Please register to participate in our discussions with 2 million other members - it's free and quick! Some forums can only be seen by registered members. After you create your account, you'll be able to customize options and access all our 15,000 new posts/day with fewer ads.
Ah, but do you all realize that in some (maybe many, I don't know) locations the buyers don't write the contracts for new construction? The sellers write these in some (again, perhaps many) locations!
And let me tell you - there is no extra space left on the contract for seller demands!
I bought a new construction house in Arizona, and the contract was very similiar to the one you signed when you got your cell phone/blackberry. It was handed to me, and they said sign it. I could sign it and buy the house or I could walk away. Marking out lines that I disagreed with wasn't an option.
Of course, this was in 2004/2005 and the builders actually had to have lotteries because so many more people wanted to buy than they had lots available for.
SC, I don't think Austin-Willy is suggesting any interference with with the contractual agreement between seller and sellers agents.
He is suggesting that the buyers agent add a clause stating the seller (personally) will pay x% to the buyers agent as part of the deal. Then allowing the seller and sellers agent to duke it out over what seller pays that agent.
It is a very interesting way to "deal" with the problem, and personally I would love to see it done just to stick to that sneaky site agent.
but practically, i think it could create all kinds of problems (some I probably don't even know) and could potentially create a contract that isn't in the best interest of my client.... breaking my fiduciary responsibility.
Shelly
Shelly - thank you for your input. I do understand what he is suggesting, but such an act seems to be an indirect attempt to modify the listing broker's agreement (forcing the broker to compensate another broker). We all know that the seller will turn to the listing broker to insist that he/she compensate the other agent. If it is determined to be such, then a Realtor could be in violation of article 16-16. While we may agree or disagree on its merits, it is part of the code -- and this buyer should be aware of its ramifications.
Ah, but do you all realize that in some (maybe many, I don't know) locations the buyers don't write the contracts for new construction? The sellers write these in some (again, perhaps many) locations!
And let me tell you - there is no extra space left on the contract for seller demands!
I bought a new construction house in Arizona, and the contract was very similiar to the one you signed when you got your cell phone/blackberry. It was handed to me, and they said sign it. I could sign it and buy the house or I could walk away. Marking out lines that I disagreed with wasn't an option.
Of course, this was in 2004/2005 and the builders actually had to have lotteries because so many more people wanted to buy than they had lots available for.
As an attorney who specialized in contracts, I have no problem with my clients agreeing to the fine print in a cell phone contract. The downside simply is not very bad. A purchase contract for a home worth hundreds of thousands of dollars is very different.
I have negotiated a number of builder's contracts, and while they put up a strong front, they are in the business of selling houses. Unless there are buyers lined up around the block, if reasonable requests are made, they would just as soon agree and sell the house to a buyer in hand than send you away and cross their fingers. Being too afraid to ask for changes is a sign of an emotional attachment to the home and is not smart.
Being too afraid to ask for changes is a sign of an emotional attachment to the home and is not smart.
AAAAHHHHH, and therein lies the problem of most negotiations. I have no problem being a tough negotiator IF my client can hang in there, and the risk is you may not get the house. Where is your threshold, client? Is this an emotional decision (as most home purchases are) or is this a business decision.
That is why my clients and I have a discussion about BATNA (best alternative to a negotiated agreement).
Yes, stupid I know. I wish I could turn back time, read it, then not sign it. But since I can't, I need some advice.
I made a verbal agreement with a friend realtor to use his services, and then visited a sales office for a new development I saw online without him. At the sales office, I stated that I had someone in mind as my realtor. They said that was fine, and went over some listings with me.
Prior to showing the properties, the agent gave me some paperwork to sign, stating she would be unable to show anything unless I signed. I did not read it. I just signed. It was a buyer's rep agreement that said she was acting as an intermediary. The contract period is from that day through the end of this year. There is a protection period for 90 days after the contract expires with a clause saying that the protection period is void if I entered into an agreement with another realtor.
The problem is, there is a house she showed me that I want to buy, and I do not want to wait until the protection period is over to make an offer. While the agent at the sales office took a few hours to show me a couple of properties, my realtor has spent the last month working with me. How do I make sure he gets the commission?
I'm curious...what is working as an intermediary and were you presented Working with Agents prior to signing the contract?
I have negotiated a number of builder's contracts, and while they put up a strong front, they are in the business of selling houses. Unless there are buyers lined up around the block, if reasonable requests are made, they would just as soon agree and sell the house to a buyer in hand than send you away and cross their fingers.
At the time I bought my new house there were buyers lined up around the block (literally) on days they did a lottery. I once saw about 35 potential homeowners waiting to see who would purchase the four or five homes to be lotteried off.
The people first drawn fromt he lottery were given the opportunity to sign a sales agreement (purchase contract) on the spot. If you did not agree to the terms without question, they would draw another number and give someone else the option to buy.
Good negotiation position? Not for buyers!. Here's what people sacrificed:
- Most contracts eliminated trial by jury and replaced with mandatory arbitration by experts. Who was considered an expert? Other homebuilders. So guess who wins 90% of the time?
- Right to have your own home inspector inspect the house prior to closing. (This were new construction homes that had not been built.)
- Right to choose your own mortgage company. Not precisely "eliminated" but heavily restricted. I was told no, my contract would be void unless I used the builer's mortgage agent.
- Right to choose your own telephone and cable provider. Not real common, but some builders signed agreements that required you use the builder's choice for utilities forever. They did this through deed restrictions and convenants that basically meant the utilities were provided through the HOA and part of the monthly dues payments.
AAAAHHHHH, and therein lies the problem of most negotiations. I have no problem being a tough negotiator IF my client can hang in there, and the risk is you may not get the house. Where is your threshold, client? Is this an emotional decision (as most home purchases are) or is this a business decision.
That is why my clients and I have a discussion about BATNA (best alternative to a negotiated agreement).
Shelly
I am emotionally attached to the house. I completely fell in love with it when I saw it and am unable to find one that's better. However, because I am using a friend as a realtor, there is no way that I am going to buy it if he doesn't get the commission. Per my agreement, I believe I can make an offer on it on Jan 1st. I will prob wait until then if I cannot get a release. I would just rather not.
I'm curious...what is working as an intermediary and were you presented Working with Agents prior to signing the contract?
If I understand correctly, acting as an intermediary is like acting as the middle person in the transaction. She is supposed to be a neutral party to both the seller and buyer in negotiating the sale.
And yes, I was presented with Working with Agents prior to signing. He handed it to me with the agreement. And like an idiot, I did not read that either.
I'm happy to say that my office STRONGLY encourages reading through an agreement with a prospective client. This way there are NO misunderstandings. When a realtor (or anyone else for that matter) tries to pressure you and or rush through IMPORTANT paperwork - it's a really good idea to step back. I know this is easier said than done - BUT - the repercussions can be painful!! Let's see - do you think that builder would give up a sale to stand up for an agent that misled you? Oh - I hope not!!! Please remember that YOUR agent will be caring for YOUR best interests going forward and you need to be represented by someone you TRUST!! I hope to hear this works itself out quickly and painlessly - let us know!! Take care!!!
Please register to post and access all features of our very popular forum. It is free and quick. Over $68,000 in prizes has already been given out to active posters on our forum. Additional giveaways are planned.
Detailed information about all U.S. cities, counties, and zip codes on our site: City-data.com.
Please register to participate in our discussions with 2 million other members - it's free and quick! Some forums can only be seen by registered members. After you create your account, you'll be able to customize options and access all our 15,000 new posts/day with fewer ads.
