TESORO CLUB New Home Buyer FREE Buyer Representation!
You visit an upcoming community and walk into a model home; no need for a real estate agent right?
There couldn’t possibly be any hidden dangers in having a brand new home built from scratch directly from the builder. WRONG! Most new home buyers make this mistake and then the salesperson happily explains that you don’t need a real estate agent because the transaction is so clear cut. “You’re dealing directly with the builder, not the seller who may have hazards in the home or try to outwit you with contractual jargon.”
Buying directly from a home builder only means different contractual jargon, different decisions and different hazards. Any paperwork that you sign that commits you to purchasing a home and giving up thousands of dollars should have the benefit of a professional real estate agent to explain everything you *think* you know.
One of the most confusing enticements that a home builder dangles is the incentives. Usually you’ll be allowed incentives that will only be provided free of charge *if* you apply to the mortgage lender of their choice. This has been blatantly standard for all home builders for years but recently it changed due to new RESPA laws. That’s not to say home builders still do not seek using this enticement. The law doesn’t specifically state they cannot use incentives to attract business. This is a good example of why you should take a Realtor along with you before signing on the dotted line.
RESPA is the Real Estate Settlement and Procedures Act that was passed in 1974 to help consumers get a fair deal when purchasing a home by eliminating kickbacks and unnecessary referral fees. RESPA has been updated and added to throughout the years however the majority of home buyers never see examples of these laws and wouldn’t know if the situation is subject to the law.
There are so many “as long as” and contingencies that could be included in a contract to protect both the home buyer and the builder however without good professional representation a home buyer would not know if they are really getting the value they seek.
If you’re still unsure whether you need a realtor to accompany you to the model home think of these few items:
• If for any reason you are unable to finance the purchase of a new home how can you ensure you receive your deposit back? What language must be in the contract?
• If you decide to find a lender that is not affiliated with the builder what consequences will you endure? Will the contract change? Will you still be able to get any seller closing costs? Will you be able to keep the discounts they originally offered?
• Will you have any options to change the settlement date? This seems to become a problem especially when the buyer learns they must pay a portion of interest to move into a new home at the beginning of the month. What are the consequences if you need to delay the settlement date?
There are so many “what-if” and “how-come” that you will need answered but will you rely on the builder’s salesperson who works for the builder and not you?
No matter how simple the process seems to purchase a new home from a builder you cannot go wrong by obtaining professional advice from a real estate agent who looks after your interest.
Bold Real Estate Group is a boutique agency committed to concierge personalized service for discerning buyers. Our team of professionals strive to provide the highest standard of real estate service Locally, Nationally and Internationally by combining today’s technologies with yesterday’s caring attitude. Our goal is to give our clients the confidence to know that their transaction will be completed successfully and with confidentiality. Buyers trust us to expose them to properties that meet and exceed their desires. We build trust through our words and actions, instilling customer loyalty for life. Bold Real Estate Group is your resource center in Florida for buying, selling, and renting services of residential and commercial properties.
