Episode #13 Realtors for New Builds  

What's up, everybody? Welcome to the Fitness Realty Channel. My name is TJ McLelland, and I'm the broker. I'm super excited to share all the things we have planned with you. So sit back, strap in, and let's have some fun!

What's about you good-looking people? This is going to be one of my favorite episodes. This is all about why you should use a realtor for a new build. This is one of those topics that there are a lot of people that feel like they're going to save money by not taking a realtor into that situation because, hey, the builder's agent or the agent on site made them feel really comfortable. And made them really feel like they were in their corner when in reality, that builder's agent works for the builder. 

So I want you to really kind of pay attention and make sure that you understand that agents on site when you go to see a brand new home or a model house, those agents are contractually bound to represent the builder. So they're going to do their best to tell you everything about the home that is a material fact, but they're not going to tell you all the things that maybe would make it so that you would have the edge over the builder during that contract because they work for the builder. 

So this is kind of like going onto a car lot and having one of the representatives walk up to you, our sales Rep. Walk up to you that wants to sell you a car from that dealership. That salesperson works for the dealership. They're working to get the best deal for the dealership. Of course, salespeople aren't really trying to take advantage of you, but they do have a party that they are affiliated with that they are working for. 

And our contractually bound to try to get better interest for the party that they're contractually bound to. So I want you to know that walking into a model home, the builder's agent is always going to be friendly that will really want to try to get you to buy one of those homes, but they really work for the builder. So never feel like. 

Well, I hope I won't say never, but I want you to know that you can always take a buyer's agent as a representation with you to a model home and during the contract for a new build. So a couple of key features here if you do take an agent with you to go into a new build scenario or with you when you're walking a model home. 

The first advantage is the builder's agent is now going to give you all the in's and outs and specifics about the contracts that you may be looking to get into because hopefully, your realtor that you took with you is asking questions about earnest money, construction and posit deadlines, timelines if you have to sell your house before you can actually get into a contract with a new build, all sorts of stuff.  Our agents on our staff walk through a training video all about new builds with me so that they can understand what questions they need to be asking, new build agents or builders. And so having somebody that's from our company goes into a new build with you puts you ahead of the curve so that you know all the questions that you really supposed to be. Thinking about during this contract, instead of getting blindsided by all the new hype that a new home kind of builds.

So something here that I like to point out is, along with the new hype that I just kind of hit on, when you walk into a new build, and you're in a model home, you get this kind of sense of euphoria. That comes around just by being in the brand new house, the new show quality, the way it's set up, the way it is staged. Sometimes that can just put you into a mood that's like, yeah, we don't care what we're signing, we're going to buy today.  

So I love to have all of my clients take me or one of my agents on our staff with you to go to a new build because I'm not in a euphoric state because I'm not buying a house right then you guys are. You're there to get hyped, right? Learn that this is going to be your new dream home. And I've seen it all the time. I take my clients into the new build. They fall in love with it. They start to just say, how can we sign? We just don't even care. Where do we sign up and things like that?

And so I've seen it all the time. I've taken a client in many, many times in the new builds, and it happens virtually every single time. They just get in a euphoric state, like I said. And they're like. This house is our dream home. Where do we sign? We don't even care about the cost, and I'm like, hold up. There are a lot of questions that we need to make sure we understand. Before I'm going to let you sign this contract and justice, be Willy nilly with your own finances.

And so I love to be there and be that kind of advocate so that you can just stay euphoric and have fun and really enjoy and get the whole feeling about that being your new dream home. But also, I'm there to make sure that you don't get fleeced or something by the builder's agent or by the builder.

So that kind of, in a nutshell, is what I love to have about an agent helping you to buy a new build. There are a lot of nuances with that as well, where you have contract deadlines that you might not understand, where a buyers agent like myself or somebody from my staff can really help you out. There are a lot of things with earnest money or construction deposits where you might not understand. Like when is your money going hard, or when is it on the line, or when is it that it's too far along for us to back out and we'll lose all our money?

It's stuff like that that I love to make sure that I know what they are, and then I help you understand. In reality, I help you understand where your money is at, when it's on the line, when it's tide up, when you're going to lose it if you want to back out of the contract, all sorts of those nuances so that you make sure that you understand the real weight of that contract that you're signing. We love the new build process to feel really exciting, so that's why I love to actually share with that. With you, one of my favorite parts is going to the design center.

So going to the design center with my clients when we're getting a new build that has some aspect where we can actually design parts of it is one of my favorite things to do. I love to hang out with you, learn more about your qualities, and learn about what colors just really get you going. Learn about what insight you want to put into your home. So much of that is just a great time for me. And then I'm also there if you have questions about the resale value sell ability later, if you're going to put in some crazy color, if you're like, hey, we're going to do this like, purple tile, OK, cool.

The purple tile might be what you love, but it's not going to be what everyone loves, so I love to be there for questions like that. I typically just hang around and make sure you have a water or a diet doctor pepper or something. So most of it, I'm just hanging out and having a good time with you and learning about what you want in your home. But I do get a lot of questions about cell ability factors for in the future. Because typically, the new builds that I've sold with my clients that's not there forever House.

And so we do have aspects where they want to make sure that if they spend the money in upgrades, is it good money that they're putting into the home or is it money that's going to be just wasted? And so I love to help point in the direction of that. Two factors there really quick. If you're going to spend money and upgrade, spend it in the kitchen and in the bathrooms pretty much everywhere else. It's not wasted, but it's not going to get you the wow factors. I try to tell everybody if you have design features that can't be fixed or changed later on, like structural things, yeah, get those done, of course.

But if you're going to spend money on upgrades, make sure you do it in the kitchen and bathrooms first because you'll make your money back a lot faster in those. But as always, while I'm there with my clients, if it's something that just really jives with them and they really want that, yeah, I mean, I'm not going to say no to that. Like, go ahead and get it if it's going to make you happy. That's up to you guys.

Anyway, I love that part about the new build processes, the design center. So that's one of the key features that I like to bring to the table is offering opinions and suggestions about sell ability after the fact. When you're five years down, and you really want to like sell the home or upgrade or whatever, there's a lot of things that. Come into play with that. OK. Let's shift gears a little bit further into the contract, let's say during some inspection process during the four-way and then the final walkthrough.

So having a representative with you like a buyer’s agent or like me or somebody from my staff during a new build, there are a lot of inspections. There's a lot of time for you to actually walk the home and look and see how it's going. The thing that I like to bring to the table is, as a realtor, I know what the builder signed for the contracts, usually really pretty in depth.

And so I like to say that during those contract processes if the builder hasn't upheld their end of the bargain with maybe outlets or maybe we had some changes on the contract or the architectural plans or something like that, we can help sink some teeth into the builder to get it accomplished. Without a representative, you're always working with the builder's agent, and like I said, the builder's agent works for the builder.

So sometimes you lose your voice against that builder because you just have nobody that can kind of stand in the arena with you and go to bat for you. So during those inspection processes, I'll give you a personal, for instance, I've had many, many times where I've say my clients some money during that, but this instance is probably the most expensive one or the most expensive one that I've ever saved my clients.

So I had some clients, I got a new build. The new build was in the upper end for the average home price at that time. The home was beautiful. We went to do the final walkthrough, and on the oven hood, there was a small dent in the hood. I happened to walk by, saw it out of the corner of my eye. I was like, hey, there's a small dent in this hood. Can we get that fixed, repaired, or whatever? It's made out of aluminum, so there's no way to repair it. That's something they just have to scrap and put a new one up.

The builder was like, hey, that's something we're not going to do. And I said, well, contractually, we need a new hood because you are going to provide new items for this home, and it's part of the home that you're providing. Anyway, it was a $4000 hood. The builder didn't want to eat 4 grand in cost because of a small dent, but I didn't want my clients to live with something that they were going to see day in, day out, forever.

So I put some pressure on the builder. They eventually caved. They said yeah, we'll put up a new hood, so they put in a new hood at about four grand. So they had to eat that foreground cost. But then my clients were super excited, so they got the home that they wanted. They didn't have that little dent in there that would remind them of how the builder just wanted to not do something that they were contractually obligated to do.

And so everybody one, however, I feel like if I wasn't there in that experience. The builder's agent may have just said, hey, that's something we can't do anything about. You're just going to have to live with it. Or hey, here's a $100 Home Depot card and justice by him to close their mouths or for silence.

So I love to offer that insight of me walking around the home during a four-way inspection or regular insect or final walkthrough inspections because, like I said, I don't have that euphoric state. When you're like, hey, we're about to close on this house, we're so excited. We've got movers. We're coming in, we've got family, we've got parties planned, we've got Christmas planned or whatever. There's so much stuff that you guys are like getting excited about.

And whereas me, I'm like, Yep, we're about to close on this house. It's going to be great. But hey, here's XYZ things that are still broken and need to be fixed, and then I put some pressure on the builder to get those done before closing because I'm not in a euphoric state. So anyway, I know I've said that a bunch of times where I want you guys to be excited, I want you to be happy, I want you to really just have a great time with a new build, but I also want you to be protected, so take an agent with you.

It will usually cost you nothing because the sellers or the builders were already going to pay a buyer's agent. Either they're going to pay their seller's agent a little bit more if you took nobody, or they were going to pay a buyer’s agent some portion of the Commission, so you might as well just take a representation with you and make sure somebody is in your back pocket while you're just getting a new build and being excited and crazy and justice having a good time.

Well, this has been all about taking an agent with you during a new build. I love the new build process. We've sold a ton of new homes, but I always want to make sure my clients are represented. So I will always be an advocate for you to take somebody with you so that you don't have to feel like you're getting freight trained by the seller's agent or the builder because they will have a really strong upper hand, and sometimes they can put the pressure on you, but if you have somebody that's in your back pocket and knows the contract, they can really fight back and help you have a transaction that's really smooth. And that's all about new builds. I love you guys, and we'll see you later!

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