The year is 2007 any one who can fog a mirror can get a loan to purchase a home! Agents, Builders and Lenders are happy because they are all making money. The year 2008 comes and loans are failing, Builders filing bankruptcy, large and small real estate companies are closing their door, and agents by the thousands are putting their licenses on inactive status. This goes on until near the end of 2009 when a hope of the up turn in the market comes. More builders are building new homes and buyers are testing the buying waters again.
Will buyer agents also fail these buyers in 2010 or have buyer agents learned from the past?
We know most builders have not because they are still selling homes to new buyers using the old tactics. One-day builders and a type of restaurant owners had a meeting. Not in the same room but could have been in the same place. It was decided by the builders that they would only pay $2500.00 toward closing cost if the buyer used their lender. Most buyer agents said nothing to their clients they just had their mind on the top line of the second page of the HUD-1. Every agent worth his/her salt knows that most loans takes at least 3% of the loan amount to cost it. Example: Your buyer purchases a new home for the asking price of $300,000.00, your buyer gets a FHA insured loan and pays the required 3.5% down. The loan amount of this purchase is $289500.00. 3% of this loan is $8685.00. Even if the builder kindly pays a "whooping" $2500.00 your client is still left with $6185 in closing cost to pay. Let me see if I got this right, the buyer is paying full price, using the builder's lender and all the builder is paying is $2500.00? Buyer agents have a duty and responsibility to help their client see the full picture before they take them to new home subdivisions. If buyer agents tell buyers what Nancy Reagan told kids about Drugs in the ‘80s (JUST SAY NO!) And not what Nike said in the ‘90s (JUST DO IT!) more buyers would get a better deal on closing cost when they purchase a new home.
We owe it to our clients to do everything we can to help them have a win,win,win deal!
Oh the restaurant owners who were in the other room decided that they would not do any deliveries if an orders are not at least $15.00.
Subscribe to CommentsComment