When Builders Make Their Own Rules

By
Real Estate Broker/Owner with House to Home, Inc. - Denver Real Estate - 720-231-6373 DRE# ER40011786

 

Yesterday I took my Sellers out to locate a replacement home, and they REALLY wanted a new or newer home, so nice to know there were 4 homes that fit their criteria.

 

 

One builder had the home under contract over the weekend but says they usually wait several days before they change the status.  OH, but they have another of the same model, but it is a walk-out, so it is $50k more....  

 

Then the last builder we visited, seemed perfect.   It was a paired home, brand new and could close in April, great finishes and my clients wanted to write a contract.   UNTIL, the sales rep said, the listed price in MLS is the "guarantee price", and it is only good IF their in-house lender is used.  If my buyers wanted to keep their lender, they would have to pay $10K more.    This listing then should have been listed at the higher price, and in comments say the price would be at the lower price with the use of their lender.   This is an MLS violation!

 

These antics from the builders left a bad taste for the buyers, so we went back to a resale, and wrote up an offer last night.

 

 

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Re-Blogged 1 time:

Re-Blogged By Re-Blogged At
  1. Brian England 03/13/2020 10:22 AM
Topic:
Home Buying
Tags:
builders in denver

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Rainmaker
4,316,467
Joan Cox
House to Home, Inc. - Denver Real Estate - 720-231-6373 - Denver, CO
Denver Real Estate - Selling One Home at a Time

Morning Nina Hollander I usually call in advance too, but got home from the inspection at 6, then set showings for yesterday, and left to deliver EM to title at 9 am, before they opened.   It has been a very busy week.

Mar 13, 2020 05:32 AM #3
Rainmaker
1,558,070
Kat Palmiotti
406-270-3667, kat@thehousekat.com, Broker, Blackstone Realty Group - brokered by eXp Realty - Kalispell, MT
The House Kat

That is definitely unfortunate about the new builds. I've had some good builder experiences, but I'm sure there are bait-and-switch tactics from some. Luckily your buyers found a resale they wanted!

Mar 13, 2020 05:45 AM #4
Rainmaker
4,316,467
Joan Cox
House to Home, Inc. - Denver Real Estate - 720-231-6373 - Denver, CO
Denver Real Estate - Selling One Home at a Time

Kat, I love selling new construction, and buyers most often WANT new, so this was very unfortunate.    

Mar 13, 2020 06:00 AM #5
Rainmaker
872,438
Norma J. Elkins
Elite Realty Group - Morristown, TN
Realtor - Elkins Home Selling Team

While factories are booming and growing here in our area, we are desperate for new homes.  There are several new builders working on sub divisions so things are looking up.  Hope that you have a fantastic Friday!

Mar 13, 2020 06:41 AM #6
Rainmaker
1,443,244
Jeffrey DiMuria 321.223.6253 Waves Realty
Waves Realty - Melbourne, FL
Florida Space Coast Homes

Joan, I would send a copy of the contract to the builder and let them know they lost a stone cold buyer because they are SKANK

Mar 13, 2020 07:26 AM #7
Rainmaker
201,808
Eva B. Liland Century 21 Doug Anderson
Century 21 Doug Anderson - Lancaster, CA
Glad to be of Service 661-714-1643

I have little to none experience, dealing with new home builders and before I do, I need to contact each builder to find out what their policies are. Glad to read that you found a resale that they liked!

Mar 13, 2020 07:37 AM #8
Rainmaker
4,316,467
Joan Cox
House to Home, Inc. - Denver Real Estate - 720-231-6373 - Denver, CO
Denver Real Estate - Selling One Home at a Time

Norma J. Elkins that sounds exciting for your area --- you have a good weekend too! 

Mar 13, 2020 08:00 AM #9
Rainmaker
4,316,467
Joan Cox
House to Home, Inc. - Denver Real Estate - 720-231-6373 - Denver, CO
Denver Real Estate - Selling One Home at a Time

Jeff, the on-site sales rep was really nice and 9 months in the business.   It was the VP of sales that wasn't so nice.

Mar 13, 2020 08:01 AM #10
Rainmaker
4,316,467
Joan Cox
House to Home, Inc. - Denver Real Estate - 720-231-6373 - Denver, CO
Denver Real Estate - Selling One Home at a Time

Eva, I have sold MANY new homes over the years, and have not run across this before, and felt it was very bad behavior, and definitely an MLS violation.

Mar 13, 2020 08:02 AM #11
Rainmaker
2,881,686
Brian England
Arizona Focus Realty - Gilbert, AZ
MBA, GRI, REALTOR® Real Estate in East Valley AZ

Some builders are very sneaky and I feel so bad for those buyers that get taken advantage of because they don't have an agent representing them.

Mar 13, 2020 08:10 AM #12
Rainmaker
4,316,467
Joan Cox
House to Home, Inc. - Denver Real Estate - 720-231-6373 - Denver, CO
Denver Real Estate - Selling One Home at a Time

Brian England that is so true, the unsuspecting public doesn't know what sneaky things builders pull!  

Mar 13, 2020 08:33 AM #13
Rainmaker
2,137,847
Grant Schneider
Performance Development Strategies - Armonk, NY
Your Coach Helping You Create Successful Outcomes

Good morning Joan - you are right about that.  I know the DR Horton did that with our house in Florida.  They told us about the discount and closing cost waiver for using their lender or paying cash.

Mar 13, 2020 09:36 AM #14
Rainmaker
4,316,467
Joan Cox
House to Home, Inc. - Denver Real Estate - 720-231-6373 - Denver, CO
Denver Real Estate - Selling One Home at a Time

Grant, this was the first for the price being tied to using an in-house lender.  VERY common for other incentives.

Mar 13, 2020 09:49 AM #15
Rainmaker
5,772,444
Roy Kelley
Realty Group Referrals - Gaithersburg, MD

Thank you very much, Joan, for sharing this experience. We have seen this happen in our area as well.

Mar 13, 2020 11:19 AM #16
Rainmaker
3,620,736
Michael Jacobs
Pasadena, CA
Los Angeles Pasadena 818.516.4393

Hello Joan - an interesting story and one that would likely lead to frustration for prospective buyers.  Keeping things simple does not seem to be philosophy practiced by all.  

Mar 14, 2020 07:11 AM #17
Rainmaker
4,316,467
Joan Cox
House to Home, Inc. - Denver Real Estate - 720-231-6373 - Denver, CO
Denver Real Estate - Selling One Home at a Time

Roy, it is just sad when they try to take advantage of the public.   REALTORs remember this! 

Mar 14, 2020 09:39 AM #18
Rainmaker
4,316,467
Joan Cox
House to Home, Inc. - Denver Real Estate - 720-231-6373 - Denver, CO
Denver Real Estate - Selling One Home at a Time

Michael, if they just play fair with all would be good! 

Mar 14, 2020 09:40 AM #19
Rainmaker
4,316,467
Joan Cox
House to Home, Inc. - Denver Real Estate - 720-231-6373 - Denver, CO
Denver Real Estate - Selling One Home at a Time

It is sad when a builder makes these decisions, and does put an imprint on REALTORS' minds when a property comes up in the future.  

Mar 15, 2020 11:58 AM #20
Rainmaker
1,556,392
Georgie Hunter R(S) 58089
Hawai'i Life Real Estate Brokers - Haiku, HI
Maui Real Estate sales and lifestyle info

It's a shame that builders have to make their own rules and not play well with others. 

As for the picture loading issue - try coming back now and loading it.

Mar 15, 2020 01:53 PM #21
Rainmaker
4,316,467
Joan Cox
House to Home, Inc. - Denver Real Estate - 720-231-6373 - Denver, CO
Denver Real Estate - Selling One Home at a Time

Georgie Hunter R(S) 58089 I agree, and the public doesn't even know.

I usually don't go back, but thank you for suggesting to reload the pic -- had no issue today.

Mar 15, 2020 02:07 PM #22
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Rainmaker
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Joan Cox

Denver Real Estate - Selling One Home at a Time
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