Toward the height of the supposed real estate boom there were builders out there advertising not to bring in an Agent.
"BONUS TO BUYER*
* Buyer's without agents"
Some builders even went so far as to create lengthy agency contracts for how a Realtor would get paid. Most of which required the Realtor go stick their heads in the dirt while their client was hi-jacked by the builder's staff.
What's puzzling, is how these builders do business. Some have employees, some have agents that have gone through special training to be effective but hold their license with a builder affiliate. While others have new home veteran agents sit in their homes.
Some of the larger builders still have their agency practices and attack dog agents on site, but many of the more agile builders are starting to sing a new tune. No longer is an Agent a road block (or speed bump) in the transaction. Realtors are builder's friends.
See, when you're in a tough market and you're not selling inventory, you're forced to re-evaluate the situation. Where do buyers come from?
Well there are all sort of stats, but the statistics for co-op sales is something in the 80% range. Might be some sort of correlation. Now, instead of being scoffed at for bringing a buyer into a neighborhood, I'm getting a 5% bonus, or a new car or a golf membership. Want to take a cruise? All you need is a qualified buyer. One builder gives $25 per showing!
I read one article the other day from Agent Direct News that stated some builders are looking at referral opportunities. Since they have such a high walkthru rate, they are missing out on a huge potential to for either strong relationships, or extra income.
Bottomline, builders are hurting and they're looking everywhere for help. Don't believe the lie that builders don't negotiate. I'm not sure who started it, but they are dead wrong. Builders are some of the most desperate sellers out there. There's some logistics that make it tough for a builder to give up a huge discount. If you can't get the builder to move on price, you can get other things instead. Just don't be afraid to ask.
If you're buying a new home in the Atlanta area and you don't plan to use the Jarvis Team, USE SOMEONE! You won't be getting any more discounts and you're even more likely to miss out on something now than ever.
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From a builders prospective ask yourself how many Buyers Agent drop off their clients at a model home and have the on site real estate agent write the offer, present the offer and do the paperwork? 90% is the Home Builders Associations data. The home builder sees most buyers agents as uneducated parasites who misinform their clients and set unrealistic expectations on the new home sales process. Biggest complaint from clients who use buyers agent for a new home purchase, they agent did not do anything I could not have done myself..."ouch"
Builders need agents to deliver the client, get the financing done, get the buyers house sold if there is one to sell and complete the required builders meetings for pre-construction, framing, drywall, paint, install and final walk all befor closing. Less than 30% of Buyers Agents know these steps but they all remember to show up at closing....
As a Broker I suggeset all of us take a look at our agent's knowledge base and skills...in the world of a true professional most agents would have a failing grade in new home construction buyers representation