I have heard more than one person tell me they think working with the developer’s agent, whether in a gated golf course community or other new development, is financially beneficial. In our experience, developers factor buyer’s agency commission into their list prices and do not provide discounts if a buyer is unrepresented. Armed with this information, a buyer should feel assured that they will not pay more if they are represented. But can being unrepresented come with hidden costs and risks?
Advocating for Our Clients
We have represented buyers in all of Park City’s golf course communities and many other local developments. When things go sideways with the developer or builder, as they often can, either during or after the transaction, is the agent employed by the developer going to go to bat for you?
Here are a few recent examples of how we were able to advocate for our buyers.
Negotiated Credit for Developer Delays
One client purchased new construction which was supposed to be complete in 12 months. She planned to move into the property, and when we found out completion was delayed for over 4 months, I worked closely with the developer’s listing agent to create a penalty for each additional month the closing was delayed.
We ended up closing 8 months late and my client received a $30,000 credit from the seller. During the final walk-through, there were several punch list items that needed to be addressed. We ensured that these items were documented and that the builder was accountable to the Buyer.
Leverage in Warranty Requests
One client purchased new construction that had a few issues covered by the builder’s warranty after closing. Each time our client contacted the warranty department, their request was ignored. We intervened with the listing agent each time this happened and she expedited a response.
Why did we get an expedited response? A single buyer may not have leverage with a developer, but a successful team like ours, which has the potential to bring many more buyers into the development, has more leverage.
Correcting Builder Mistakes
One client purchased new construction “to be built.” The client selected her finishes from the builder’s showroom. Because the client was out of town, we sent her photos of different phases of the build job. The client noticed that the builder made several mistakes, including changing structural items and installing incorrect finishes that she had chosen. We were able to advocate with the builder and get those important selections corrected.
Whether we are representing buyers or developers, we believe a good buyer’s agent is an important advocate when purchasing new construction.