We've all had those buyers who are hard to contain. You know the ones that sneak out on their own to look at homes. Most often they are lured into a new construction community with an on-site agent.
It's important that we caution our buyers against such behavior and even more important that we have a Buyer Broker Agreement signed UP FRONT.
After more than 12 years in this business (trial by fire) the BBA is my best friend and has saved my bacon on more than one occasion.
The Buyer Brokerage Agreement also recently SAVED MY BUYER'S BACON.
After reaching a verbal agreement with the on-site agent, my buyer CLIENT contacted me to arrange a meeting to finalize a written contract.
First things first, the builder's contract specifically stated that the seller would only pay closing costs with the preferred lender. Don't we need an amendment to the contract to correct that? NO?
Yes, I think that as the buyer's agent, we do need amendment.
Next...you're sure that the seller will allow the buyer to upgrade the washer/dryer to a front load model? That's not an option on this selection sheet. DON'T WORRY?
No, I don't worry. We'll wait while you prepare an amendment specifying the model that the buyer wants installed as part of the purchase and sale agreement.
Are you certain that the builder will be able to comply with your 30 day close date? Oh yes, they are very responsive and we should have the signed, binded agreement back from corporate within 24 hours.
It became evident immediately that we were going to have a few issues, beginning with a very UNRESPONSIVE SELLER. It didn't take 24 hours to receive the binded agreement. It took 6 days.
Because we were dealing with new construction, there were 4 documents that the lender required the seller to complete. It took 8 days to receive those documents.
Three days prior to the closing, I was contacted by the on-site agent to say that the upgraded washer/dryer specified in the contract was "not an option" that the builder was willing to provide.
My response was that they should review the Amendment to the Contract signed by all parties and get back to me with the expected delivery date of the items specified in the contract.
While it may be very encouraging to have the listing agent or on-site new construction agent tell the buyer just what they want to hear, rest assured that the terms of the written contract will always prevail.
When it's time to buy a new home, make sure to stack the deck in your own favor and hire your own dedicated BUYER'S AGENT to represent your interests in the transaction.
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