Question: I recently went to several new development projects to look at the home options they have and didn’t want to bother my Realtor.  The next time I was out with my Realtor looking at homes I let her know this.  She didn’t seem pleased for some reason.  My wife and I were trying to decide to purchase in the new development or outside of it.  After that day we never heard from our Realtor again.  Did we do something wrong?

Answer: No, you didn’t do anything wrong, but it sounds like your agent didn’t take the time to fully explain the real estate process, and unrightfully bailed on you.

When it comes to new development projects (new condo high-rises, new home subdivisions, Resort developments) on Oahu, the developers will pay a commission to your agent IF you are accompanied by your Agent on your first visit to the project and you register at that time with your agent. It doesn’t cost you any more money to do so, and there is a benefit: Representation, or someone to look after your best interest, and the hundreds of pages of documents that go along with a development.  Because the amount of paperwork to comb over from development projects can be a daunting task, most buyers don’t look through the papers thoroughly.  The free representation is, by far, worth it.

These developments attempt to get you to come to their developments where they can register you in their database.  Once you have visited the development on your own and are in their database the seller/developer will no longer pay an independent agent, like myself, to represent your interests.  Just remember when you work with an in-house resort/development agent, they do not have your best interest at hand, and they have a fiduciary relationship to represent the seller exclusively.

Please contact your Realtor before walking into or calling a sales office at any development project if you want independent representation without additional cost to you.  Also, read the developers fine print addition:

WARNING: If your initial contact with a developer’s sales team is on your own, in-person, you will, without your consent, lose your right to independent buyer representation paid for by the Seller/Developer at no additional cost to you.

Since Agents don’t get paid a dime for showing homes — only for selling them, I can only assume that your Realtor lost motivation to work hard in finding you a home, since he/she felt they may be doing pro-bono work if you decided to buy in the development project and was too afraid to mention that he could represent you on the new development project at an additional cost to you (You pay your Realtor directly in addition to the purchase price of your new home for representation).  Anyhow, this could have been avoided with proper communication.