There are many Atlanta home buyers that buy a home in Atlanta without a buyer's agent or real estate agent that represents their interests. The buyers make a fatal mistake of going directly to the builder and buy directly from them. This is incrediby naive of them. And it is like having unprotected sex with a stranger! Not smart at all! The listing agent can only represent their principle the seller! The Atlanta home buyer's mistake? They thought that by going directly to the builder they could shave off the commission because they purchased without a buyers agent. That is mistake #1.
Another mistake is that the the builder developer will give the buyer if they close with their preferred lender: furniture up to 15K, closing costs up to $7500, a decorator allowance, a free exotic trip, and up to 100K off! Wow! How could a buyer pass this up? Who needs an agent? Just think, that if you could get all of the above without negotiating...what is wrong with the picture? Mistake #2.
The friendly Atlanta new homes agent asks you as the buyer that if you returned to purchase the home without your agent, they can give you a much better deal. Please keep in mind that after all they have to pay a big commission to them. If you buy an Atlanta new home without an agent, you could really get a sweet deal! Mistake #3.
If you buy our home, not only can we get you a great deal, but at the closing, we could give you cash back! That's Mistake # 4 (it is Illegal you could go to jail!)
The same friendly Atlanta new homes agent, asks you "Why are you wasting your money by doing a home inspection and paying all that money to a mediocre home inspector?" The builder is a really great guy, he's a Christian and can be trusted! And after all, this is a new home, and you are under a builders warranty! Mistake # 5 is often Fatal!
Wow, I could write a book on this! The truth is you are a sucker for buying a home without an experienced advocate representing your needs only! There is no free lunch! In spite of all the concessions the builder made for you, the home may just be a total loser and is still way overpriced! What happens if the builder goes bankrupt? What happens to your builder's warranty then? What happens when you find out the builders lender changes the loan agreement at the closing table and you pay a substantially higher interest rate? What happens when the subdivision goes into bankruptcy and you find out the hard way there is no pool or tennis nd there never will be, or that the builder is going to undercut your 250K home price and finish the rest of the subdivision with homes that are a $100K less in the 150's? I can tell you what will happen. You have just made thee most expensive mistake in your life that will take a decade to make right! Caveat Emptor. Let the "Buyer Beware!"
There are loads of foreclosures in today's market and the untold story is that many of them were sold to persons that could not afford to buy them. When the mortgage readjusts your monthly payment beyond your reach... a buyer agent may have assisted you in using other lenders and having them explain costs, and payments to you. There are many new homes subdivisions where the majority of homeowners are in foreclosure. A good Atlanta buyers agent may advise you not to buy a home from a particular subdivision, or may show you that there are much better bargains in resale homes. They may even have advised you, not to buy a home.
Don't make a costly mistake buying a home in Atlanta. Before you buy, buy with a Atlanta buyers agent that represents you alone.
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It is truly sad that Builders are being foreclosed on. However the reality is that many Builders get caught with large amounts of inventory when they do not pay attention to th market. Nothing goes up forever. The signs are usually apparent but often greed blocks your view.
In regards to unrepresented Buyer's and Seller's for that matter. In the 19 years that I have been selling real estate one fact remains constant. The worst stories bar none come from unrepresented individuals attempting to work with in a medium that requires more than just desire.
Downtown Portland Real Estate Broker~Herb Hamilton Wow isn't that so true? "The worst stories bar none come from unrepresented individuals attempting to work with in a medium that requires more than just desire." I feel you have a great insight!
SomeMost listen. Every home needs an inspection. I've worked for builders representing them on their specs and we always find overlooked items, like a nicked plumbing pipe in the laundry room, which could have caused a disaster if not found before they moved in.Keith & Robin Perry - REALTOR® -West Metro Atlanta Thanks! I went into a new home subdivision that has been sitting for a long time in Atlanta. I like the product but there are several areas of concern.
The on site agent is very upbeat that sales are strong, and almost sings every response back to you. (I had not identified myself as an agent because I am looking to see what is out there for my own needs!) So when he mentioned you better hurry things are realy hot, I asked then why to you have this big sign up for 5% to buyers agent? He almost lost it. However, reality shows a different story!
When I went back to the MLS to check the stats, only 2 had sold over the last few years, I assume the others that are occupied were rented, there was one pending sales, and there were loads of expired and withdrawns.
Jim,
Great post. A buyers agent needs to advise a client of their best options at the time they are considering a purchase. Not buying is sometimes a very good option. Excellent point!
Mike Lewis