DANGER, WILL ROBINSON!!!!. . . .GET TO THAT NEW HOME BUILDER BEFORE THE BUYERS WHO "AREN'T INTERESTED IN NEW CONSTRUCTION" DO!

Lenn

I agree with Ann we have to cover all the bases, and don't forget about builders.

Good luck and success.

Lou Ludwig

Lenn... you mentioned many things in your post that are very important... but one that sticks out in my mind is as follows:

"Beat them to the punch and get there, to the new home builder sites before the buyers do."

HA!  Having a previous working relationship with as many new home on-site builder reps is extremely important.  If you are driving around with clients, and they mention a certain builder... the fact that you can rattle off lots of information about that builder and that specific neighborhood is excellent reinforcement that you truly ARE the area expert in real estate.

@ Laurie in #15:  You mentioned about builders who prohibit late registrations.  I know several builders in the DFW market area who absolutely require that all buyers who sign registration cards upon visiting... that the specific buyer be entered into the builder marketing data base.

If... a specific builder rep puts an agent on a contract... and that agent is not mentioned on the registration card filled out by the buyer... that on-site builder rep will be FIRED.  I have seen it happen.  It is not the norm, but I have seen it happen.

I have helped many sellers short sale their houses that they bought directly from the builder without Realtor representation. They often complain that;

1. They didn't understand the financing they got into.
2. Didn't realize how small or dysfunctional their lot would be after the subdivision would get built up.
3. Didn't understand how certain aspects of the floorplan would hurt resale value.
4. Other problems that a competetent buyer's agent would have helped them avoid.

Bottom line: Always tell your buyer how important it is to their finances to have the right Realtor on their side.

Lenn, Great post. The easiest money I have made was to register a buyer with the new home builder. But I guided them through inspections and walk through inspections. Also I negotiated upgrades for them. But the kay is  you register your self and the client with you before they visit it.

I didn't know there were so many contingencies around an agent/builder/buyer relationship.  But, I'm not an agent!

Amen, Lenn! Been there, done that and shed the tears. Excellent idea! I also try to work with one sales person per community so I can make a phone call, shoot an email and fax in a registration form.

Lenn

You are a font of knowledge! I hadn't thought of this and will start my search for active homebuilders today! Thanks for the heads up!

One of my very first buyers looked at new construction. I learned this lesson early on! Thanks for the reminder.

Lenn - Fantastic idea, I'll pass this along to others on my team. I haven't had this happen to me in a long time, but the market is changing here, and you never know.

Lenn,

You amaze me!  You are a spring flowing free with knowledge & common sense!  It is obvious that you learned from your mistakes [and I bet you also learned from the mistakes of others].  Thank you for you presence--you can always be found "standing in the rain."

Excellent points about homebuyers and builders.  I spent 25+ years in mortgage finance, and could write a book on buyers who fell for the "you don't need an agent" line; and the sucker punch, "we will pay your closing costs if there is no other agent commission involved."  A smart builder would not want to alienate the REALTORS® in his community--I've dealt with the tricky-dicks, and honest johns.  My experience is that if they attempt to avoid paying commissions to a REALTOR® legitimately representing a client, the the client better look out: more tricks are coming.

Some of the most honorable members of the housing industry wear the builder cap, and are forced to bear the insult of being in the same business as Tricky-dick.  We REALTORS® understand, and come to know the difference.  We just hope our buyers learn from others' mistakes rather than their own.

Lenn, I have lost two buyers this way since 1992. The first one said they could not wait for new construction and the other one said they did not want to come out of the area though I told them about the new construction . Then they visited a friend in there one weekend and went into the models and put a deposit.

I have hit the suggest Button.