Tuesday, September 23, 2014

Buying a New Home In Colorado



Many new home buyers enter into contracts and buy new homes without a broker.
Let’s clear up some possible misconceptions.
"I don’t want to pay a buyer broker to represent me."  I will not charge you anything for my buyer broker services in which the home builder offers to pay a commission. This is almost always the case.
"The new home salesperson is so nice and will look after my interests." With new homes, it is almost always the case that the model home sales person is an employee or seller’s agent of the home builder company. Don’t you want a professional looking after your interest?
"The new home salesperson told me I didn’t need a buyer broker." Yes, maybe they will tell you that. Beware. Often, not always, a new home builder salesperson will earn more if you do not have a buyer broker.
"New home prices are firm and there is no room for negotiation; it’s a take it or leave it deal." Sometimes yes, sometimes no. There is no law in making an offer other than the builder’s terms. Having an experienced agent with negotiation skills and experience is to your benefit. An experienced and knowledgeable buyer broker should know who makes the final decision on behalf of the builder.
"The builder will give me a better price if I don’t have a buyer broker." This appears to be dangerous territory for a builder who does this and I have never seen it, when they have a current offer to pay buyer brokers a commission. (Almost all do.) Can you imagine a builder wanting to go to court saying they discouraged a buyer from being represented? I am not an attorney, and cannot give legal advice, but I can’t imagine a builder wanting to place themselves in that position.
"If I use the builder’s lender I will get the best deal." Maybe yes, maybe no. Often builders will offer you an incentive for using a preferred lender. It is to your benefit to compare loans, terms, costs. Sometimes the benefit of using an outside lender outweighs the benefit of the incentive. Ask for good faith estimates and compare costs v. incentives. I can refer you to a good loan officer that you can contact to compare.
If you have to sell your current home to buy your new home, I will give you a great discount on the commission on the sale of your current home if you utilize my services in purchasing your new home.

Roy Johnson
My Website, for more information

303-875-1986
myhomecolorado@gmail.com


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