Have you ever gone into a model home by yourself? Here is what will happen: they will ask you for your name. It seems harmless. Everyone asks for your name! BUT, that automatically assigns you to an agent you do not know… that works for the builder! After that, I will not be allowed to help you with that deal in any way as a real estate consultant. They can also do this if you inquire online through chat rooms, if you call them, if you go to a website, if you inquire about anything from the yard sign... they will assign their agents to you after ANY contact. Seem unfair? It does to me too! We don’t know how builders are able to get away with this, but they are!
The danger of having the builder’s agent work for you is... just that! They are the builder’s agent! So, how can you protect yourself to get the most out of your real estate experience? You can call me first. Let me know that you want to go to a model home or are interested in building and we can work through the process together. By showing up with me as your agent, you are showing up with representation. Here are four HUGE reasons you need your own representation:
You have to use the builder’s lender. THIS IS A PROBLEM! They know how much money you have, what you qualify for, and everything about you. This gives the builder all of the cards! You are left unprotected because the builder has the upperhand. As an experienced agent, I avoid the builder’s lender at all costs (if they are the best deal, we will do it, but usually they aren’t)! If they know that you can pay more, they will raise their prices without you knowing! It may appear they are offering you thousands of dollars for options or closing costs, but believe me, they pass the costs on to you, usually in the form of higher interest rates or higher loan costs.
Questions that benefit YOU are important! Having an agent with experience, who is only representing you, not only means that you get to ask questions, it also means that your agent will be asking questions of the builder/seller that benefit you. It means that you have someone who knows which questions to ask to ensure that you are getting the best deal possible. Builder contracts and the building process are different from buying a resale home, so different questions have to be asked.
Having your own agent from the beginning ensures that you get the right builder for you! Some builders do not have the best reputations--you want an agent that can help you find a reputable builder, and you don’t want to have to commit to the first builder you come in contact with.
Having your own realtor means that you have someone advocating for you. I once did a final walk-through with a buyer before they closed on their new home and the builder’s agent was not pointing out problems with the home. I noticed that the stucco was missing flashing and it was done poorly, so I pointed it out. You need someone who can recognize problems and advocate for them to be fixed prior to closing. An agent that works for the builder will not point out problems with the home because that agent is focusing on selling homes for the builder. Another experience I had with this was when a builder did not put safety brackets on a deck. My buyer noticed (yay!), but the builder would not listen to them. I had to go to bat for them and get the builder to fix the deck (without adding additional costs to the price of the home). This all has to be done BEFORE closing, because once you close on the home, the builder will not have any incentive to fix a problem that you notice.
This being said, new construction is NOT bad! WE LOVE NEW HOMES! The only problem is when you have to work with their agents. But the point is… DO NOT TALK TO ANYBODY OR CONTACT ANYBODY in any way until YOUR agent registers you with that builder. Even if you call them and avoid giving them your name and contact information, they are allowed to use your caller ID information to register you with their agent, which you now know is dangerous. You have my contact information, and if you don’t I’ll put it at the end of this post because you deserve to be represented in your real estate transaction!
TONJA MASINA
Broker and Realtor, Paradise Real Estate
801-808-5084
tmasina@gmail.com
