Today, I sat down with a couple who is looking to purchase a Franklin TN new construction home. We did what so many of these builders do--we sat down and outlined all the things my clients want in their new home.
When we were finished, the couple was in sticker shock. As is so often the case, the prices on upgrades were outrageous.
My clients and I stepped outside to talk. They felt strongly that our first offer should be to ask for everything they outlined. We talked about the recent comparables in the neighborhood and what we thought was a reasonable offer.
My clients left and asked that I begin the negotiating process.
Many buyers don't realize they can make an offer on new construction just as they would on any existing home. Some builders are more open to this than others. Having worked with this builder before, I knew he would be willing to negotiate.
When I told the on-site agent what my clients had decided to offer on this home. She said, "I can't take that offer to the builder." I asked, "Why not?". After all, Tennessee law requires agents present all offers to sellers, no matter how low they are.
She knew I had her and she didn't like it. You could see that she was very unhappy that she was required to write up an offer that she didn't believe would be accepted. I would have been happy to write the offer. However, the builder has his own contract that the on-site agent must complete. That's their choice, not mine.
Had these buyers gone in without representation, the on-site agent would have told them that the offer was unacceptable and convinced them to come up in price. She knew that wasn't going to happen with me because I know the law.
The on-site agent agreed to write up the offer tomorrow and call us when it was ready for signatures. We'll then go in, review the offer to make sure it includes all we requested and my clients will sign. The offer will be submitted to the builder's main office.
The rest of the negotiations will be between the builder's main office and myself. In the meantime, I have instructed my buyers not to go anywhere near the model home or to talk with the on-site agent. All communication must come through me or risk showing our hand.
Fortunately, these buyers have options should this negotiation not go the way they hope. The best thing buyers can do is hire a buyer's agent to represent them through the process. Even if, the home is Franklin TN new construction.
Is the builder negotiable on a Franklin TN new construction home? You won't know until you try.
TW Realty Group
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