Monday, 20 November 2017

Feedback WANTED!

Written by Posted On Monday, 06 November 2017 19:03

Feedback WANTED from Real Estate Agents & Brokers on How You Look at

Needing to Register Your Clients Name at a

Home Builder’s Model Home!

After 30+ years of experience as a real estate broker and home builder I have specific opinions on real estate.

It is my view that changes are needed to get real estate professionals and home builders to work together to eliminate common problems that exist when a real estate broker visits a subdivision with his or her home buyer prospect. In many large subdivisions, a home builder has his own group of sales representatives to man finished model homes and to service buyer prospects (drive by prospects or prospects brought to the subdivision by a real estate broker). The main purpose of the builder’s sales representative is to circulate information, communicate with prospects, and promote new home sales for the home builder.

It is fairly common that a real estate broker, trying to show new homes in a subdivision, is greeted by a builder sales representative who requests that the broker register his/her client (so the broker can receive a portion of the sales commission). Unfortunately it is a common practice for the builder’s sales representative to take over the broker’s prospect to communicate, present construction details and options, and generate a sale by drafting a Purchase & Sale Agreement to be signed by both the buyer and home builder.

From my viewpoint, there are problems involved in this scenario: (1) A real estate broker usually has spent a considerable amount of time with a prospective client to develop a good working relationship; (2) When a broker needs to register the name of a client it can be quite cumbersome as he/she can lose client rapport, client control, and even lose a potential sales commission; (3) Most good real estate brokers are focused on taking care of their prospects, by communicating and coordinating details, and turning them over to a builder’s sale representative means he/she is now out of the picture; and, (4) Most qualified brokers are not anxious to step aside as it is easy to feel like you are not doing what you should to earn your sales commission and you probably won’t get a future referral from this client because you stepped out of the picture through no fault of your own. To a client it can look like you, as a broker, have been pushed aside by the home builder because you lack the knowledge or skills necessary to generate a sale and represent the builder properly. This may not be true in all cases however when a real estate broker is removed from working with a home builder in the sales process it presents an appearance that the broker is just not qualified. In my view a much better approach is when builder and broker are on the same page – working as a team, with no specific requirement to register or turn over a client, to serve the consumer (the home buyer prospect).  

FYI, we are asking for input from active real estate professionals so we can relay this important information to home builders seeking information.

Please Email your feedback, viewpoints, or comments on this subject to: This email address is being protected from spambots. You need JavaScript enabled to view it..

ANY NAMES IN RESPONSES WILL REMAIN ANONYMOUS! 

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