As new developments such as FENDI, Ascent, and Optima McDowell Mountain Village go up for sale in Scottsdale, did you know it is NOT in your best interest to buy straight from the developer? In fact, there are TONS of reasons why you should NOT go straight to a developer. In this edition of LUXE BLOG, we will go through some (of the many) reasons why.
First off, going directly to a developer does NOT save you money off the purchase price. While most end-user real estate consumers may think it does, it does NOT. For a number of reasons, a new home or condo developer cannot legally offer incentives to potential buyers via encouraging them not to use their own real estate agent. In fact, as of 2022, DUAL AGENCY is ILLEGAL in eight states. Just because it is legal in Arizona does NOT mean it is safer. More on that later.
Without making this blog too long, the bottom line is that working with an experienced OUTSIDE AGENT is a very smart idea when buying pre-construction and/or new real estate.
P.S. Developers love (and need to) participate with the local brokerage community. And this is even MORE true during a tough market like we are in as of late 2022. Also, most of the time, the commission is built into the purchase price of the property and/or the developer’s loans.
A dual agency occurs when a real estate agent or brokerage represents both the buyer and the seller in a real estate transaction. This can create a conflict of interest for the agent, as they are expected to act in the best interests of both parties. While dual agencies are legal in some states, it is important for buyers to understand the potential risks and drawbacks.
One concern with dual agency is that the agent may be more focused on closing the sale than on advocating for the best interests of either party. For example, an agent may be more inclined to push for a higher sale price for the seller, even if it is not in the best interests of the buyer. Similarly, the agent may be more inclined to negotiate on behalf of the seller, rather than advocating for the buyer to get the best deal possible. Additionally, this can happen when buying NEW real estate from a developer.
Another concern is that the agent may not be able to fully disclose important information about the property or the seller to the buyer. This is because the agent is required to keep certain information confidential, in order to protect the interests of both parties. This can make it difficult for the buyer to make an informed decision about the property. It can also result in them paying more for a property than they otherwise would have.
As of 2022, dual agency is illegal in eight states. Those states are:
The takeaway. Just because Dual Agency is allowed in Arizona doesn’t mean it’s a SMART idea to get caught up in one. Especially when buying a new piece of real estate.
Williams Luxury Homes is well respected for its experience selling new real estate developments in Arizona. We keep it VERY REAL. Why? Because our loyalty is to the consumer, not developers. Some of the advantages of working with us when buying new real estate are:
Thanks for taking the time to stop by our little corner of the internet. Should you want to confirm what we’ve pointed out in this article, feel free to read this Forbes article on Dual Agency. Namaste.