What's up with Builders

Am I the only one having trouble with builders now.. They entice you with these high percentage offers and are then negotiating your commissions the second anything gets close. Atleast when the market wasn't hot and builders were offering less, we knew the deal. The builders are going directly to the buyer and complaining about how much they are paying us, and renegotiate our pay without our knowledge.

I have two deals pending now where the builders are being unreasonable and will never get future business from our team. These builders don't understand that we bring them buyers and if they mess with us, our friends are realtors and the word will get out. Don't offer 5%,3% and then not honor your committment.

I understand that times are tough, but they are for us as well. Don't false advertise, offer what you are prepared to give.

And if you do not, do not be surprised if your name is all over the internet as the builder to avoid.

Posted by Palm Beach | Jupiter | Tequesta Real Estate | Sandy Pitchford on 05/23/2008 01:30 PM

Comments (5)

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5 Comments on What's up with Builders

Wow! That is a shame because the builders in our area are trying to take care of the REALTORS they have a understanding that most buyers these days want representation. I am sorry to hear that I work for 2 builders and we offer incentives and deals for all.

05/23/2008 01:37 PM

by Katie Landon Rehoboth REALTORS (Jack Lingo REALTORS)

Get it in writing before you draw up the contract, It can be a very simple fax to you stating the percentage, and a date they offer it to you then counter sign and return it.. that is a contract for services..offer acceptance and consideration..sue them if they don't honor it, you'll win. If that was the last deal you do with them get paid at least once.

05/23/2008 01:42 PM

by Steve Loynd, Alpine Lakes Real Estate Inc., Loon Mt, NH.

I have not encountered such yet. I had one close today with a builder and all went well.

05/23/2008 01:50 PM

by Gary Waters -Real estate agent Viera Suntree Melbourne and Rockledge FL (Century 21 Baytree Realty www.moving2brevard.com)

They must pay the agreed upon commission if they advertise in MLS. If you have Lennar in your neighborhood have you noticed they offer the buyer 1% less if the DO NOT have a Realtor! We need require builders who list homes in OUR MLS to follow proper procedure...or kick them out.

05/23/2008 01:59 PM

by Team DiMuria, Katy Texas Realtors (Prudential Gary Greene Realtors)

Are they listing the properties showing the "generous" commission? If so they are offering you an contract and it is in writing. I suppose unless in the private remarks they said that it was negotiable. If you are dealing with homes which are not listed, I suppose maybe you have to present them with an "open listing" or some such contract to get things pinned down.

Legally they should not be able to make commissions negotiable unless that was the agreement up front.

Alternately, you can have your buyers sign an agreement that guarantees you a minimum commission but why force the burden of dealing with the builder's misdeeds on your clients?

05/23/2008 02:28 PM

by Howard Goff -- Clark County Vancouver Real Estate (Realty Executives)

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