Everyone Having Representation Results In A Clean Deal & Sweet Dreams
Barbara Todaro is a real estate agent who specializes in listings. She is a New Construction Maven and her words of advice should go out to ALL buyers who have just a notion of "new construction" dancing in their heads.
The listing agents / sales teams / sales office staff do one thing ~
That is: REPRESENT the builder/seller/owner
They are not going to tell the buyer about the negotiation process. They have NO DUTY to the buyers to do so.
This year I represented several buyers in their NEW CONSTRUCTION home purchases. One was a pre-sale new construction in a sub-division. One was a new construction spec home, already finished. A few were semi-custom pre-sales. One was entirely a custom build including lot selection and builder selection (i.e., NOT a new construction sub-division)
With each transaction -- and the only thing they had in common was that they were built this year -- if the buyer didn't have me representing them they would not know what to expect, what was kosher, what wasn't kosher, etc., etc.
The listing agents love it when I bring a buyer to their new construction sub-division. They know that the Buyers are going to be well REPRESENTED.
Please read Barbara's article with her valued insights . . .
Whose job is it to educate buyers about the topic of representation, especially when the product is new construction? Builders love nothing better than to have a potential buyer visit the construction site and model home without accompaniment from a buyer’s agent. That scenario equates to a Doctor performing surgery without proper lighting. I’d say that patient’s going to be at a great disadvantage!
We are listing agents and new construction is our niche. We’re continually witnessing buyers attending an open house and reserving a lot without consulting a buyer’s agent. We have disclosed verbally and in writing that we represent the builder, and they are welcome to seek out a buyer’s agent or we can direct them to one. Most insist on not involving another agent into the equation. Very Foolish!!
There’s not much more that a listing agent can do, other than what we do. If the buyer insists on using the listing agent for guidance, that’s what we allow to happen. We did our job.
Are buyer agents doing their job? It’s their job to educate buyers about the importance of having representation, especially with new construction. Listing agents will do everything to provide more income for the builder client. There will be no negotiating of price; there will be selling of optional extras, and not all of those extras will have a good return in the future. Those extras will certainly have a large profit margin for the builder.
There are many scenarios that arise during construction, and without proper representation, the decision will always be in favor of the builder. Buyers would be wise to start their search for a new home only with the guidance of a buyer’s agent who is well-versed in new construction, including methods and materials. As a listing agent of new construction, my team members prefer to have a deal with a buyer who has proper representation. It’s a cleaner deal, and we can all sleep well at night!!
Barbara Todaro, sales manager of RE/MAX Executive Realty
308 W. Central St...suite E
Franklin, MA 02038
508-520-9881
www.todarosellsfranklinma.com
Copyright © 2015 Barbara Todaro
All Rights Reserved
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