A Disturbing Trend Among Listing Agents

By
Real Estate Broker/Owner with Momentum Real Estate Group LLC GA BrokersLicense# 277342

Is there a disturbing trend among new construction agents, or is it just me?

My two latest encounters with new home sales agents have been strange.  Both were licensed by the Don't Blow Smokebuilder's brokerage (as in ABC Homes listed by ABC Homes Realty) and both "suggested" that my buyer offer a purchase price WELL BELOW the current list price of the homes with lots of seller concessions.

Now, is it my imagination or does this somehow compromise the fiduciary relationship between a seller and their agent?

Perhaps there is some "hidden" pricing parameters that these agents were aware of...

Perhaps they were in the know about up coming price reductions...

I might buy into that logic but for two, teensy, weensy problems...

One of those "suggested" offer prices was FLATLY REJECTED by the seller and we received a counteroffer, FIRM, at the list price.

Maybe the listing agent felt that once the buyer was hooked enough to write an offer, she would be able to reel them into paying FULL PRICE.

The second "suggested" offer fell on its face when the seller/builder FLATLY REJECTED the thousands of dollars of concessions and upgrades that the agent had all but guaranteed my buyer would be "no problem".

Look, my job is difficult enough without all of this unnecessary heartbreak and disappointment being heaped upon my clients.

Do me a favor, new construction agent, ZIP YOUR LIP!

Do me a favor, new construction agent, STOP BLOWING SMOKE UP THEIR BEHINDS!

Let me do my job and set MY CLIENT'S EXPECTATIONS appropriately. 

Let me do my job and counsel my clients on a well constructed offer that actually meets their needs.

Let me do my job while you concentrate on doing yours!

 

 

Posted by

55+ Realty Advisor  MyMomentumTea.com Logo 

Jenna Dixon
Associate Broker

55+ Realty Advisor | Accredited Buyer Representative |
Certified Skilled Negotiator

DRA Homes Real Estate
MyMomentumTeam.com

Email: JennaDixon@Outlook.com
Direct: (770) 374-4230


DRA Homes Real Estate
An Affiliate of Maximum One Realty Greater Atlanta
5041 Dallas Highway, Suite 700, Powder Springs, GA 30127
Office Phone: 770-919-8825 ext. 318

 

 

 

Comments (49)

Margaret Goss
Baird & Warner Real Estate - Winnetka, IL
Chicago's North Shore & Winnetka Real Estate

Definitely not fair.  I just sold a new construction townhome and the builder's agents told us no concessions and the price was the price.  At least we knew and went in not expecting anything different.

May 23, 2015 10:18 AM
Fred Griffin Tallahassee Real Estate
Fred Griffin Real Estate - Tallahassee, FL
Licensed Florida Real Estate Broker

Totally bizarre, and very questionable regarding ethics and fiduciary.  Are these Builders trying some sort of psychology on these Buyers? 

May 23, 2015 11:03 AM
Sam Shueh
(408) 425-1601 - San Jose, CA
mba, cdpe, reopro, pe

crazy.... I will try State licensing bureau...

May 24, 2015 02:12 AM
Tammie White, Broker
Franklin Homes Realty LLC - Franklin, TN
Franklin TN Homes for Sale

In our area, buyers are going to pay list price. We may be able to get options thrown in but I warn buyers to be prepared to pay for every option.

May 24, 2015 07:10 AM
Christine Donovan
Donovan Blatt Realty - Costa Mesa, CA
Broker/Attorney 714-319-9751 DRE01267479 - Costa M

Jenna - This doesn't make a lot of sense for them to do this as it doesn't help them or their seller.

May 24, 2015 01:56 PM
Michelle Grunberg
eXp Realty - Ijamsville, MD
When Honesty, Integrity and Loyalty Matters!

This is very strange way to sell new construction. It is also very unethical. I would share the name of this builder with all that you know

May 25, 2015 02:21 AM
Jenna Dixon
Momentum Real Estate Group LLC - Marietta, GA
55 & Over | New Constructions | Horse Farms

Janis Borgueta I will continue to hold out hope that one day the ethical will out number the "questionable."

Nina Hollander I certainly hope you're right, I cannot afford all of these helpful listing agents.

Marie Story I so agree!  There is nothing more frustrating that wading through the opinions and emotions of an overly vocal co-broke.

May 26, 2015 12:50 AM
Jenna Dixon
Momentum Real Estate Group LLC - Marietta, GA
55 & Over | New Constructions | Horse Farms

Michael Setunsky desperation, perhaps but certainly a waste of everyone's time.

Richie Alan Naggar author of books on Life-Love-Intimacy-Purpose I don't doubt the pressure.  We all face it but false promises do no one any good at all.

Annette Lawrence I would say that based on the volume they are doing, it is, in fact NOT working!

May 26, 2015 12:54 AM
Jenna Dixon
Momentum Real Estate Group LLC - Marietta, GA
55 & Over | New Constructions | Horse Farms

Mike Cooper the motivation is a mystery to me. 

Paula McDonald we ran!  My client was SO angry that he refused further negotiations.

Kathleen Daniels It's so unfortunate because my client loves the builder and the community.  Hoping for a suitable resale to pop up.

May 26, 2015 12:57 AM
Jenna Dixon
Momentum Real Estate Group LLC - Marietta, GA
55 & Over | New Constructions | Horse Farms

Mary Ann Daniell, Realtor Killeen Fort Hood Harker Heights Copperas Cove Temple Belton One of the builders has a very good reputation and produces quality products, all of which are being undermined by the agent's practices.

Margaret Goss I've heard that many times, had agents nearly REFUSE to write anything less.  Sometimes you get more than you thought, sometimes not.  But I would rather hear that than unrealistic over-promising.

May 26, 2015 01:00 AM
Jenna Dixon
Momentum Real Estate Group LLC - Marietta, GA
55 & Over | New Constructions | Horse Farms

Fred Griffin perhaps some new fangled sales psychology at work.  It did not have the intended effect!

Sam Shueh that may be a call that I make!

Tammie White I remember those days!  And in some parts of town that is still the case but we still have pockets of flexible terms.

May 26, 2015 01:03 AM
Jenna Dixon
Momentum Real Estate Group LLC - Marietta, GA
55 & Over | New Constructions | Horse Farms

Christine Donovan it made no sense to me or my client who WOULD have been willing to pay more had that not felt utterly deceived.

Michelle Grunberg I definitely will share within my circle.

May 26, 2015 01:05 AM
Chris and Dick Dovorany
Homes for Sale in Naples, Bonita Springs and Estero, Florida - Naples, FL
Broker/Associate at Premiere Plus Realty

I have never heard of that.  Telling secrets out of school, I guess.  Here it's cut and dried and here is the mega list of upgrades you may purchase and here is the price list for those upgrades.  If it's not on the list you can't do it until you are the owner.

May 26, 2015 07:31 AM
Jenna Dixon
Momentum Real Estate Group LLC - Marietta, GA
55 & Over | New Constructions | Horse Farms

Chris and Dick Dovorany it's a strange and ill fated practice for use on the savvy home buyer.  Spending hundreds of thousands on a home requires faith and trust in all parties, starting out with a lie is no way to begin.

May 26, 2015 10:29 PM
Nicole Doty - Gilbert Real Estate Expert
Zion Realty - Gilbert, AZ
Broker/Owner of Zion Realty ZionRealtyAZ.com

How strange. I don't believe I've ever encounted that issue with new construction agents before. They are usually trying to upsell my buyers in to a more expensive lot or elevation not tell them to lower their asking price. Weird.

May 27, 2015 03:02 AM
Ginger Harper
Coldwell Banker Sea Coast Advantage~ Ginger Harper Real Estate Team - Southport, NC
Your Southport~Oak Island Agent~Brunswick County!

Be careful.  Your reputation is what you continue to feed yourself with.  Do not get involved with anyone that can hurt your good name.

May 27, 2015 10:51 AM
Jim Paulson
Progressive Realty (Boise Idaho) www.Progressive-Realty.info - Boise, ID
Owner,Broker

I had to double check to see if you were in my area, since I have seen that on occaison too.  The onsite agent said "they tried their best to get it accepted but couldn't".  I called the other broker to let them know of the agents tactics. 

May 28, 2015 01:41 AM
Jenna Dixon
Momentum Real Estate Group LLC - Marietta, GA
55 & Over | New Constructions | Horse Farms

Nicole Doty - Gilbert Real Estate Expert it was a weird experience, I am used to encountering what you describe.

Ginger Harper fortunately, my reputation is not at stake in this situation.  The listing agent took it upon herself to communicate the information directly to the buyer.

May 29, 2015 02:36 AM
Jenna Dixon
Momentum Real Estate Group LLC - Marietta, GA
55 & Over | New Constructions | Horse Farms

Jim Paulson maybe your approach is the best way to go.

May 29, 2015 02:37 AM
Ginger Harper
Coldwell Banker Sea Coast Advantage~ Ginger Harper Real Estate Team - Southport, NC
Your Southport~Oak Island Agent~Brunswick County!

Good.  I am glad..

 

May 29, 2015 11:24 AM

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