Tucson Home Buyers Don’t Give Away Your Right To Representation
We hear the same story many times from buyers coming in to Tucson to look at buying a new home. “We didn’t want to bother anyone or take up their time so we went looking ourselves.”
Do you realize that if you go to a new construction site and sign in you have given up your rights to representation in any real estate transaction for new construction you enter into at that site?
Do you realize that if you take a guest program where the developer provides you accommodations you are giving up your right to representation in any new construction real estate transaction you enter into at that site?
We get a lot of disappointed clients because they signed away their right to representation and never even realized it.
I wish there were a New Construction Miranda Warning.
“If you sign in or accept accommodations from us without a real estate agent present at your first visit you give up the right to representation in any real estate transaction you enter into with us.”
I think there would be a lot of people that would walk right out the door and never sign in. Unfortunately there is no New Construction Miranda Warning.
Please be careful and don’t give away your right to representation for a bowl of porridge or less.
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Dave Smith | Tucson Real Estate
Can being represented by a realtor make a difference when dealing with a contractor? What additional bargaining power does that give the buyer?
Jim,
The answer is YES! It can make a huge difference dealing with a contractor. Dealing with a contractor goes way beyond the price paid. It involves, guiding buyers through the inspection process, final walk through where additional items are brought to the buyers attention by the agent representing them. We often find things that need to be addressed that the contractor or their representative will not point out. Why? because they don’t represent you, they represent the contractor.
Even in the negotiating the purchase price, often an agent can get further incentives added in the deal because they are aware of what is being offered at another location or by another site. We are in the market and know the various incentives that are being offered and have just been offered. The contractor is going to offer as little as possible to get you to purchase. They won’t make you aware of any more than they have too. We on the other hand get special mailers and flyers from them stating to us various incentives and deals they are willing to offer.
Often when we call the site itself we find out about a home that is a real deal because the purchase fell through and they want to move it right away. This is information not usually available to the public.
It comes down to Knowledge is power to the buyer and their agent provides that knowledge of the local market. The contractor represents the contractor and is going to provide as little as they can to get you to buy.
Here is the final question: “If there wasn’t an advantage to having an agent represent you why do they limit agent representation to only if they come with you on the first visit?”
If there were no advantage to the buyer then the contractor wouldn’t make this stipulation in the first place. : )
Well put. I have had neighbors literally reduced to tears when they bought a new condo through the builder. When they had a huge problem . . . they had no help. It got complicated, I was able to help. They kept saying they were sorry and they just did not know they could have had my help from the start. They lived across the street and know how busy I am. I am never too busy to help a neighbor.
I lost some buyers to this just this week. They wanted a house ‘there’ and had already registered with the builder’s agent. When I explained to them what they were getting into, that I could no longer help them, they shrugged their shoulders and said it didn’t really bother them.
Not only that, I had shown them some other homes that were better deals (IMHO).
It frustrates me no end, how they give up any protection like that, but to each his own.