The trend is undeniable - new homes are gaining on existing homes as the preferred choice of homebuyers. According to the U.S. Commerce Department, new home building is at a ten-year high, just behind the all time high of January 1989. New homes garner 20% of the market share, according to the National Association of Home Builders. The Employee Relocation Council states that most relocating families prefer new over existing homes. And the National Association of Realtors' most recent survey says that over 70% of buyers prefer to work with a Realtor. Looks like Realtors and builders have more reason to work together than ever.

There's just one little hurdle to overcome - many builders think they don't need Realtor representation - but they welcome Realtors who show their properties to clients. In a seller's market, traffic comes to builders more easily, but in a buyer's market, things change. Builders then become reliant on the representation of a real estate broker.

The large real estate broker has a number of advantages to offer the builder - a large relocation network among national and international brokers, as well as the word-of-mouth resources of its brokers and agents. It is the grapevine created by agents that often results in a ready buyer.

The important thing is that the relationship between the builder and the Realtor is ongoing and not initiated and maintained only during downturns in the market. This is particularly important in markets with a large new home building market share, such as Dallas/Fort Worth, one of the top three relocation destinations in the nation.

That is why a Builder-Realty Council can be an important laison. Since the Builder-Realty Council International was disbanded, local Builder-Realty Councils, continue to serve the builder/agent community. The idea behind the council is to develop a mutually profitable relationship between builders and real estate agents.

Mary Frances Burleson, president of Ebby Halliday Realtors, one of two largest independent in the Texas market, says,"I like to get face to face and know who I am doing business with. Then the builder knows me and can trust me. An organization like the BRC is a perfect way to start communicating on a first-name basis."

A BRC has no formal affiliation or subordination either to the local Home Builders Association or to local Real Estate Boards. It membership includes both Builders and Agents, as well as other housing professionals who are active in their respective trade organizations and who promote good communication within those groups.

At the heart of the organization are principles that are designed to encourage agents to sell new houses and builders to pay the agents to do so. Under the guidelines the builder's main responsibilities are to co-op at a stated fee established by the builder, and to establish a consistent price policy which does not favor the buyer who comes back without the agent. The agent's responsibility is to accompany and register the buyer on the buyer's first visit and to maintain a relationship with the buyer.

According to James Buchanon, 1998 president of the Dallas BRC, builders who join a BRC benefit in the following ways:

• Working cooperatively with BRC real estate agents is often the best or only way to effectively reach today's new home buyers.
• BRC agents who understand co-op etiquette serve as a direct route to move-up and relocation buyers.
• BRC Builders can target professional, experienced BRC agents to quickly more standing inventory.
• Member builders and agents work together with confidence to facilitate the sale.
• Participating agents bring more qualified buyers to the builder.

Agents who join a BRC also benefit:

• Member Agents who work with builders make more commissioned sales where an active BRC chapter is established.
• Member agents are made aware of inventories of near-ready and ready-to-move-in homes, perfect for more-up and relocating buyers who need a new home quickly.
• Many home buyers prefer the designer features of new homes and the recreational amenities of new master-planned communities and want to work with a recognized professional in new home sales.
• Participating agents become better acquainted with builders and become more comfortable selling new homes.

When a BRC is involved, everybody benefits - builders, agents, lenders, suppliers and homeubyers.

If you are interested in starting your own BRC, contact James Buchanon for additional information at 972-661-9026.

Published: July 28, 1998

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Blanche is a renowned author of five real estate books. Her newest, Bubbles, Booms and Busts: Make Money In Any Real Estate Market, McGraw-Hill, was rave-reviewed by The New York Times. She was also selected from hundreds of real estate experts to contribute to Donald Trump's book, Trump: The Best Real Estate Advice I Ever Received: 100 Top Experts Share Their Strategies, Rutledge Hill Press, and is featured on page 68. Order Now Review - Honors In 2006, Blanche was selected among scores of candidates to author two consumer real estate guidebooks for the National Association of Realtors: The NAR Guide to Home Buying, and The NAR Guide to Home Selling, Wiley & Sons. She is currently planning two new books for the NAR and its members.       Known for her keen insight into real estate industry issues and for her ability to make complex subjects easy to understand, Blanche is a sought-after keynote and continuing education speaker. Real estate organizations from MLSs, to brokerages, to franchisors, to associations hire her to provide up-to-the-minute analysis of real estate industry news and advice on how to improve revenues. Her passionate delivery, peppered with stinging wit, is a huge hit with audiences and fans. Don Klein, CEO Greater Nashville Association of Realtors, Blanche Evans, Richard Courtney, president 2007, GRAR "The GNAR membership meeting last week featured Blanche Evans as the keynote speaker. Her comments and insights resonated extremely well with those in attendance and we have had many requests for copies of her PowerPoint Presentation. She was a terrific part of the membership meeting and convention program!" - Don Klein, CEO Greater Nashville Association of Realtors Coverage from WSMV, Nashville - 8-14-2007 That Interview Guy - Get Inside The Head Of Today's Generation 2007 AE Institute Session - To purchase 2006 AE Institute Session - Parts 1 2 3 4 5 6 7 8 9 HouseValues Mastermind call - Parts 1 2 Blanche's fireside chat with Jeremy Conaway, HAR - Click here. For more articles by Blanche, click here.