Selling new construction requires zero knowledge?

By
Services for Real Estate Pros with Marte Cliff Copywriting

Today’s email brought an article about the number of agents who come into the business and get out within a year or two. house under construction

We all know that there are many reasons for their failure, including the fact that some got into it without realizing they would need to work hard.

Without the hard work, guidance, education, etc. many new agents make little to no money, so they drop out.

This writer stated the obvious - learning to list or sell existing homes is work. Agents have to learn a lot.

Then he went on to say that new agents should get a start by introducing buyers to new construction.

Why? Because (according to him) you don’t have to know anything.

All the agent has to do is find the buyers, accompany them to a builder’s model home, and turn them over to the on-site sales agent.

The agent doesn’t need to know anything about construction, or purchase and sale forms, or finding a good lender, or … anything.

He says you don't have to do the work or share the commission, so you can easily make money and thus stay in the business.

I was shocked.

Who, then, represents the buyer?

  • Who has his/her best interests in mind?
  • Who points out that the specified furnace or roofing materials might not be the highest quality?
  • Who helps the buyer negotiate the price of upgrades?
  • Who suggests that home inspections during the construction phase are wise?
  • Who mentions that it's a good idea to compare rates and fees between lenders?

 

Would that be the on-site agent working for the seller? Somehow I just don’t believe that one.

I’d love to hear your thoughts…

 

Image courtesy of vectorolie at FreeDigitalPhotos.net

Comments (20)

Barbara Todaro
RE/MAX Executive Realty - Retired - Franklin, MA
Previously Affiliated with The Todaro Team

that's horribe Marte Cliff when an agent did that on one of my new home subdivisions, I loved it, as the listing agent.... I REPRESENTED THE BUILDER.... and once I was one on one with the buyer who had no representation, I loaded that home with upgrades and extras....I sold every one of the items that the builder made the greatest profit on....I WAS DOING MY JOB AND I DID IT WELL....ALL OF MY BUILDERS LOVED IT WHEN I HAD A BUYER TO WORK WITH....

Sep 28, 2020 09:55 AM
Marte Cliff
Marte Cliff Copywriting - Priest River, ID
Your real estate writer

Barbara Todaro You're the first person I thought of when I read that. I recall that before you began selling new construction, you took courses in construction and became certified as a builder.

I just couldn't believe that this "trainer" was giving this kind of advice.

Sep 28, 2020 10:38 AM
Nina Hollander, Broker
Coldwell Banker Realty - Charlotte, NC
Your Greater Charlotte Realtor

Hi Marte... I do a lot of new construction sales... have four new construction contracts now and a fifth to come shortly. If you are goiong to properly represent a buyer in new construction you better know a lot about the process, the builders, etc.

Sep 28, 2020 10:38 AM
Marte Cliff
Marte Cliff Copywriting - Priest River, ID
Your real estate writer

Nina Hollander I absolutely agree. Handing "your" buyer over to the builder's rep is not fulfilling the duties of a buyer's agent. Not even close.

Sep 28, 2020 02:04 PM
Ron and Alexandra Seigel
Napa Consultants - Carpinteria, CA
Luxury Real Estate Branding, Marketing & Strategy

Marte,

So many people can talk and talk and say nothing, and their ignorance shows big time. A

Sep 28, 2020 02:09 PM
Nick Vandekar, 610-203-4543
Long & Foster Real Estate Inc 610-225-7400 - Devon, PA
Tredyffrin Easttown Realtor, Philly Main Line

NVR locally here in PA does not compensate well, they do not want buyer agents representing the buyer and questioning anything. So far they are selling their homes like hotcakes, but i wonder how long it will be before we see law suits due to the buyers thinking theyu are being represented and not liking the results.

Sep 28, 2020 07:01 PM
Marte Cliff
Marte Cliff Copywriting - Priest River, ID
Your real estate writer

Ron and Alexandra Seigel Yes, and I feel that this "trainer" has done worse than that. He's giving rotten advice to new agents who need all the good advice they can get.

Nick Vandekar, 610-203-4543 I can see that happening, when people find out they've been duped.

Sep 29, 2020 10:18 AM
Anna Banana Kruchten CRS, Phoenix Broker
HomeSmart Real Estate BR030809000 - Phoenix, AZ
602-380-4886

Hi Marte - I know this happens but geez.....that is a terrible practice for a newbie agent. This guy is a trainer? He's fired!  I think this is going on more than we realize that agents are not getting the proper training after they get their license.

Sep 29, 2020 12:49 PM
Carol Williams
Although I'm retired, I love sharing my knowledge and learning from other real estate industry professionals. - Wenatchee, WA
Retired Agent / Broker / Property Manager

All I can say is... OMG! 

Sep 30, 2020 06:40 AM
Marte Cliff
Marte Cliff Copywriting - Priest River, ID
Your real estate writer

Carol Williams My sentiments exactly.

Oct 01, 2020 08:48 AM
Marte Cliff
Marte Cliff Copywriting - Priest River, ID
Your real estate writer

Anna Banana Kruchten CRB, CRS AZ Top Banana! It's bad enough to get no training, but to get wrong training is far worse.

Oct 01, 2020 09:48 AM
Anna Banana Kruchten CRS, Phoenix Broker

Both are equally destructive to the public.  Not acceptable.

Oct 01, 2020 11:26 AM
Kris Collis, Associate Broker
Smart Way America Realty - East Stroudsburg, PA
Professional Results you Expect 570-801-5525

Marte, I hope the "trainer" was not a broker.  Talk about incompetent advice.  And to put such nonsense contrary to professional business practices in writing in an email.  His subject line should be titled, "How to Fail in Real Estate."

Oct 02, 2020 12:19 PM
Grant Schneider
Performance Development Strategies - Armonk, NY
Your Coach Helping You Create Successful Outcomes

Good morning Marte Cliff - why then would I seek this agent.  Why just go to the models myself.  I was represented when I select my agent for a new house and glad I was.

Oct 03, 2020 03:33 AM
Kat Palmiotti
406-270-3667, kat@thehousekat.com, Broker, eXp Realty - Kalispell, MT
Helping your Montana dreams take root

My thoughts are that the person who said that proved he didn't know anything.

Oct 03, 2020 05:23 AM
Rocky Dickerson
Realty One Group - Las Vegas, NV
Superior Service!

Marte Cliff , so very true.  I guess some people look for an "easy" way even though it's not the right way.  Great blog!

Oct 03, 2020 08:13 AM
Marte Cliff
Marte Cliff Copywriting - Priest River, ID
Your real estate writer

Kris Collis, Associate Broker I don't know if he was a broker or just a person "teaching" agents. I should have paid more attention to who he said he was, but I was so shocked by the message that I didn't.

Grant Schneider It sounded to me like the customers wouldn't have a clue - they would think they were being represented by a buyer's agent.

Oct 04, 2020 01:57 PM
Marte Cliff
Marte Cliff Copywriting - Priest River, ID
Your real estate writer

Kat Palmiotti He sure proved that he cared nothing for new home buyers!

Rocky Dickerson Yes, sadly, there are plenty of people who prefer the easy way.

Oct 04, 2020 01:59 PM
Jeff Dowler, CRS
eXp Realty of California, Inc. - Carlsbad, CA
The Southern California Relocation Dude

Marte:

And I wonder how many new agents would take that advice to heart, believing it to be sound?! Scary. New home buyers often don't realize how the process works and who represents them, and the last thing they need is someone working with them who also doesn't know.

Jeff

Oct 04, 2020 04:38 PM
Roy Kelley
Realty Group Referrals - Gaithersburg, MD

This is very good information for those new agents who have received bad advice.

Oct 07, 2020 10:33 AM
Marte Cliff
Marte Cliff Copywriting - Priest River, ID
Your real estate writer

Jeff Dowler, CRS I agree. It's scary for the buyers and scary for the agent who will be building a terrible reputation.

Roy Kelley Thanks. I hope it helps someone.

Oct 08, 2020 09:29 AM