Using the builders agent, is this in your best interest?


The decision has been made, you are not only going to buy a new home, you have decided to build. In every model you went through, there was an agent there and you found one that you really like. Being the expert in real estate you are, you decide that you will use the builders agent. Along with convenience, many people think they will get the agent to cut commission because they are working both sides of the transaction, their interests will be protected and the service will be of the utmost quality.

Are you really sure you know what you are doing? What most people don’t realized is the agent that represents the builder has a contract with that builder and their FIRST duty of responsibility in the transaction will be to the builder. The builders agent still has a fiduciary responsibility to protect the buyers interests and has to be careful what they tell the builder about the potential buyer, but any pertinent facts the buyer tells the agent, that agent may tell the builder, such as qualification of dollar amount, time frames, and any other information that may lead the builder to think twice about working with a particular buyer. For instance, if there are two parties talking with the builders agent and they are both thinking about building on a particular piece of land and both parties have informed the builders agent what they plan to offer, the builders agent may tell the builder the prices or information they know. This could work against the buyer in obtaining the piece of land they would like to build on.

Some buyers think that if they work with the builders agent, they will get a reduced commission or the dollars will be applied as a credit to the build. This could not be more incorrect. The agent working for the builder has already signed a right to represent contract with that builder that will protect the commission on the sell side. What people don’t realize is that the property is listed on the MLS with a pre negotiated pay out for the buyer agents side of the sale. The agent may cut some of this pre-negotiated commission, but many will not completely cut their pay they are to receive for the buyers side. The builder, by law, can not issue the buyer a kick back of any sort as it is against the law. The only persons in the transaction that can receive payment from the purchase is persons that are licensed by the state with an active license and all dollars or funds MUST be disclosed on the HUD at closing.

So when you are thinking about building, make sure your interests are protected as strongly as the builder you are working with and have your own representation. Your agent, once working under a buyers representation contract signed by both you and the agent, is required to work for your best interests. This representation should start from the moment you start to consider working with a builder, to the platting of the home on the land, the selections, the periodic walk through you will want to do, negotiations, closing and all in all making sure that you get the home you truly want, not the one you have to settle for.

Your Minnesota Real Estate agent providing quality service whether buying, selling or relocating. Experienced in short sale & foreclosures. Learn more at http://www.VickieGylling.com.

I Need to Hire a Contractor. What Should I Know or Do?


Many people are opting to stay in their current homes and remodeling and not building a new home or moving into a different home. Not sure how to do the work and want to hire a contractor? Where do you find a good contractor, what questions should you ask, how much should they charge? These are all probably questions you are asking yourself.

The first thing that I tell people is ask around. The best information we can gather is from friends and family. They may have information of a person that they used that was outstanding, not so good or didn’t do what they want. So, be sure to let people know you are looking for a referral and see what they have to say.

Once you find the person you want to work with, call the Better Business Bureau. You are going to want someone who is licensed & insured so if something happens during the process, whether to them, you or someone in your family, they will be able to pay for any of the medical or correction items needed. Tell the contractor that you would like to speak with 3 different UNRELATED people they have worked for. The reason you want someone who is unrelated to your contractor, is we all know we will vouch in a positive way for our family members that need a referral. While you are on the phone with these testimonial persons, here are a few questions you may want to ask:

~Was the contractor and employees courteous & thoughtful to your home, space & your privacy.

~Do they feel the job was appropriately charged.

~Did the contractor do a good clean up job at the end of the project to make sure that the area and surrounding rooms were clean & tidy.

~Were they on time according to the schedule you agreed to upon the signing of the contract.

~Was there continual contact during the project, whether they were running late, not able to make it that day or acknowledgment was given for any other reasons/days they were not going to be able to make it.

~If the project goes over the projected finish date, did/does the contractor give discounts for your inconvenience.

Also ask to see pictures of current past projects they have done. Some contractors will also have photos of the progression of the project and you may be able to see how the space around is for cleanliness.

So know you have found your contractor, spoken with some references, now it is time to sit down with the contractor to begin your project. Make sure the contactor completely understands your time/budget you have to work with. Ask them to do a drawing of the finished project with measurements and a detailed cost outline. If you are working with more than one contractor, they may ask to see one of the other drawings you have received, DO NOT let them see the other plans. This should be something that comes with your contract. Each contractor has a different style, hourly rate & cost price. You do not want them to look at the other contractors work and say, “YEAH, WE WOULD BE RIGHT THERE WITH THEM.” What does that really mean. Also, ask the contractor if they charge and added price for a draft done earlier and if they will reasonably sell you the draft even if you decide to not hire them or go ahead with the project at that time.

So you have the plan know and you are ready to go. In the contract, have a very detailed timeline for when milestones will be done. This will keep your contractor on track and not push you to the bottom should a higher paying contract come in. Also, DO NOT pay the contractor up front for all the work. Break the payments out based on the completion of work that has been done. An example would be the contractor could get 40% when the contract is signed another 20% when the job is half done and the rest upon completion. By upon completion, make sure the contractor knows this means the space & area to be cleaned & in good repair also. Ask the contractor if he will give you a discount if you let him take pictures for his portfolio/website once the project is complete. Remember, they don’t give you anything for free, so why should you let them put your idea out there for others to copy?

The other thing you want to be sure is that the contractor can afford to buy the supplies needed without other upfront dollars from you. If you have a specific item you want to get yourself and supply for the contractor, ask them if they will give you a discount for your time & energy to have this there for them when needed. Be sure if the contractor orders something specific for you and you pay the in advance or during the job for this specific item, that the contactor informs that shop that he ordered it from you also have the right to pick it up. If the contractor does not authorize you to be able to access these items, you will never be able to pick the item up and if something should happen to the contractor, you will never get this item.

Also be sure that someone is available to be at your home at all times during the working process. The contactor may come across questions or complications that need immediate answers and if you or someone who knows what is to happen is not available, the contactor may just make an executive decision. The other thing to remember is this person may be in your home for long periods of time and unless you completely trust them, they will have access to your personal belongings. Make sure important papers, blank checks, expensive items and sentimental items are put away or locked up.

If you take the time to do your homework up front, you should get the outcome you want and have a pleasant experience. If you do not, do not be afraid to contact the Better Business Bureau and file a complaint. Remember, if someone had complained with their unsatisfied work, you may have thought differently in hiring this person also. So do someone else a favor if your experience was not a pleasant one and let others know about the contractor and what happened.

THE SPIRITS TO MOVE is here to give quality information & ideas.

Your Minnesota Real Estate agent providing quality service whether buying, selling or relocating. Experienced in short sale & foreclosures. Learn more at http://www.VickieGylling.com.

How Cold is Cold?


It is Friday, January 21, 2011. If you are living in the Minnesota area, you know that the freezer door has definitely been opened on our state. It is 10 am and our current temp here is -15 and with the windchill they are saying it is about -35. How’s that for cold?

How does this cold affect your home? This type of cold can do a lot of damage to your home if you are not paying attention. With just a couple easy steps, you can elevate a lot of pain.

PIPES~ Most people think that the pipes are on the inside of the home and the home is heated so they should be fine. But do you know that the pipes that are located on exterior was and in cabinets will get cold. So if you can, leave the cabinet doors open so the heat from your home can get directly to the pipes. You can also put towels or by the pipe heating blankets.

WINDOWS~ Unless you build your home and put high quality windows in, the chances of having some sort of draft from your windows is very likely. Most of your box stores now sell plastic that can be placed on the trim work and keep these drafts out. This will also save you dollars as your heater won’t have to work so hard to keep heating the air.

DOORS~ Not only does our family & friends come and go from these area, but so do your dollars in the winter seasons. Invest a few dollars and put the foam around the doors to keep the cold drafts out. You may also want to invest in draft preventers that go at the bottom of the doors.

So with the economy straining our pocketbooks, why not take a few moments of your time and put some of those dollars back into your wallet? Invest a little time into your home and keep it warm.

THE SPIRITS TO MOVE hope you & your home stay warm!

Your Minnesota Real Estate agent providing quality service whether buying, selling or relocating. Experienced in short sale & foreclosures. Learn more at http://www.VickieGylling.com.