Who is on your side when you build a house?

 

Did you know that when you buy a house from a builder in the Lake Norman or greater Charlotte area of North Carolina, the builder’s sales representative (sometimes a real estate agent) works for the builder and not for you. They represent the builder in their dealings with you. In North Carolina the builders agent must promote the builders best interest, be loyal to the builder, provide the builder with all material facts that could influence the builder’s decisions.  So be careful how much you tell the builders sales agent, it could hurt you later in negotiations.  The builders agent must not give you any confidential information about the builder without the builder’s permission.

 

So, who represents you? Did you know that the builders pay the real estate commission to the buyers agent. That said, most informed home buyers want someone to represent them. Buyers also want someone to be loyal to them and be on their side during negotiations.

 

Most builders use their own purchase contract, not the standard offer to purchase and contract that was written by the NC Bar Association. All too many times I have heard an unrepresented home buyer say the builder agreed to make the purchase of the new home contingent upon selling their house - only to be told when the new house was almost completed that was not in writing and would not be honored and they would be forced to complete the sale. Sadly, that is true. North Carolina only recognizes written real estate contracts. Oral contracts are not enforceable.

 

A good buyer’s agent should always give you a market analysis before you buy a home. If you do not have a buyer’s agent representing you, how do you know you are not overpaying for the home? In building a home, you can get exactly what you want – at a price. That is why a market analysis prepared by your agent becomes very important. Informed decisions are always best. Maybe you want what you want, even if it means you are overpaying. That can become acceptable as long as you are knowledgable and make your decisions based on fact.

 

An experienced Realtor knows from prior dealings what the builders how much they will actually be willing to “give away”. I bet that is knowledge and experience that you would like to tap into.

 

Another important aspect of having your own real estate agent is “local features” - things people at Lake Norman, Davidson, Huntersville, Cornelius and Mooresville like to find in the home in which they live.. If you builder is trying to just get you to spend more money on upgrades – watch out. Some upgrades are definitely worth it, either for your personal enjoyment or the fact that it really does add value. Adding value to a house may not be the same for the Lake Norman area as it is in the NorthEast or West. For example, a kitchen counter standard in the Lake Norman is granite. Local buyers expect granite in most price ranges. Another example is the master bath. Lake Norman folks love a luxurious master bath. Homes that sell in Huntersvile, Davidson, Cornelius, and Mooresville have certain features that help them sell for the shortest amount of time for the most money. Your buyer’s agent can help you with that.

 

Terri Latta, CRS,GRI,ABR