luxury upgrades found in the model homes.  Even the onsite builders person is so personable and nice!  The buyers get excited and become too friendly with the builders sales person. They forget that there are business details behind this highly emotional purchase.  

This is why you need your own buyers agent.  A good buyers agent will keep you grounded and aware of all the nuances.  After all, nothing is as perfect as it seems...there is also the small print in the contract that is written only to protect the builder, not you the home buyer.

 

The builders sales person is not your ally

The sales person at the new construction works for the builder, not you the buyer.  They will smile and answer your questions about the process.  However they will not mention any negatives about the home, location or community.  They will not tell you about the caveats in the contract, the timelines to stay compliant or the fact that there is no appraisal contingency.  You are for sure on your own.

 

Think that you can decipher the builders 30 page contract?  I bet not. Most homebuyers do not understand even a fraction of what they will be required to sign. Yes, that is one of the big reasons that you need to bring a good buyers agent with you.

 

A good buyers agent is priceless...

good buyers agent will read the contract! Before my buyer goes to contract on Orlando New Construction, I request a copy of the builders contract to review.  We highlight any "buyer beware" issues and make sure the buyer understands the terms.  Believe it or not, most sales people that work for the builder do not understand their own contract. Not to mention, they are not allowed to even try to explain it.

 

Not long ago I requested such a contact from the builders rep.  He was not thrilled, so he sent me 92 pages of contracts and addendums the night before, most of which were not relevant to that community. Yes, I read and understood all.

The next morning, I disputed what the builders salesperson stated which was different  from what the contract really said. I received an addtional $16,000 in builder concessions for my buyer client. I also requested a reimbursement for the buyers hotel stay which was advertised on their website. That was several hundred dollars back to the buyers pocket. Builder Concessions are not unusual if you know what to ask for.

 

More services a good Buyer Agents will do:

1.  Watch your timelines so that you do not jeapordize breeching the contract and losing your deposit...just like in the video.

2. Give you the negatives (and positives) both about the property and terms of the contract.

3. Attend meetings and inspections on your behalf.  Most of our buyers are from out of town and cannot attend, so we go to make sure that everything goes smoothly and there are no surprises. 

4. Issues do come up in the transaction, that the buyers do not know how to deal with or are not comfortable in confronting the problem. Every home buyer needs an savvy agent that is willing to actively mitigate any conflict. We are experienced.

5. Save you money.  There are times when the builders are negotiable and a good buyers agent can seize those opportunities by knowing what to negotiate. Some home buyers mistakenly think that if they come in without an agent, the price will be reduced.  Not a chance! More than likely, the buyer will spend more than they need to.

6. In addition, a buyers agent will help with financing, title, insurance, and where to place your deposit.  Will you put it in an escrow account or will you put it in the builders pocket for their use? Ask us what is best.

7.  Last but not least, all builders will pay the buyers agent if you include them.  Builders will  not discount your price one penny if you come alone. They simply don't.

Smart home buyers always hire their own agent. What the media says about buyers agents. Talk with an Expert Buyers Agent at Buyers Broker of Florida.  Do not be one of those buyers that call our office for help after they signed a contract and are now stuck.  Our consultation is free. 407-539-1053

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Representing ONLY the best interest of the Home Buyer...never the seller.

 Eve Alexander Orlando Buyers Agent

 

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Re-Blogged By Re-Blogged At
Topic:
Home Buying
Location:
Arizona Maricopa County Phoenix
Tags:
buying new build home phoenix

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Rainmaker
238,627
Kim Gaston
FRONT PORCH TEAM REAL ESTATE & PROPERTY STYLING - Brokerage, Colorado Real Estate Advisers LLC - Colorado Springs, CO
Colorado Springs REALTOR®, CNE (719)661-6987

Great re-blog Anna Banana Kruchten with valuable words of wisdom from Eve. 

Mar 20, 2017 03:19 PM #1
Rainmaker
1,145,687
Beth Atalay
Cam Realty and Property Management - Clermont, FL
Cam Realty of Clermont FL

Hi Anna, despite of what some home buyers think when it comes to new construction, having their own agent is a must.

Mar 20, 2017 03:39 PM #2
Ambassador
2,942,646
Jeff Dowler
Solutions Real Estate - Carlsbad, CA
The Southern California Relocation Dude - Carlsbad

Hi Anna

This looks like a great read and well worth sharing. I think most buyers have no clue about the potential issues with dealing directly and on their own with a builder - the reps make it all sound so easy!

Off to read!

Jeff

Mar 20, 2017 04:17 PM #3
Rainmaker
352,386
JoAnn Moore
The Mortgage Market of Delaware - Georgetown, DE
Home Loans in Delaware

Anna, 

This is very, very important information. We as a mortgage broker come across some of these same things. We try to help as much as we can but if the buyer has already signed the contract it's too late most of the time. Thank you for reblogging to let others know about this.     

Mar 20, 2017 06:16 PM #4
Rainmaker
1,149,070
Sandy Padula and Norm Padula, JD, GRI NMLS#1483386
Allison James Estates & Homes & Realty One - Carlsbad, CA
Presence,Persistence & Perseverance

Excellent re-blog choice and I will visit Mike & Eve's post with a comment. Thanks, Anna B!

Mar 21, 2017 05:40 AM #5
Rainmaker
2,329,590
Sheila Anderson
Referral Group Incorporated - East Brunswick, NJ
The Real Estate Whisperer Who Listens 732-715-1133

Good morning Anna. This is an excellent re-blog and so very very important. I have a friend who believes she & her husband know better. Oh well.

Mar 21, 2017 06:58 AM #6
Rainmaker
1,988,766
Robert Bob Gilbert
Berkshire Hathaway HomeServices Anderson Properties - Katy, TX
Your Katy TX ( West of Houston) Real Estate Expert

Anna, Thanks for this re-blog. No buyer should ever buy without a Realtor but they think they can do it themselves. 

Mar 21, 2017 02:50 PM #7
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