Don't Buy a Franklin TN New Construction Home Without a Buyer's Agent

By
Real Estate Broker/Owner with Franklin Homes Realty LLC

Don't Buy a Franklin TN New Construction Home Without a Buyer's Agent

Don't Buy a Franklin TN New Construction Home without a Buyer's AgentSeveral years ago, I met a couple who were buying a Franklin TN new construction home. They had their existing home listed with an agent but they didn't use her to help them purchase the new construction home.

They were building a monster of a house in a neighborhood that had a variety of home sizes but nothing as big as the one they were building.

After adding all the bells and whistles, the sales price on this house came to a whopping $750,000. The median sales price for homes in this neighborhood at the time was $382,000. OUCH!! Of course, they didn't know this because they decided to make this purchase without the assistance of a real estate agent.

There were so many things wrong with this purchase. Not only was the price way above anything else in the neighborhood, the quality of the construction was not up to par for a house at this price. This builder's sweet spot was homes priced under $400,000. The quality at that price was adequate but at $750,000, this builder was way out of his realm. Unfortunately, they didn't know this because they didn't use a Buyer's Agent.

Don't buy a Franklin TN new construction home without a Buyer's Agent.

I recently heard this couple was selling their house. I didn't even approach them about listing it because I knew they would ask $750,000 or more. One of the reasons they were selling...poor quality. Hmm, I could have told them that when they bought it. Oh, that's right they never asked.

Sure enough, the house came on the market priced at $750,000; almost $200,000 more than any other house in the neighborhood. They have already dropped the price $25,000 but they are still a long way from getting this home sold.

I write on this subject often. Don't buy a Franklin TN new construction home without a Buyer's Agent. It costs the buyer nothing. The seller/builder has already priced the house with this in mind. The advice a Buyer's Agent provides is so important. Buyer's Agents do so much more than negotiate the price of a house for you. They have knowledge about other sales and  builders in the area who may provide exactly what you're looking for. It can keep a buyer from making this kind of mistake.

Had the buyers, now sellers, had the advice of a real estate agent, they could have possibly saved hundreds of thousands of dollars. Or at the very least, gotten a house that was of the quality of a house at this price point.

When you are ready to buy a Franklin TN new construction home, please remember this story. Don't make the mistake this couple made. Hire an agent with new construction home sales experience. It could save you thousands of dollars. 

As a Franklin TN new construction specialist, I would be happy to help you with your home purchase. 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.
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Re-Blogged 1 time:

Re-Blogged By Re-Blogged At
  1. Jack O'Neal 04/30/2014 01:59 AM
Topic:
Home Buying
Location:
Tennessee Williamson County Franklin Franklin
Groups:
Buyer Information - What Buyers Need to Know in Today's Market
Advice for Buyers
Bananatude
Bartender, Make it a Double
HyperLocal Neighborhood and Community Posts
Tags:
new construction
buyers agency
franklin tn

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Ambassador
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TeamCHI - Complete Home Inspections, Inc.
Complete Home Inspections, Inc. - Brentwood, TN
Home Inspectons - Nashville, TN area - 615.661.029

 Good morning, Tammie. Most folks do not realize that the on-site agent works for the builder and they have the builder's best interest at heart.

Apr 28, 2014 07:03 PM #2
Rainmaker
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Sheila Anderson
Referral Group Incorporated - East Brunswick, NJ
The Real Estate Whisperer Who Listens 732-715-1133

Good morning Tammie. I read your title and chuckled: boy are you right. Insight and knowledge is everything. Suggested.

Apr 28, 2014 09:37 PM #3
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Amanda Christiansen
Christiansen Group Realty (260)704-0843 - Fort Wayne, IN
Christiansen Group Realty

I strongly agree Tammie.  There are so many buyers our there that think they don't need an agent when building.  They do!  

Apr 28, 2014 10:13 PM #4
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Liz and Bill Spear
RE/MAX Elite 513.520.5305 www.LizTour.com - Mason, OH
RE/MAX Elite Warren County OH (Cincinnati/Dayton)

Tammie, We see this mistake WAY too often, and then we're asked to come in and clean up the aftermath years later.  Problem is by then the damage has been done and it can't typically be undone.  And our area builders already have our commission factored in, so it cost the buyers NOTHING extra to have our services on their behalf.

Apr 28, 2014 11:29 PM #5
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Tammie White, Broker
Franklin Homes Realty LLC - Franklin, TN
Franklin TN Homes for Sale

Stacey - These buyers/sellers will lose tens of thousands if not hundreds of thousands of dollars on the sale of this home. This could have been avoided if they'd used a buyer's agent who knows and understands the dynamics of new construction sales.

Michael - Buyers are searching on the internet. I believe many know it and don't care. They think they are smart enough to buy on their own, not recognizing what can happen.

Sheila - It sure is.

Jared - Buyers need to understand that when we write these things we really DO have their best interests at heart.

Bliz - That's why I never even approached this couple about selling. They made a mistake early on that was going to be impossible to undo. I'm very good at what I do but if a home is over-priced, it's not going to sell. No matter how much marketing you do.

Apr 29, 2014 12:51 AM #6
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Debb Janes EcoBroker and Bernie Stea JD
ViewHomes of Clark County - Nature As Neighbors - Camas, WA
REALTORS® in Clark County, WA

I actually work for builders and encourage people to use their own Realtor. Although, I can certainly attest to the fact, that in circumstances where I have represented buyers, I've made certain they got a great deal. :)

Apr 29, 2014 07:51 AM #7
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Debb Janes EcoBroker and Bernie Stea JD
ViewHomes of Clark County - Nature As Neighbors - Camas, WA
REALTORS® in Clark County, WA

Oh, and I want to add, I always insisted on a home inspection. And, I fully admit, I don't think all builder sales rep are created equal. Enough said. But, overall, you are so right - buyers should normally find their own agent to negotiate the transaction and building process.

Apr 29, 2014 07:56 AM #8
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Tammie White, Broker
Franklin Homes Realty LLC - Franklin, TN
Franklin TN Homes for Sale

Debb - This is an extreme example of how outside assistance could have saved a buyer a lot of money and grief. It will be a hard lesson for these buyers/sellers to learn.

Apr 29, 2014 08:02 AM #9
Rainmaker
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Bette Gottwald
UNITED REAL ESTATE | Central PA - Mechanicsburg, PA
"Bet"on Central PA Real Estate!

Tammy, On the surface it looks like the buyer gets great incentives from the developer but, taking a closer look at the builder contract, often the buyer is actually paying for costs usually associated with the seller.  

Apr 29, 2014 10:50 AM #10
Rainmaker
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Joan Whitebook
BHG The Masiello Group - Nashua, NH
Consumer Focused Real Estate Services

Hi Tammie -- I was just wondering how things work in your area - you stated that

"It costs the buyer nothing. The seller/builder has already priced the house with this in mind."   

  In NH often the builders offer a very low co-broke fee.. or a flat fee... and that is based on the "base price" of the home without any upgrades. 

 

Apr 29, 2014 11:57 AM #11
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Debbie Reynolds
Platinum Properties - Clarksville, TN
Your Dedicated Clarksville TN Real Estate Agent

Tammie, It is never smart to be the highest priced house in the neighborhood and when you are way over the rest of the neighborhood you need to be prepared to lose money.

Apr 29, 2014 12:42 PM #12
Rainmaker
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Carla Muss-Jacobs, RETIRED
RETIRED / State License is Inactive - Portland, OR

I've never heard of new construction specialist, Tammie.  Is that a special designation or something local to your market? 

Apr 29, 2014 02:00 PM #13
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Tammie White, Broker
Franklin Homes Realty LLC - Franklin, TN
Franklin TN Homes for Sale

Bette - This is true. Often there is no way around that, other than to get addtional incentives. It all depends upon the market we're in.

Joan - In TN, buyer's agents get the same commission as he would for an existing home. Otherwise, what is the incentive for agents to bring buyers.

Debbie - That's how I originally started this post but them it morfed into something else.

Carla - It is a designation. It's called Certified New Home Specialist.

Apr 29, 2014 02:38 PM #14
Rainer
203,536
Rod Pierson
Results Real Estate Inc - Redding, CA
Northern California
Tammy, It looks like the first mistake is not using an agent to purchase the land to build their dream home. They sound like they have more money than common sense.
Apr 29, 2014 02:44 PM #15
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Tammie White, Broker
Franklin Homes Realty LLC - Franklin, TN
Franklin TN Homes for Sale

Rod - You said it.

Apr 29, 2014 03:14 PM #16
Rainmaker
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Michael Setunsky
Woodbridge, VA
Your Commercial Real Estate Link to Northern VA

Tammie, every buyer who wants new construction should read this post. Unfortunately, this buyer had to learn the hard way by not using an experienced agent.

Apr 29, 2014 11:35 PM #17
Rainmaker
2,454,054
Richie Alan Naggar
people first...then business Ran Right Realty - Riverside, CA
agent & author

yes to every buyer having an agent...With stakes this high, how can anyone think different?

Apr 29, 2014 11:51 PM #18
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Tammie White, Broker
Franklin Homes Realty LLC - Franklin, TN
Franklin TN Homes for Sale

Michael - Unfortunately, I'm not sure they will ever recognize that.

Richie - Agreed.

Apr 30, 2014 01:26 AM #20
Rainmaker
1,228,961
Gene Mundt, IL/WI Mortgage Originator - FHA/VA/Conv/Jumbo/Portfolio/Refi
NMLS #216987, IL Lic. 031.0006220, WI Licensed. APMC NMLS #175656 - New Lenox, IL
708.921.6331 - 40+ yrs experience

Tammie:  I just Closed a loan with a couple that should have read your post and taken your advice.  They navigated their purchase by themselves ... and oh man.  What a mess and what stress they put themselves through because of it.  If only they'd had someone guiding them and assisting them along the way!  

Gene

Apr 30, 2014 06:13 AM #21
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Tammie White, Broker
Franklin Homes Realty LLC - Franklin, TN
Franklin TN Homes for Sale

Gene - It's so disheartening to hear this but it happens over and over because buyers think they can manage on their own.

Apr 30, 2014 07:35 AM #22
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