- The face of a builder’s product is the Agent they hire. New construction is not just another pretty face on the block, nor is your Agent. Intelligence and skilfulness are what buyers look for when purchasing from a builder. Unfortunately, some builders are bruised, on account of hiring listing agents that demonstrate poor judgment and do not perform their responsibilities. This is visible to clients and Agents. I have encountered many unimaginable situations and as a result am skeptical about bringing clients to a builder where professionalism is compromised by the Agent. Builders should vie for broad business experience in this versatile market. Remember, the client comes first, not your listing Agents.
- Deed Restrictions: When you make a sale into a community that has deed restrictions – (when typically the builder is the “Acting Board” until the community exceeds a ownership percentage), you must make sure your buyers are aware. Typically, docs are passed on to the buyer – within contract terms- by the agent representing them or the builder, if there is no buyer representation. It is paramount that all parties handling the buyers make aware of these docs and the importance of them. Some buyers do not actually read their restrictions. It is important that the buyers are aware of the covenants because they must be willing to live by them. Some people do not pay attention to the Deed of Restrictions and then break the bylaws after they move in. Please builders, it’s your agents job to educate your buyers. If you are not, you are only hurting the parties you are selling.
- What happens when an appraisal comes in lower than the sales price of the contract? First, when you list a home, make sure you know the comps and are using the right ones before you price it. If it is priced correctly, you should not have a problem when you receive an offer in the market today – most people are not willing to pay full price. The offer should be supportive of the comps. Remember, if both agents interpret comps the same, then there should be an agreement with price. If not, then you could run into a problem of buying a home where the appraisal does not support the price. This is happening in today’s market, so be prepared to go back to negotiations. Most people are not willing pay over appraised value – unless market conditions are extremely competitive. If a buyer does pay over appraised value, their LTV needs to be within means of the sales price.
This is not legal advice.