Just this last week (April of 2009) I convinced clients of mine to switch their search focus from one senior community which is now nearly all re-sales and had limited availability of the model they like to the community across the street - K Hovnanian's Four Seasons in Beaumont. I called the sales office to ensure they were still cooperating with agents. They happily informed me they were paying 5% until the end of April. I confirmed that they had similar amenities, tax rate and HOA dues to the homes across the street so I could present that information to my clients. They thought it might work for them and agreed to tour the models with me. We arrived, talked to that same sales agent, filled out paperwork, then toured the models. Upon our return with news that we found a few possibilities, the first sales agent was busy, but had another agent inform me they would NOT cooperate unless management approved it because my clients had been there in August of 2005. Once reminded, my clients recalled coming to see the models because an excited friend wanted them to visit when he considered a purchase there. They told us they would probably be able to work something out - maybe a reduced 2% commission. When we came in to finalize the deal and bring the deposit check to hold the home, they regretfully informed me that they couldn't find a way to pay me anything. I asked if they could then credit that same 5% to the buyers and was told no because "that money comes from another bucket." I pushed thm saying they would have paid that moeny out if different buyers had bought the home, but got nowhere. My clients tried to reason with them, repeatedly told them how disappointed they were, and were even willing to walk, but I wouldn't let them because there was only one model left with a somewhat quick move-in date that they liked. Has anyone had any success fighting this? Any words of wisdom would be greatly appreciated! My clients never received nay follow-up mailings from them after first visit and had forgotten they existed because they were too "pricey" for their budget when they first looked. Although other homes are listed as active on MLS with 5% offered, this particular home was not. It appears that homes ON MLS showing 5% are all conveniently in escrow...hmmmm. Thank you for your helpful comments!
RE/MAX Compass - Houston, TX
Houston, Texas
Michelle,
My experience with most builders is that they always are looking for THEIR best interest & NEVER for the buyer's LONG-TERM interests. NEVER trust the sales guy, EVER. Before showing new construction, I always prep my clients about the role the employee plays. Most sales counselors have NO idea what we do for a living. They are used to sitting in a chair all day and having "ups" or people walking in. Its a numbers game to them & how fast and how many contracts they can get signed in a day.
For the most part, builders have a love hate relationship with us. They LOVE it when we bring buyers, they love it more when we don't exist.
I wouldn't tolerate any bottom feeder tactics from the clowns if I were you. Tell your board, tell a friend and let everyone know about your experience. Best to you.
Apr 25, 2009 05:32 PM
RE/MAX Concepts - Des Moines, IA
Serving the metro since 2003
Michelle: That's a thorny one. You should have taken a showing agreement to sign instead of calling. That's why all offers for real estate need to be in writing. After that, it was all water under the bridge. Here's the silver lining, now you know. As you may be in the business many years this lesson could make you untold thousands of dollars in the future. Those clients are gold and will repay your kindness ten-fold, watch. Hovnanian will get all the bad press and you will get accolades.
Apr 25, 2009 05:56 PM
Berkshire Hathaway HomeServices California Properties - Cerritos, CA
I would ask management for a copy of their policy on cooperating with brokers, they must have something in writing. It was over 3 years before when they visited the complex... I honestly don't think they could claim to be the procuring cause in this case because the gap on time, like I said, unless their policy states something like "no commission will be paid to brokers whose clients were registered on our visitor's log during the last 5 years".
This issues with builders really get me irritated... why don't you call DRE legal aid and run the question through them...
Apr 25, 2009 06:02 PM
Lenn Harley, Homefinders.com, MD & VA Homes and Real Estate - Leesburg, VA
Real Estate Broker - Virginia & Maryland
This is a real problem. When the agent registers a buyer, it's good for about 30-60 days. When a buyer registers without an agent, it's good forever. The builder doesn't care. They'll eventually sell the unit.
I'm surprised that KHov is taking this stance. I've sold their homes and found them to be very agent friendly.
Different areas and management teams show different policies.
Sadly, the buyers should have told you that they had visited the site. I don't buy the "we don't remember". You could have gone in without them and made an arrangement with KHov that could have worked out. The promise of bringing a buyer may have made a difference. I've done that with builders. But, the buyer has to be up front with the agent and they are not always.
Apr 25, 2009 10:19 PM
Long & Foster - Fredericksburg, VA
Jim Crawford Broker Associate Fredericksburg VA
August of 2005?????? Have your broker contact them and read them the riot act!
Apr 26, 2009 01:02 AM
Anonymous
Thank you for the great comments so far. We have such a supportive community of REALTORS! My clients and I will keep fighting them! Any specific tricks/tactics are still very much appreciated. Would the builder be more influenced by the local Board of REALTORS or the Better Business Bureau or some other agency - any ideas? Thanks again!
Apr 26, 2009 04:13 AM
#6
Rainer
2,107
2,107
Michelle Brittingham
REALTOR, GRI, e-PRO, ASP
Comments(12)