When I sold new Denver homes for some of the best Denver new home builders, I would often work directly with Buyers who didn’t have Realtors. That worked great for me and the Builder. But not always so great for the poor Buyer. You see my only legal “representation” was to the Builder. Buyers liked me and I tried to be ethical. But, when it came to conflict, I had to represent the Builder. That’s just the way the system works. In Denver, new home buyers could be represented by a Realtor for free but many just did it on their own.
Sold Denver New Homes For Builders
I spent almost 15 years working on site for luxury home builders in and around Denver. When you are working for a Denver home builder, you are looking out for the interest of that builder at all times because the minute you stop will be the minute you have ended that career. For the most part, builders try to operate with integrity, while still trying to make a profit or produce the numbers that shareholders and/or Wall Street are targeting.
The issue with this philosophy and approach is that when the market changes a bit, materials or labor are in short supply, financing guidelines change, a lawsuit occurs, etc., integrity becomes very hard to maintain!
Many folks just don’t understand the fine print of a new home builder contract even after they have signed on the dotted line. In most resale, real estate transactions, there is a state-approved real estate contract in place. But, builders and developers are allowed to write their own contracts with the help of powerful real estate attorneys. Those contracts are written to leave the buyer with little protection should a dispute, conflict or even life-changing event arise.
Most buyers are also unaware of the serious implications that are involved. They can find themselves losing between $20,000 to upwards of $70,000 in earnest money and deposits without realizing their liability. As a matter of fact, many builder contracts have a clause providing for “specific performance”. That means that the new home builder basically has the right to come after the customer and make them buy even when they don’t want to and just plain can no longer buy.
No Cost to Use a Realtor
Almost all builders understand the value for a Realtor to protect the customer’s legal position and already have a commission built into the base price. It is ethically wrong for a builder to take that money and allocate it to their bottom line or provide an incentive not to use a Realtor. Consumers won this right with the Builder Realty Counsel back in the 1990’s. When I worked on site, I can’t think of a year where at least 50% of the buyers that came in the door were were represented by a Realtor!
With that being said, I found the customers that were represented by a Realtor had a much more pleasant and rewarding experience at the end of the day. Realtors made my job easier most of the time. But, they would often also be effective negotiators for their clients. It wasn’t job to explain when a lower offer might work with with the builder. But, good Realtors knew the market and what other builders were negotiating at any particular time.
A good Realtor can also help ease the stresses of building a Denver new home. They can explain the difference and benefits or downfalls in materials used by different new home builders. They can easily explain the process and the 50+ page contract written for attorneys by other attorneys. They can help moderate and negotiate when times get tough during the building process. And, they can monitor the transaction as it progresses on behalf of a buyer!
The bottom line is that anyone who just walks into a new home sales office to buy a new home without a Realtor is crazy. Don’t play around to negotiate a huge financial transaction by yourself. Don’t put your fortune into the hands of the “nice guy” who represents the Builder. You can be effectively represented by a good Realtor and there is no cost to you.
Learn More About Buying Denver New Homes
I’ve been on both sides the fence. Now, I represent buyers who purchase Denver new homes. Please let me explain this process to you and answer any questions you may have. I can also send you a list of the best Denver new home builders. Just use the form below.