Broker Agent News is an industry publication that I get emailed to me, and also purchase printed. They always have great information for real estate agents, and I keep the copies to share with agents in my office. Today in my email I received this great article on the do’s and don’ts of buying new construction.
One thing that I feel I should point out is the author’s mention of dual agency. In Maryland the same agent can not represent the best interests of both the buyer, and the seller. In reality I don’t think they can do it any state, though it is legal for an agent to do that in some. Maryland is not one of those states. Dual agency in Maryland means both agents work for the same broker.
Another thing I think he left out is builder incentives for using their lender, and/or title company. Check their prices against their competitors, you may find the $10,000 you received in upgrades was made back on the loan. I know of one builder here that used to require use of their lender for purchase. That is legal. A real estate agent can not require a buyer to use a particular lender or title company, a seller can. The Southern Maryland Housing Bubble News posted a link to a Washington Post article about builder incentives here. Yes, it does pain me to type Southern Maryland and bubble in the same sentence, and I disagree with Patch on the issue of whether or not we have a bubble, but he is very insightful on the real estate industry, and our local market.