NAVIGATING NEW CONSTRUCTION DEVELOPMENTS What you don’t know could cost you #3
Exploring new construction developments can be exciting, but it’s crucial to understand how your actions can impact our agency relationship, especially regarding representation and commission. Here’s what you need to know:
First Visit Implications: Many new construction builders have specific rules about buyer representation. If you visit a new development without me or without having me register you ahead of time, the builder may refuse to acknowledge me as your agent later. This is particularly critical on your first visit to a development. Builder's Policies on Agent Commission: Builders often only pay a commission to a buyer's agent if the agent is present or has registered the buyer on their first visit to the site. If this protocol isn't followed, the builder might argue that they were the procuring cause of the sale and therefore refuse to pay a commission to the buyer's agent. Your Potential Financial Responsibility: If the builder denies compensating me due to a breach in their policies (such as visiting without me or not being registered), you could find yourself in a position where you might have to pay for my services out of your pocket. This situation can be avoided by ensuring proper protocol is followed. Importance of Agent Presence or Registration: To ensure that I can represent you and be compensated by the builder, it’s vital that either I accompany you on your first visit to a new construction site or I register you with the development before your visit. This process is a simple but crucial step in maintaining your right to representation.
Advantages of Having Agent Representation: With me as your agent in a new construction purchase, you benefit from professional negotiation, insights into the building process, and someone to advocate for your interests. My presence can be invaluable in navigating contracts, upgrade choices, and ensuring you’re making the right choices to maximize your ROI at resale. Communicating with Developers: If you come across a new development that interests you, let me know before you plan a visit. I’ll take the necessary steps to register you or arrange to accompany you, ensuring that your rights to representation and my role as your agent are secured. In the excitement of exploring new construction homes, it’s easy to overlook the nuances of agent representation and commission policies. By keeping me informed and involved from the beginning, we can avoid any potential issues with builders and ensure that you receive the full benefit of my expertise and services, without any unexpected financial obligations on your part. Remember, my goal is to support you through every step of your home-buying journey, including navigating the complexities of new construction properties.
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