Dear Builder, Please Respect My Role

By
Managing Real Estate Broker with Magnolia Realty ~ Granbury TREC #547752

Dear Builder, Please Respect My Role

New Home

This post is in response to the home builders out there who flippantly try and cut real estate agents out of their hard-earned paychecks. Yes, this is being written in response to having to time and again fight for what is right in this business. And why on earth should we ever have fight for this?

 

We as real estate agents who are working tirelessly with our clients, don't work for free. There are many, many hours behind the scenes consulting, preparing, sending out market data, seeking the perfect home, and making appointments, that many do not see. When we make our job look effortless, it is only because of the immense amount of work behind the scenes that we are doing.

 

Today, I met a good friend of whom I had been consulting, sending properties to, and scheduled an entire day of homes to see.  After arriving at the first home early on a Saturday morning with 8 more homes scheduled to see, I am informed they have cut a deal with a home builder who will only do the deal without the real estate agent.

 

I stand there dumbfounded and feeling in a quandary. Of course I want my friend to get a good deal but are they really? How will they know if they do not have their own representation? Who will provide the comparable properties to them among the many other things they need to know?

 

I am angry that builders continue to pull these stunts. Sure I could create a fuss and call the builder, show them, my buyers representation, to no avail. This builder clearly does not see the value in clients having their own professional to represent them.

 

Buyers, you need your own representation. The builder is looking out for his own needs. Don't accept this from them. 

 

OK, I have this off of my chest. Please note that there are many great builders that I work with and would never do this. Thank you. This hopefully reaches those builders who are missing the big picture! When we all work together as a team, we all win. 

 

Breathe, release, forge ahead!

Posted by

     Magnolia Realty Granbury    

"Have you fully lived today?"

   Paula L. McDonald ~ REALTOR®

       Managing Broker ~ Granbury, Texas 

 936-203-0279 Direct

Selling Hood County and surrounding areas!

PaulaMcDonald@MagnoliaRealty.com 

      CNE

Houzz      

 John Maxwell

Farm & Ranch

 


          ABR                 Institute for Luxury Marketing                Institute for Luxury Home Marketing

 

 

Copyright 2017 Paula McDonald

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Rainmaker
3,528,282
Dorie Dillard CRS GRI ABR
Coldwell Banker United Realtors® ~ 512.346.1799 - Austin, TX
Serving Buyers & Sellers in NW Austin Real Estate

Good evening Paula McDonald ,

I'm so sorry this happened to you!! I do not find this here in Austin..the builders spend a lot of time and money courting Realtors® and will do everything not to cut us out! They often give us incentives 3% on the first sale 4% on the second and 5% on the third in the same year! we love out builders. This one needs to take a lesson..he could have way more sales by courting the Realtor®.

Feb 17, 2018 07:08 PM #9
Rainmaker
2,531,248
James Dray
Fathom Realty AR LLC - Bentonville, AR
Exceptional Agents, Outstanding Results

Morning Paula.

That builder would not last long in this area.  Especially the first time he gets sued for a variety of reasons.  

Feb 18, 2018 02:31 AM #10
Rainmaker
1,420,723
Yolanda Cordova-Gilbert
Richmond, TX

Paula,

 So sorry this happened to you, most builders want the realtors to be on their side. Just so you know I have been with 3 different builders and you would be suprised how many clients say if I cut my realtor out what is the price? Most of us tell them the price is the price whether you have a realtor or not. If they are willing to cut out their friend what will they do to me without representation.

Feb 18, 2018 12:27 PM #11
Rainmaker
1,420,723
Yolanda Cordova-Gilbert
Richmond, TX

Oh and by the way I have seen on a few occasions the same client come in with different realtors what do I do I call the realtors and let them know. 

Feb 18, 2018 12:28 PM #12
Rainmaker
47,058
House Value
Peter Mark - Holiday, FL
House Value Specialist

That happened to me when I was in real estate. I know how this feels, I lost about $7k in commission from my buyers who went around me directly to the builder even though I was procuring cause. Just my BIC would not want to fight the builder. You just have to move on! Real Estate is the hardest business out there that I know. 

Feb 18, 2018 02:07 PM #13
Rainmaker
998,167
Margaret Goss
Baird & Warner Real Estate - Winnetka, IL
Chicago's North Shore & Winnetka Real Estate

To have a builder like that in the community is a disservice to all buyers - as well as their agents. Does he have other properties - I'd quietly get the word out to other agents so they can protect their clients.

Feb 18, 2018 02:18 PM #14
Rainmaker
2,639,437
Kathleen Daniels
KD Realty - 408.972.1822 - San Jose, CA
San Jose Homes for Sale-Probate & Trust Specialist

Paula McDonald I am so sorry that happened. As others have stated, best to move on.  I will never understand why (1) some builders do that and (2) why clients, despite numerous and repeated requests/warnings to no go to new construction without us, still waltz in there like they know what they are doing and getting into.

Feb 18, 2018 02:56 PM #15
Rainmaker
562,525
Sharon Kowitz
Fonville Morisey-CRS-SRES-ABR-GRI-E-Pro-CREN Cary, NC - Cary, NC
Cary, NC Relocation Specialist ~ Buying or Selling

I am sorry this happened to you Paula McDonald.

During our Buyers market there were builders in our area who tried this trick but word got out in the Realtor Community pretty quickly which can hurt a builder and a good lesson to do a better job of educating our Buyers. 

Although there is no set buyers agency fee as we all know - but there is a builder currently in a sellers market who is offering a lower than average buyers agency  fee now.....We serve our buyers and wishes but it makes it hard to justify why this is a great builder when they are hurting their own reputation 

Feb 19, 2018 05:07 AM #16
Rainmaker
341,712
Gwen Banta
Sotheby's International Realty - Los Angeles, CA

I have come up against this myself, Paula.  I try to educate my buyers, but often the builder and the buyer refuse to look at anything but the bottom line. I always ask the buyer, "Would you use the same lawyer who represents someone you are suing"?

Feb 19, 2018 03:59 PM #18
Ambassador
3,668,548
Jeff Dowler, CRS
Solutions Real Estate - Carlsbad, CA
The Southern California Relocation Dude - Carlsbad

Hi Paula

So sorry to hear that happened, and it sure is frustrating, but I suspect most of us have experienced it. Here, builders require the buyer agent to be there on the first visit, you can't come in after the fact nor can you register your buyers in advance if you know they are or will be interested (at least I haven't run across that). I try to educate buyers about having me with them if they want to explore new construction but it does not always happen.

And many buyers do not get that the builder's rep works for the builder, and not them no matter how nice they might seem!!

Jeff

Feb 19, 2018 06:11 PM #19
Rainmaker
161,823
Mary Jo Quay
Remax Results - Edina, MN

In the Twin Cities, builders hold luncheons celebrating agent who brought them clients. Many do require an agent to sign a buyer in as having a relationship. There are agents who drop a buyer at the builder's door and say, "See you at closing in 6 months."  Some have no clue about the process, make the builder the bad guy if there is a glitch. If we educate the buyer on the process, what to expect, and stay engaged in the process, we have a win/win.  If your buyer already signed a contract with a builder, they were there before without you. Why did they want to see another 7 homes? 

Feb 19, 2018 09:02 PM #20
Rainmaker
376,875
Bruce Brockmeier
Internet Marketing Consultant to REALTORS® - Yorba Linda, CA
Coached By Crouch

It sounds like this buyer wasn’t your good friend after all.

I’m sorry to hear a builder and a buyer did this to you. :(

Feb 20, 2018 05:42 AM #21
Rainmaker
355,360
John Wiley
Right Move Real Estate Group- EXP Realty - Fort Myers, FL
Lee County, FL Real Estate GRI, SRES,GREEN,PSA

Most builders understand that they really need a real estate agent to bring customers to them. They understand that if they "cut" the customer a deal for not having an agent, they, the builder, will lose the benefit.

It really is so important for the Consumer to have someone represent them in the transaction.

Feb 20, 2018 06:30 AM #22
Rainer
174,735
Macy Babb
Re/Max Around Atlanta Realtor - 404-234-6166 - Cartersville, GA
Realtor, SFR, HUD/REO Certified

This happens around here alot as well... worst scernio was an agent that met me at the first showing, and my clients drove back by the subdivision a few days later to take a look at the amenities and ran into the agent at the pool/playground area... she actually tried to get them to sign a contract on the spot and without me (she could cut them a beteer deal without an agent)...luckily I had Buyers Agent Agreement and that particular client would have no part of it...but really this stuff should not happen

Feb 20, 2018 08:30 AM #23
Rainmaker
151,824
Corey Martin
Martin Presence Group - Ruston, LA
Real Estate and Management Solutions

It is unfortunate that this is a problem. People don't see how hard real estate agents work because we always try and make it seem effortless. Thank you for sharing. 

Feb 20, 2018 07:35 PM #24
Rainmaker
1,368,787
Amanda S. Davidson
Amanda Davidson Real Estate Group - Alexandria, VA
Alexandria Virginia Homes For Sale

Paula, I have had this happen a couple times, both with small builders and it's frustrating to say the least. Buyer and builder solely looked at the bottom line. That said, the large builders here I really love working with. They value us as much as we value them and it's a team effort to deliver the buyer with a smooth transaction.

Feb 21, 2018 05:24 AM #25
Rainmaker
1,412,699
Lyn Sims
RE/MAX Suburban - Schaumburg, IL
Schaumburg IL Real Estate

I'm not sure the builders actually get the whole buyers broker thing - oh, but wait they do! They don't want anyone asking questions of them or looking thru their one sided contracts.

Feb 21, 2018 07:13 AM #26
Rainmaker
906,089
Jan Green
Value Added Service, 602-620-2699 - Scottsdale, AZ
HomeSmart Elite Group, REALTOR®, EcoBroker, GREEN

I'm sorry to hear this type of behavior still exists.  A buyer is NOT represented by a builder who is only looking at their bottom line when cutting agents out of the picture.  A buyer seeking an agent in Granbury should look no further than you as their agent!

Feb 25, 2018 01:23 PM #27
Rainer
1,125
tarel a;i

We have found in recent deals where the builders press for closing and the driveway, landscaping, grading and seeding and even the deck aren't finished. Who wants to move into their new home without everything completed? Plus, the builder had in the contract that they had eight months to finish after closing. Definitely not a good way to do business

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May 12, 2018 12:06 AM #28
Rainer
1,100
Megumi Katou
Mr - Baxley, GA

We have found in recent deals where the builders press for closing and the driveway, landscaping, grading and seeding and even the deck aren't finished. Who wants to move into their new home without everything completed? Plus, the builder had in the contract that they had eight months to finish after closing. Definitely not a good way to do business

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May 13, 2018 06:22 PM #29
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Magnolia Realty ~ Granbury, TX 936-203-0279
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