One of the unique organizations of its kind, the North Texas-based Builder Realty Council is dedicated to improving the working relationship between builders and Realtors. Meeting three times a year to discuss industry issues, the Council is comprised of professionals in real estate, the mortgage and title industries, and builders.

Ebby Halliday president Mary Frances Burleson was asked to speak at the organization's spring meeting on the subject of smoothing the sale of new homes. As head of one of the two largest real estate firms in the state of Texas, with over 900 associates and 100 employees, Ms. Burleson spoke with authority to a packed meeting hall. She addressed such issues as the differences between marketing new homes and older homes, the advantage of buying a new home through a Realtor and how to untangle the Realtor/builder/buyer relationship.

"Good Realtors don't consider other brokers to be competitors," says Ms. Burleson."We are cooperators. When the market is good, everybody is friends, but when the market gets tough, that is when you need your friends the most." She continued by saying that the market was very good for sellers, which means that some builders may feel that they don't need the services of a Realtor, but that is exactly when they do, according to Ms. Burleson.

"The main difference I see is in the buyer's expectations. It is much easier to make comparisons of new homes, and buyers tend to expect perfection because the homes are new," she says.

There are differences in selling a new home versus an older home. For one thing, there are often no comparables on some builder products because they aren't listed in the Multiple Listing Service. Because there is such a wide variance in custom homes, it takes a knowledgeable agent to know the value of the land and the value of construction.

When a Realtor brings a buyer to a new home, the buyer is most likely prequalified and at an urgency level that is close to making a buying decision. "When you go into a builder's model home, and there are other buyers looking, the builder knows that the buyer accompanied by an agent is serious."

She advises agents who are with buyers to take a back seat upon meeting the builder or builder representative and allow him or her to make the presentation of the home and the community. This is especially helpful if the buyer is a transferee on a "screening" trip.

"There is no way a buyer can look in the paper, read all the ads, visit all the communities and know what they are doing," suggests Ms. Burleson. "A Realtor can review the criteria that a buyer provides in terms of wants and needs, and narrow the communities, builders and homes to the ones that come the closest to meeting the most needs."

Can buyers get a better price on a home after viewing it with a Realtor? Burleson cautions that sometimes buyers go back to look at homes without the agent under the mistaken belief that the builder will discount the home to save on the agent's commission.

One of the goals of the BRC is to discourage such practices. One builder, Stephen Brooks with Lennar Homes, told Burleson that his company and many others he knows will not offer discounts.

"The Realtor is a gift. The customer is one time, but the Realtor is forever. We do not give discounts and we let the customer know that while they are with their Realtor." Lennar Homes maintains a visitor log that can be referenced back six months to a year, assuring that the agent is called when the buyer returns.

Ms. Burleson also discourage the building community and Realtors present not to offer or accept gifts, trips and bonuses to bring customers to particular developments or homes.

"We are fiduciaries," she states. "That means as Realtors we do what is in the best interest of the clients and customers, not ourselves."

Listening with interest was Realtor and buyer's agent Don Chandler (RE/MAX) who agreed with Ms. Burleson's approach to maintaining the integrity of the builder/buyer/Realtor relationship. "She is absolutely right. The buyers can easily see the positives, but it is our job to focus on the realities. The best home for any buyer is the one that meets their needs."

Published: June 3, 1998

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