Hi everyone. This is your Tampa Bay Realtor Lance Mohr. In this video I want
to talk about some problems that people have with builders. What problems buyers
may have with builders. what I need to do is I need to go over a situation of a
client that we've been working with my buyer's agent and I and sort of some
things that came up that you know maybe could have been hand a little bit a
little bit better up front because what she had happened was what most people
would consider borderline catastrophic on what was going on so I want to go
over this and give you some tips and advice so if you're buying a home what
you need to do
all right so I'll start off and let me say this the lady our client is an
absolutely wonderful person she's really a pleasure to work with but I'll give
you the situation and sort of tell you where things could have maybe been in a
little bit could have happened a little bit
different so what happened is she was watching my youtube videos she wanted to
work with me but I was out of town so I referred her to one of my buyers agents
who's really really good buyer's agent he's worked with me for years he knows a
lot of the builders and so they went out and they looked at home she fell in love
with a home that she absolutely loved and she put the contract on it but she
couldn't use the lenders financing company that they had because she had
credit issues in the past and they just couldn't give her the financing and she
ended up getting financing through another company so the flex money that
the Builder was going to be given her for use in their mortgage company we got
him to agree to let her still have that money even though she was going to use
her own mortgage company so then what happened she ended bought the home
everything was going great when she went into the design center she really spent
a lot of money and you have to get what you want when you're buying a new home
but you have to be careful because a home has to appraise and if you look at
Builders contracts I don't want to speak for builders but pretty much every
builder contract is one-sided in every builder contracts gonna say they don't
need to lower the price if it comes in you're gonna be responsible for the
yester money and if you don't have it oh well so that's exactly what ended up
happening we're we're within two weeks from the from the home closing the
appraisal came in at 390 the home was valued at 405 she did not have the money
to pay it she just didn't have it so really the contract either would have
had to been cancelled but then she was really concerned about her earnest money
that she put upfront and she was also very concerned about all the money she
put upfront for all these upgrades she got so there's some concern she's
getting really stressed out not only that where's she gonna live in two weeks
so we had we had and then we had to go to a builder and
trying to get the Builder to lower their home $15,000 because a buyer put in too
much earnest money that's like renegotiating the contract
after you already made the contract but that's what we had to do and that's like
sort of getting blood from a cactus so the problem was is originally when she
went to her Wender my buyer's agent might suggested that she talked to our
lender at least get a second opinion and when I say my lender Jeff Hoffman is
really good I mean he's great he's been in the business for years
if he can't do something he'll tell you he'll be upfront with you if he's not
the best solution so we really really wish was she would have went with him
and I understand if someone's committed to their own lender and that's perfectly
fine and I get that the buyers the boss
they're the consumer they need to do it's fair but at least if you're gonna
hire a real estate agent take advice from your adviser talk to your real
estate agent so what happened is we were going back and forth with the with the
Builder and we're talking with the lender I asked to San send over a copy
of the Good Faith Estimate and it I mean it was just unbelievable
the loan origination fee was 2.75 there were a ton of other fees I sent it over
to my lender Jeff had him look at it he said he almost threw up looking out he
couldn't believe what she was getting hit with and he couldn't she couldn't
use him because it was two weeks by now it was probably 10 days to closing so
that was one of the problems she could have really saved a lot of money is she
listened to us and again take what I say with a grain of salt so and all I'm
saying is just if you're hiring a real estate agent hire someone who you
respect and then listen to what they have to say a long story short I had to
pull out a trump card that I basically don't generally like pulling out but
business is business and we were going what ended up happening isn't going to
the sales manager and the sales manager actually was having a conversation with
the vice president not one of the vice presidents but the
vice president of the company it went that high and I just simply let them
know over the last three months I've sold about two million dollars of their
product which I told them they could do the math two million dollars at probably
a 20% net profit margin and I have more homes in the pipeline with the company
so you know I had to do that good thing is they ended up lower in the price but
I'll tell you everybody was completely stressed out I mean that the buyer was
completely stressed out my buyer's agent was stressed out I was stressed out I
can imagine even the lender was stressed out the Builder rep did all the work and
he was a little frustrated on everything the Builder was definitely stressed out
because he had to lower the price and they did a lower the price but so what
I'm trying to say here is and I'll say it again take a real estate agent you
like listen to them you don't have to do what they say they're gonna do what they
want you to do like I tell everybody if you know if you're getting a home get it
inspected people don't have to do that but definitely think about it because
I've been in the business for so many years over 20 years sold hundreds upon
hundreds upon hundreds of new homes and no the new homes and the pre-owned
market and the sales market extremely well so no matter where you're at or
you're watching this video take an agent that you address will listen to them you
don't have to do everything they say but at least keep it as an option if they
say do this think about it they say call their lender I would call their lender
doesn't mean you have to use their lender so anyhow I hope this helps you
this is a real-life situation I generally don't like giving these in
videos but sometimes if I think it's really gonna help people then I'll do it
that's why I did this if you do like this video give me a thumbs up if you
have any comments or any questions just leave them in the comments below have a
wonderful day and I wish you the best of luck
you