Ever felt like telling a prospect to take a long walk on a short pier?

Like when after three days of carting them around town, they announce they have decided to look at newly constructed homes without you.

You see a nice commission going down the drain, because you didn't know they might be interested in seeing new homes.

Your first reaction might be "Why didn't you tell me you wanted to see new homes?" as if it is their fault for you not thinking to ask them a new homes question during the qualifying process. Of course, you aren't going to verbalize this (I hope!).

But you can't respond like you feel like, because it could cost you thousands in commissions! This is one of those "unspeakable times" that your training didn't cover. You are about to see a nice commission check stay neatly tucked in a builder's pocket.

What makes this so difficult is that you know that this is your fault, not theirs. How could you qualify your buyers and not know they had an interest in new homes?

You don't get this kind of "feels bad" sales training and you won't see a video on these instances, because most training you will get is what you should say under ideal conditions with the ideal prospect.

No matter how many certificates, letters of recommendation, or years of experience you have, if you do not know what to say during these unspeakably difficult times, you won't make the sale.

Here is what you don't say and what you don't do:

"Why didn't you tell me you wanted to see new homes? I could show you new homes just as well as resales. Why don't we go see new homes together? It will not affect price, in fact I might be able to help negotiate a better price for you. It's not a problem."

Unfortunately, many agents merely hand the prospects their business card and ask the prospects to make sure they give it to the on site sales consultant. The purpose is to protect the agent's commission, not help the buyer. In many cases the agent will never see this prospect again.

This is a pretty sad attempt at protecting an unearned commission, in my opinion, and has had a negative affect on builder-Realtor relations through the years.

Don't tell the prospects you might be able to negotiate a better price with a builder. Unless it's a spot lot builder or a custom builder, it ain't gonna happen.

There is a ton wrong with this statement and attitude.

The reason the couple wants to see new homes may be a lost trust in their agent, but more than likely they want to see new homes without the agent, because they believe they can save the commission. The agent knows this and commented on it.

Do you think the prospects believe the agent? Say, "No." They don't. That is why is critically important that you help them understand the reason for the statement.

The good news is there is a good response for the agent that is true in most cases, especially in production home subdivisions.

If the builder lowered the price of new homes in a subdivision by the price of a commission he didn't have to pay, it will affect the appraised value of the homes in that subdivision. Most new homebuyers do not know this or consider this. They think they will save your commission by purchasing a newly constructed home without you.

What should you do?

Prove what you tell them.

Use this script instead:

"Mr. and Mrs. Prospect, I apologize for not recognizing the fact that you want to see new homes. I think it is a great idea, because it will give you some good price comparisons to the resales we saw today. (Once you agree with them, they will listen to what you have to say.)

"Let me tell you how it works in this market. When a broker registers a prospect at a new homes subdivision, the broker is paid a commission for the sale. If you visit the subdivision without a broker it does not mean the builder will automatically reduce his price by the commission he isn't paying me.

"And there is a good reason for it when you think about it.

"For example, if you purchased a $200,000 home with me, and the builder has a comparable home next door for $200,000 less the broker's commission, say for $194,000, this would have an immediate negative impact not only on your home, but on the value of all the homes the builder is yet to build in the subdivision.

"In fact, I would not advise you to buy in a subdivision where the builder does not protect price. Does that make sense to you? Part of the benefit of my services with a builder is the coordination I can provide after the contract is signed. Why don't we make an appointment to visit two or three communities tomorrow? "

By the way, the best time to use this script is during the qualifying process.

Try it. It makes sense. Your prospects will appreciate you and so will your local builders. I know from personal experience that this approach will help you grow professionally within the builder ranks and you will cash more commission checks.

Published: January 20, 2004

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David Fletcher has been a Florida real estate condominium and new homes broker for 30 years with more than $3 billion in new construction sales. In 2008, Keller Williams Realty International named him a "Lifetime Achiever." Along the way he has chaired the Florida Homebuilders Associaiton Sales and Marketing Council, trained thousands of general agents and on-site agents to work together, and was a featured speaker at the National Association of Realtors. Recently he founded New Homes Niche, a builder-certified co-broker training system "to meet the growing trend we see in short sale buyers moving to new homes for a lot of reasons." Call David at 407 234 2349, , and visit his website.