DON'T IGNORE THE NEW HOME CONSTRUCTION IN THE BUYER'S SEARCH AREA, BEST BUSINESS PRACTICES.
Famous last words. . . . . "But, Lenn, they said they weren't interested in new construction."
We often read posts from agents complaining that a buyer with whom they have been showing homes. . . . well, you know the story.
"They stopped returning my phone messages."
"They don't answer my e-mail."
The last the agent will hear from that buyer is the advice that they signed a contract to buy a new home.
When a qualified buyer isn't finding what they expected in resale homes for sale, it isn't beyond comprehension that, if that buyer happens to drive by a new home construction, with an open model. . . .
You know the rest of the story. They went in, saw the beautifully decorated new ho
me and were absolutely captivated.
Of course, the new home agents on duty will provide a form for them to register TO GET A BROCHURE. At the bottom of that form may or may not be a clause, "Builder pays co-op or finder's fee to Realtors ONLY when the agent accompanies the buyer to the builders site on the buyer's first visit."
In other words, the builder is paying YOU for "INTRODUCING THAT BUYER TO THE BUILDER".
O.K. I can hear the cacophony, "That's why we always have a Buyer's Agency Agreement" (BBA). Well, as many agents have discovered, that BBA doesn't guarantee you payment of the co-op, finder's fee or lunch money. What it does is give you (or your broker) a contract upon which to sue the buyer for breach. Funny thing, many agents are so afraid to ask for a BBA, they insert a big fat "$0" (zero) as the broker's fee to the buyer. It's not likely that, even if a broker/agent sued for breach of the BBA and won, the judge is likely to award you just what the contract states is the fee, $0 or ZERO.
LENN'S ADVICE TO BUYER'S AGENTS. Even when the buyer indicates that they are not interested in buying new construction, protect yourself.
Take an afternoon and visite every new home site in the search area (and wider), GET THAT BUYER REGISTERED in your name, meet (cultivate) the site agent, GET THE BROCHURE and walk the model homes and any homes the builder may have in inventory or under construction.
INTRODUCE BUYERS TO THE NEW HOME BUILDERS THAT MAY INTEREST THEM. Make it a point to meet with the buyer to hand deliver the new home brochures or flyers for inventory. Go through the pricing and INCENTIVES OFFERED BY THE BUILDER with that buyer. YOU MAY BE SURPRISED when they are interested in taking a tour of new homes WITH YOU. Of course, the BUYERS are already registered. So, since you have "cultivated" the new home agent, you have a better chance of being entered as the buyer's agent even if they go in without you.
OUT OF TOWN BUYERS??? Get out there, collect the brochures, register the buyers and mail the brochures to the buyers. Fact is, out of town buyers find builders' sites on the Internet and builders often have registration forms on their site. Or, even more risky, the buyer may telephone the builder and register themselves by phone. I am aware of a few builders in my area that will not pay a broker if the buyer has registered themselves, even by phone or e-mail. PROTECT YOURSELF and don't assume that the buyer WOULDN'T DO THAT. HA!!
I also know from experience that, even when a young buyer's father has said, "buy only older homes made of brick", that although they've looked a many older brick homes, if you take that young couple into a new home model, just watch them smile. If that new home is in their price range, you'll likely make a sale.
Don't ignore new home builders in your market area. Get to know them. It's good business practice to be the local expert for ALL TYPES OF REAL ESTATE IN YOUR MARKET AREA.
Courtesy, Lenn Harley, Broker, Homefinders.com, 800-711-7988.
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