Another One Bites The Dust: The Builder's Rep Works for the Builder, Not YOU!

Real Estate Agent with


I met some potential clients at one of my open houses.  They came back later that week for a second showing on my listing, and when I called them to get some feedback,  they told me that they had signed a contract on another house in a nearby developing community.


I thought, great, another one bites the dust.   :(

I shared some prices of sold homes in that community,and it didn't take long before they felt just like I did about their "deal". Of course, if it were up to me, I would rip up that contract, and start all over, but that was not my decision to make.  They were too worried they would lose the house even though market conditions indicated that the home would probably still be sitting there next summer.

Ok...maybe not this bad.......


They were told that they got "this awesome deal because they did not use a realtor"...when in actuality, if they had used a realtor, they would have gotten a much sweeter deal.... They also would have signed a TREC contract, not a builder's contract, where the builder is the only one who is protected.  They did not get an option period either.  Is that a good deal?  They will pay over 10% of the market value of that home, and over the lifetime of the loan, who knows how many thousands of dollars this will equate.  They were also told they had to close in less than 4 weeks to get "the great deal". 


Readers, a realtor will represent your best interest and negotiate the offer so that it is highly in your favor.  The realtor knows the marketplace and is aware of what the other homes in that neighborhood were sold for.  Maybe that community is giving away a free outdoor kitchen to the buyers, but how would you know?  Many times these incentives are not advertised.  The realtor will also provide due diligence when evaluating a particular property.   There are a whole host of things that can go wrong after you sign a contract, and without the expertise of a realtor guiding you along, you could lose a lot more than your money, time, and sanity.  Builders have already factored in commissions to their bottom line, and when you don't use a realtor that "extra money" will go into their pocket, not yours.  The builder's representative works for the builder, not you! 

Never, ever walk into a new home community unrepresented.  It will be the biggest mistake you will make should you decide to make an offer on a home.  You need a realtor who knows the business and is on your side, looking out for you and you only.  That is what we are paid to do.  Not by you, either, but by the seller.  So, call one of us.  We would love to help you!


Hugs and handshakes, Kathy Jones



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Tom Bailey
Margaret Rudd & Associates Inc. - Oak Island, NC

Kathy it happens all the time. What do we need to do to educate buyers? Blogs like yours help, but there are so many uninformed buyers.

Mar 30, 2010 01:59 PM #1
Kathy Jones - Houston, TX
Giraffe Realty, Broker, ABR

Hi Tom....  I run into this mentality all the time...and to be honest, before I sold real esate for a living, I thought the same thing... It would be nice if NAR would address this on a commercial/podcast/ anything...maybe go into a bit more detail about who pays for the services of a realtor and how important it is to be represented. 

Apr 01, 2010 06:44 AM #2
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Kathy Jones

Giraffe Realty, Broker, ABR
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