Want to buy a new home? Be careful.

By
Real Estate Agent with Atlanta Communities 303302

I used to love helping my clients buy a new home. That "New Car" smell, the long home warranty, the newness of it all. But recently that has begun to change. I have noticed a definite trend away from the easy to work with builders. I spoke to several agents yesterday that seemed to be seeing the same thing.

For instance, I am currently helping a young couple purchase their first home. We are working with a regional home builder that I have worked with before. They have a spec home that has had two failed offers on it. The paperwork showing upgrades is a mess. They want my clients to pay half the upgrade costs right up front. These upgrades were put into the home before my clients ever saw it. Not gonna happen.

My clients really like this home, so we made a full price offer. Nope, says the builder. We need an additional $675 over the listed MLS price. Oh, and the builder is offering a broker bonus on the sale of this home, but only if you ask, which I did.

Another agent lost a client because the on-site agent convinced them that they could get a better deal without the agent. They didn't. This builder has been banned from our office over that.

So, if you are looking at a new home to buy, now more than ever, you need representation from an agent to assure that you are not taken advantage of by what appears to be an increasingly hostile builder community.

Posted by

Peter den Boer, Associate Broker, Realtor

Atlanta Communities Real estate Brokerage

 

Ph. 770.713.1545

www.denboerhomes.com

 

I write about daily life as a Realtor in the Towne Lake Community in Woodstock Georgia.

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Rainer
230,518
Mike Rock
Complete Design - Granite Bay, CA
Granite Bay Luxury New Construction...For Less

im not sure about your area, but we dont seem to have this around here. however.... i do so agree about the upgrades issues and the confusion and costs of those..i get how the builder is sensitive of making it their home with their upgrades (doesnt apply in your example) and i understand the buyers hesitant to pay for everything cash...there is a happy medium

Oct 15, 2015 11:42 PM #1
Rainmaker
770,754
Norma J. Elkins
Elite Realty Group - Morristown, TN
Realtor - Elkins Home Selling Team

Great blog...thanks for sharing!

Oct 15, 2015 11:53 PM #2
Rainmaker
679,919
Nicole Doty - Gilbert Real Estate Expert
Zion Realty - Gilbert, AZ
Broker/Owner of Zion Realty ZionRealtyAZ.com

Sorry to hear that Peter. The builders here got a bad reputation before the recession because their homes were selling so fast they offered no incentives, or upgrades, and some of them weren't even offering commissions at all. They've since seen the errors of their ways and have been making good again the past few years. 

Oct 16, 2015 02:15 AM #3
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Rainmaker
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Peter den Boer

MBA,GRI, Associate Broker, Realtor
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