Yaki, Home Buyer in Denver County, CO

Interested in a model home in GVR that is not yet on the market. Builder has advised that I should just keep in close contact with the sales

Asked by Yaki, Denver County, CO Thu Mar 15, 2012

rep's... Is there a way to know when the model homes will be put on the market? Is it okay for me to keep in contact with the builder OR should I get a buyer's agent to help me even though I have no idea when it will be listed...

Any insight is greatly appreciated.

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Answers

11
There is no reliable approach. A few different scenarios can play out, and in one of those scenarios the community sales rep will wind up selling it to a corporate contact.

There is no set policy that spans the entire industry. Traditionally, an investor who leases the home back to the builder makes the home available after the lease runs out. These are typically month-to-month leases.

It is good advice to stay in touch with the sales rep. If all of your ducks are in a row, you have a shot. So, talk to the rep. See if there is a sense about how and when the model will be sold. The community representative knows on what pace the homes are moving and therefore knows when the last lots will be sold. That's about when the sales team will vacate. Sometimes the sales people are already working from a new site when that occurs. The last homes can take longer, too. So you're likely to get only a general idea of when the model will be sold.

If that helps, there you are.

Best regards,
Suz
0 votes Thank Flag Link Wed May 8, 2013
The sales agent on site may have a favorite agent already in mind to contact first about the model. If you have a buyer's agent , there is nothing to prevent you from making an offer now, offering the builder a lease back. They are not obligated to take it, but it will show them that you are a real buyer. If their sales agent is licensed, they are obligated to present the offer. Offer a substantial earnest money deposit, include language about the condition of the property when you take posession. Otherwise, your agent can put the address number in the mls as a prospect search with a code for you. If the buildier lists the property in mls, the moment it hits, your agent will get an email. I hope this is helpful. If you do not have an agent, feel free to contact me for help.
0 votes Thank Flag Link Tue Apr 3, 2012
As stated below, if you haven't already registered with the builder (presumably Oakwood Homes) then I would highly recommend using a buyers agent to assist you with the purchase. Many times, agents have very good working relationships with builders who might give that information as soon as these homes become available. They can also keep an eye out for new inventory homes that meet the buyer's needs, are close to the model in both floor plan and finish level and represent value (priced below market or negotiable). The builder will pay the agent's commission (as stated if you haven't already registered without an agent) and that agent will work for you throughout the process.
Best of luck.
Chuck Strauss
Your Castle Real Estate
720-318-7598
denverhomeguru@gmail.com
http://www.denverhomeguru.com
0 votes Thank Flag Link Sat Mar 17, 2012
Thanks for the information! I wasn't sure how to reply to all so i'm commenting on each response instead. What exactly does it mean to 'register' with the builder? I was going to build a home with the builder, signed a contract and then ended up cancelling with a fully refunded earnest deposit b/c the engineering report said I could not build a basement after I already chose my structural options. I assume that wouldn't count as 'registering with the builder'. I also didn't think that contacting them via email about when the homes within a specific model community (not a specific model) would go on sale would count as a registering with a builder. Is there anything which explicitly states how registering with a builder is defined?
Flag Sun Mar 18, 2012
Model homes are coveted by high net worth investors whom, sometimes it seems, have the ability to swoop in and buy the model before word every gets out that the home is available. Finding out the when is the important part when contracting on a model.
0 votes Thank Flag Link Thu Mar 15, 2012
Yaki,

Good question. It is certainly better to have a Buyer's Agent when purchasing a new home from a builder. You have absolutely no representation otherwise. The builder's rep only has the builder's interest at heart and will make the best deal he can for the builder. I have bought and sold new homes in GVR over the years. They have the Buyer's Agent commission built into the price and are willing to have the agent work with their buyers. The builder prefers to have the buyer come into the development with the agent the first time. Sometimes they will not work with the buyer's agent after that; but we can certainly go out there and register in with them. That way they will let me know and you know when new properties become available or when a potential buyer drops out. Let me know how I can help.

Robert McGuire ASR
Realtor/Consultant
Your Castle Real Estate
1776 S. Jackson St. #412
Denver CO 80210
Direct – 303-669-1246
http://rmcguire.yourcastle.org
0 votes Thank Flag Link Thu Mar 15, 2012
Thanks for the information! I wasn't sure how to reply to all so i'm commenting on each response instead. What exactly does it mean to 'register' with the builder? I was going to build a home with the builder, signed a contract and then ended up cancelling with a fully refunded earnest deposit b/c the engineering report said I could not build a basement after I already chose my structural options. I assume that wouldn't count as 'registering with the builder'. I also didn't think that contacting them via email about when the homes within a specific model community (not a specific model) would go on sale would count as a registering with a builder. Is there anything which explicitly states how registering with a builder is defined?
Flag Sun Mar 18, 2012
I have worked for builders and can tell you that they will often negotiate the terms to buy a model. I had investors that would buy the model home and then lease it back to the builder. However, these type of deals can get sticky. The sales person telling you to keep in touch maybe true as the builder may not be interested in selling until the property is completely built out. However, the sales person is also required to meet sales numbers and may be hoping that you will give in and buy a lot and home from him/her sooner rather than later. If you are truly interested in the model be aware that there will be hundreds of people go through the home before it is sold. Further, they will often times be more expensive due to all the bells and whistles and they will not discount the fact that it has been used. I could go on and on. You can contact me direct if you have questions or need more advice.
0 votes Thank Flag Link Thu Mar 15, 2012
Thanks for the information! I wasn't sure how to reply to all so i'm commenting on each response instead. What exactly does it mean to 'register' with the builder? I was going to build a home with the builder, signed a contract and then ended up cancelling with a fully refunded earnest deposit b/c the engineering report said I could not build a basement after I already chose my structural options. I assume that wouldn't count as 'registering with the builder'. I also didn't think that contacting them via email about when the homes within a specific model community (not a specific model) would go on sale would count as a registering with a builder. Is there anything which explicitly states how registering with a builder is defined?
Flag Sun Mar 18, 2012
Unless you are an experienced home buyer, it is always a good idea to have a buyer's agent on your side. Be aware that in this case, the builder may not be obligated to pay your buyer's agent. The cooperation agreement that most builders extend to the brokerage community generally provides that, in order for the broker to be paid a commission by the builder, the broker must be present at least 3 times during the purchase: 1) the first time the buyer walks through the door, 2) at the time the contract is signed, and 3) at closing. Since you have already spoken with the builder, they could claim that your agent was not the "procuring cause," and refuse to pay a commission. If that is the case, you would be responsible for paying your agent. In this market, however, some builders will overlook the break in protocol so as not to jeapordize the sale. You should discuss this with your agent, the builder, and legal counsel in order to avoid a last-minute misunderstanding. With all of that in mind, a buyer's agent will be invaluable in helping you buy your new home. Good luck!
0 votes Thank Flag Link Thu Mar 15, 2012
Thanks for the information! I wasn't sure how to reply to all so i'm commenting on each response instead. What exactly does it mean to 'register' with the builder? I was going to build a home with the builder, signed a contract and then ended up cancelling with a fully refunded earnest deposit b/c the engineering report said I could not build a basement after I already chose my structural options. I assume that wouldn't count as 'registering with the builder'. I also didn't think that contacting them via email about when the homes within a specific model community (not a specific model) would go on sale would count as a registering with a builder. Is there anything which explicitly states how registering with a builder is defined?
Flag Sun Mar 18, 2012
The KEY thing to know is that a Buyers Agent will work for you, keep you informed of when lots will be released, when ground will break, help you negotiate price and upgrades because a buyers agent works for YOU but is paid by the seller at the completion of the process. The sales rep that works for the seller is not working for you, they are trying to keep the seller / builder happy.

Short answer, you should definitely use a buyers agent. I have several on my team that would be thrilled to help you get the best home at the best price. Call me at 720-296-5262 or email me sam@sambarnesrealty.com
0 votes Thank Flag Link Thu Mar 15, 2012
Thanks for the information! I wasn't sure how to reply to all so i'm commenting on each response instead. What exactly does it mean to 'register' with the builder? I was going to build a home with the builder, signed a contract and then ended up cancelling with a fully refunded earnest deposit b/c the engineering report said I could not build a basement after I already chose my structural options. I assume that wouldn't count as 'registering with the builder'. I also didn't think that contacting them via email about when the homes within a specific model community (not a specific model) would go on sale would count as a registering with a builder. Is there anything which explicitly states how registering with a builder is defined?
Flag Sun Mar 18, 2012
Hi,

I will be happy to contact them for you or you can keep on eye on it on my website. It is updated daily.

Best regards,

Matt Mansfield
Equity Colorado
303-725-8484
0 votes Thank Flag Link Thu Mar 15, 2012
Hi,

I will be happy to contact them for you or you can keep on eye on it on my website. It is updated daily.

Best regards,

Matt Mansfield
Equity Colorado
303-725-8484
0 votes Thank Flag Link Thu Mar 15, 2012
Yaki,

My suggestion is to always work with a buyer's agent. Why not have a professional on your side, especially when the seller pays the commission.

However, if you have already registered yourself as an unrepresented buyer with the builder, the builder may refuse to pay a co-op.

Who is the builder in question? I could contact them and see what I can find out about this particular model and how they would address the issue of you working with an agent.

Best of luck,

John Keene
303-547-7578
0 votes Thank Flag Link Thu Mar 15, 2012
Thanks for the information! I wasn't sure how to reply to all so i'm commenting on each response instead. What exactly does it mean to 'register' with the builder? I was going to build a home with the builder, signed a contract and then ended up cancelling with a fully refunded earnest deposit b/c the engineering report said I could not build a basement after I already chose my structural options. I assume that wouldn't count as 'registering with the builder'. I also didn't think that contacting them via email about when the homes within a specific model community (not a specific model) would go on sale would count as a registering with a builder. Is there anything which explicitly states how registering with a builder is defined?
Flag Sun Mar 18, 2012
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