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Free Reports
What Builders Hope Buyers NEVER Learn. FREE Report
Reveals Secrets About New Construction That Can Save You Thousands of
Dollars!
If you are in the market to buy a house, one of the first
things you will probably do is check out all the new construction in the area.
Studies show that, given their "druthers", most people would rather buy a brand
new home than purchase a resale. Like a new car, a new house has a special
feeling attached to it, right down to that ‘new house smell’.
The
average couple begin shopping for new construction in this way: they buy the
Sunday newspaper, circle all the big ads, climb into the car, and plan a day of
visiting sample homes. They are excited and in high spirits. After all, this is
going to be great fun!
They drive up to the first sub-division. (Finding
the sample home in one of these developments is never difficult. You just look
for the flags in the driveway, the sign on the lawn, and thousands of dollars in
professional landscaping.) They pile out of the car, go through the door, and
are greeted by an attractive, smiling salesperson.
"Just looking," they
tell the Builder’s Representative.
"No problem," says the salesperson.
"If you’ll simply register here, I’ll give you a brochure, and point you in the
right direction."
They dutifully fill out the registration form, get the
brochure, and tour the house. More likely than not, to exit the sample home,
they have to go right back past the Builder’s Representative. The salesperson,
still smiling, stands ready to answer any and all questions they may have.
If the home they saw holds any interest for them, they will probably
view the plot plan. The salesperson points out which lots are still available,
which have premiums, and which are ready for immediate delivery. He or she will
sincerely confide to our couple that a small, totally refundable, deposit will
"hold" the lot they like best. This will give them a chance to think about it,
without running the risk of someone else grabbing "their" lot.
The
couple, feeling very comfortable with this pleasant and non-aggressive
salesperson, and very appreciative of the special "insider-information" about
the lot, decides to leave the deposit.
After all, they have nothing to
lose and everything to gain, right?
Wrong.
What the couple did
when they first walked in and registered was to sign away their opportunity to
have their own agent represent them if they buy from that builder - with the
builder footing the bill for that representation! When they left the deposit on
the lot, they further sealed their fate.
Here’s the truth that
builders hope you never discover:
In today’s competitive market,
most developers realize that the buyer for their home may already be working
with a real estate agent, and THEY BUILD A COMMISSION FOR THE AGENT INTO THE
SALES PRICE OF THE HOME. That’s right, the commission to pay YOUR agent is
ALREADY figured into the price that the salesperson quoted you. And the house is
the SAME price, even if you walk into the sample home all by yourself, without
an agent.
How much money are we talking about? Well, if a house is
$200,000, the builder may be offering anywhere from 2%, to a full 6%, for the
agent who brings a buyer. That’s $4,000 -- $12,000 that you are going to pay,
whether an agent represents you or not! What happens to all that extra money if
you walk into the sample home yourself, as the couple above did? You guessed it,
the builder keeps it!
And that is not even the WORST part. While you are
going to pay that extra money even if you do not have representation, the risks
you run by just having the Builder’s Representative "take care" of everything
could end up costing you a whole lot more!
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