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Dickens-Mitchener & Associates: Why Have a Realtor?

Monday, November 24, 2008

Why Have a Realtor?

The recent article titled, "Before you sign..." in the Charlotte Observer Home & Garden section fails to list one very important tip for buyers of new construction - get a Realtor.

Buyers need their own representation when deciding to purchase a new home. It may make sense to have an unbiased real estate attorney look over a builder's contract, but there are many things an attorney does not do. Here is a list of things that an experienced Realtor will do to help a buyer (or seller).

1. A good Realtor will go over the contract with you and point out details that you may not see. Most full time agents will handle 20 or more transactions per year. That means we spend a lot of time looking at and advising buyers and sellers on how to make sure that a contract is fair.


2. We help negotiate terms. A Realtor will do research to see what has sold in the development or neighborhood and how those deals stack up against yours. The negotiation is not just about price but also includes closing dates, closing attorneys to use, walk-through punch lists, escrow amounts, upgrades and many other details.


3. Realtors network with one another and often times know the reputations of certain builders. We call agents who have worked with buyers in a community to get a history of how customers are treated and what kind of quality issues have arisen with the builder or developer.


4. Realtors will recommend an independent inspection and help a buyer choose one that specializes in new construction.


5. We get respect from most builders and that translates into a better, more equitable transaction. Builders want to have a good reputation with Realtors since we bring them business. News travels fast in our business, especially bad news!

If you are a potential buyer, remember the words caveat emptor or "let the buyer beware". This means that a buyer needs to know what they are doing when they sign an agreement. It does not mean that a builder/seller can legally misrepresent or trick a buyer but it does put the burden on the buyer to do diligence in understanding a transaction.

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