- Who does your Realtor work for?
Unlike most other states ( 42 out of 50) the state of Tennessee allows a Realtor to act as an agent for both the Buyer AND the Seller in a Real Estate transaction.
This is supposed to allow for a “streamlined” or “simple” transaction.
In reality it is an obvious conflict of interest.
This is especially apparent in new home sales in Nashville where people relocating from other states are casually shifted out of their right to be represented by their own agent.
The result is often a muddy transaction where the buyers don’t know or exercise their right to inspection ( yes Virginia, you need to have a new home inspected and you have the right to it), repairs and negotiations. You can spot these Nashville home owners because they are the ones with the nagging problems in their new homes after their warranty is expired and the builders realtor has moved on to greener pastures.
Often the poor consumer is led to believe that having one realtor will lower the price of the home. A misleading and unethical claim.
If you are moving here from out of state. Take full advantage of the law. demand your own agent, one with no conflict of interest. The builder or Seller pays the commission for your Realtor and you deserve an advocate.
- Is my Earnest money non-refundable?
No. The law permits the refund of Earnest Money ( down payment) and consumer protection in three ways.
In order for the transaction to proceed to closing, the buyer must be satisfied by a) Home Inspection, b) Appraisal and c) Mortgage ability.
If the home has issues in any of these areas, the deal can be called off by he buyer and his earnest money is refunded.
This year the Yahoos who run the state legislature lost all sense and placed the responsibility for Termite clearance squarely on the back of the Buyer. What were they thinking? It’s anybody’s guess.
If your Realtor does not address this, you could be looking at either a delayed closing ( if your mortgage provider wants a Termite clearance in the 11th hour) and/or a bill for anywhere between $60 and $175 at closing for a Termite clearance letter that for the last 20 years has been paid for by the Seller.
Worse yet, the Termite inspection could be overlooked and you might be getting something you hadn’t planned on- Termites in the basement.
A qualified agent is your best bet to a smooth transaction and a fair price on your next Nashville home. Whether your buying a new or existing nashville area home, know your rights.