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Phoenix Arizona Real Estate Blog presented by Jonathan Dalton, RE/MAX Desert Showcase

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Phoenix Arizona Real Estate Blog, presented by ...

How to Spend Thousands More than Necessary on a New Build

Dec. 16, 2006
"But I asked the builder and he told me there was no advantage to using a real estate agent."

Really? I'm shocked. Shocked, I say.

Independent representation generally is a good idea in any real estate transaction, whether a new build or a resale home. There are some unique circumstances where dual agency - a single agent or brokerage representing both buyer and seller - makes sense, but those are the exception rather than the rule.

When you walk in the front door of a model home, you need to know something ... the agent behind the desk is not your friend. Your best interests are irrelevant to her. You are a sale on legs. And for all the friendliness displayed, the basic fact remains that the agent represents the builder. Not you.

Think this might make a substantial difference? Here's a short list of items the builder's probably not going to tell you ...
  • Short-term promotions (i.e., a swimming pool when you purchase that weekend) are not necessarily short term.
  • Most of the incentives advertised are available only when using the builder's lender.
  • The price you see on Realtor.Com or another search portal may not even be the base price - it may be the price after incentives.
  • In most cases, the builder will not be putting your earnest deposit in escrow but instead will be depositing in their account.
  • Lot premiums are negotiable.
  • Price often is negotiable, especially later in the transaction when it's possible you as the buyer may be running into some challenges selling your own home.
And, probably most important of all ...
  • In a market such as the current one, the builder needs to sell far more than you need to buy. You have leverage - tangible, reach-out-and-touch-it leverage.
For more information on working with new builds, send an e-mail to this address and you'll get a free report automatically sent back to you.

(c) Jonathan Dalton, 2006 / Jonathan Dalton's Arizona Homes

Irony, thy name is Russell

Nov. 8, 2006
There are some mornings when you wake up and just can't believe how good life really is. These mornings usually don't follow 15-hour days spent photographing multiple listings, negotiating buyers' inspection reports and driving children to soccer practice ... but today, it did.

This morning on Voldemort's blog, Russell Shaw discussed "How Much Should an Agent Charge?" An excerpt:

How much commission should an agent charge?  Well, I suppose it depends on the agent.  I charge more than Nu-Way.  I charge more than most agents charge.  Why?  Because I am worth more and I want to.   When the market was so on fire that most of the public thought of us as a commodity - and most Realtors couldn’t wait to agree with them, we had potential home sellers call our office every day and tell us they could get someone to list it for less.  We already knew that and it made no difference what commission percentage they told me they could get an agent to list their home for – I would tell them, “you can get it for even less than that”.

But there were still loads of home sellers who understood that what we did wasn’t the “same as everyone else”.  In that market we factually sold homes for more money.  In this one we actually get them sold.  Anyone who wants to hire one of the limited service companies (who want to insist on marketing themselves as FULL service at a lower price) gets exactly what they deserve.  Those companies track records for selling their inventory really isn’t the same as mine.  It isn’t even as good as the market average.  Those companies do have a wonderful track record with regard to marketing themselves to the public but not for marketing their listings TO the public.

So what he is saying is if you provide superior service, you have justification for demanding a higher fee for doing so. I'm sure I've read something along those lines before ... where was it? Oh, yes. Now I remember.

The irony is the above excerpt was posted the blog of the same person who called me a fool ... no ... twice a fool for making the very same argument. It's an amazing world, folks.

(c) Jonathan Dalton, 2006 / Jonathan Dalton's Arizona Homes