What Builder's Don't Tell You Can Cost You!

In Michigan, if you buy from a builders representative it is a good chance these are not licensed Realtors at all. The company selling the homes many very well have a real estate license but the "representative or counselor that you are discussing the home purchase with may not be a Realtor.

Buyers many times think they will get the "best deal" by negotiating directly with the builders representative.

Let me share the experience of a couple that I met. They had sold their home after living there 15 years. The kids have moved out so they wanted to down size. They decided to check out new homes. They had never owned a new home so they thought they would treat themselves. They started with an real estate agent who was a friend and new to the business. Not an uncommon choice.

As they looked and met with builders the agent kept steering the buyers to more expensive homes than they wanted to purchase. So they soon parted company. Which anyone would have done. They decided to go it alone and negotiate with the builder directly.

They found a home....upon going through the home it fit them perfectly. They made the offer and with that they went through the home again before close looking for defects and problems that the builder would fix.

The representative said sure we'll provide screen for all the windows, oh sure we'll put in towel bars, of course we'll fix that crack. You want eves put on the house, sure we'll include those at no extra cost.

As Mr. and Mrs. Experienced buyer (let's call them) left the walk through meeting with the representative they felt pretty good. The builder was very accommodating and they found their last home before retirement.

The close came without a hitch. They started calling after moving in when no screens came, the cracks were not fixed and no one had made an appointment to install the eves and downspouts on the house.

They were then told it wasn't in writing the home office for the builder had no idea what they were talking about. This should have been handled in writing before close. It's too late but the build could make some concessions on price if they would like some of the repairs and installations done.

The builder would send over a contractor to give them a quote. As you might guess they were not happy. The truth is ethics is not what representatives are bound by. They have a moral obligation but it is driver by their own character. Licensed real estate agents that are part of the National Association of Realtors are governed by a code of ethics. We have bad apples too but with the controls and guidelines we have methods of dealing with bad actors.

In this case the buyers had no recourse. If they had used a buyer's agent to represent them they could have saved this situation from happening.

Hope this help you understand you can have professional representation and still get a good deal while being protected with your concerning covered in writing.

Remember there are many reputable builders...get it in writing just the same.