BUYERS

Buying A Brand New Home --- Q & A 1. Why shouldn’t I represent myself as a homebuyer when buying a New Home from a Builder? Most people in the Denver Metro area are spending a quarter of a million dollars and more on the purchase of a new home. This is single largest investment that most Americans will ever make. It only make sense to have someone who is full time in the Business of Real Estate representing you!!!! 2. Do I need to be represented by a Real Estate Broker when I Buy a new Home? Yes…… Yes…… and…… Yes!!! The onsite sales person works for and represents the builder. They are not representing you…. They are professionals that have been trained by the Builder to obtain information about you the Buyer, then the builder can better negotiate AGAINST YOU with this information. You as a home buyer telling everything to that onsite sales person is like asking the fox to watch the hen house. They may have a great smile and are friendly but they“ARE NOT” looking out for your best interest…….. Their loyalty lies with the builder!!! 3. Isn’t the on site sales person there to watch out for my best interest? “NO” they are hired by the builder and represent the builder…… not you!!! 4. How does having a Real Estate Broker representing me…… help me? First I will teach you: What you can say…. What not to say…. What not to do…. so that when we are ready to negotiate all the ace’s are not on the side of the Builder. Through some simple techniques, we can possibly save thousands of dollars….. 5. Larry, If you represent me, the buyer, who pays your commission? “ALL” builders offer a co-op to outside Brokers…….. my commission is paid by the builder (just like on a re-sale home) even though I represent you. 6. Should I fill out one of those Builder information cards at a new home site? No… Do Not…. And if you think that these onsite sales people are not trained professionally by the builder, just watch how pushy some can get, in order to obtain your name and phone number. 7. What difference does it make if I do fill out one of those cards? Some builders will not compensate your Real Estate Broker if your Broker is not with you the first time you enter a new home site. Translation: They do not want you to have someone looking out for your best interest, because then the scale of negotiations does not tip in their favor. 8. Sometimes on the spur of the moment we decide to go looking at new homes…… should I call you every time we do this so you can follow us? No….. I do not need to be attached to you at the hip…… but when you do go….. Do not fill out the builder information cards and do not get into in-depth conversation with the onsite sales person…… If you find a home you are interested in….. call me and we will arrange a time for both of us to go back. This way you are sure to have representation and someone watching out for your best interest from the start. This is not to say that we cannot arrange a time for us to go view New Homes together. That is actually my preference. 9. The Builder is already offering the home with thousands of dollars of incentives, would the builder really discount it anymore? Every situation is different….. and this is where I use my expertise to gather information from the builder in order to negotiate a better price for you, even with the builder incentives. 10. What happens if you represent us and we try to negotiate the price of the home and the builder does not budge? It cost you the Buyer nothing…….. and throughout the buying, building, and closing of your new home, you have someone looking out for your interest. 11. I need to sell my home in order to buy the new one, some builders have Listing Brokers that they recommend I use…….. should I use them? The Builder wants your home sold and closed as quickly as possible. The broker that they are recommending even though they may be an independent Real Estate Company, they still have ties with the builder….. & are being compensated somewhere, and they want to keep those referrals from the builder coming in…… does this sound like they truly have your best interest at heart…… It has been suggested that some onsite sales people receive kick backs from the Broker listing and selling your home……. And because this is illegal, it would possibly be a cash kick back. (Which is very hard to trace or prove) Does this sound like your best interests are being watched out for? Work with a Broker who is independent of the Builder, so that none of these questions are even remotely raised. (if you are still unsure….. re-read the 2nd question) 12. The onsite sales person recommended an outside Real Estate Broker that will sell my current home at a discount rate……. Larry, will you sell my current home for the same commission? Most of the time I can come close to or meet what the builder is offering…… Give me a call and lets talk about it. Just remember what you are talking about here is maybe 2-3 thousand dollars…. And if you list your home with one of their brokers who are looking for future builder referrals, you could very well loose that……… and much more……. How can I reach you? Larry Anderson (303) 915-9407 or click Contact Larry to e-mail me