Your Trusted Real Estate Advisor

Previously I mentioned the notice most builders have in their sales office that says "If you are working with a real estate agent, they must accompany you on your first visit" or something similar. Why do they say that?

Builders are in the business to build homes and sell them.  If they can sell them by themselves, without having to pay a Realtor® a commission, they will make more money. That only makes sense.

Builders advertise their products in the newspapers, on TV, on their web sites, and in a variety of other ways. That all costs them money, but it is worth it if buyers come in because of the ads. They don't want to pay a Realtor® a commission if it was their ad that brought in the buyer, not the Realtor®. That also makes sense.

In addition, I know that some builders have had problems with a real estate agent coming it to say that Mr. & Mrs. Jones were his clients (because he has a Buyer Agency Contract with them), and he wants to be paid, even though he had nothing to do with their visit to the builder's site.

At other times, more than one real estate agent has come in claiming to have the same client. In every field there are those who will try to work the system and get something for nothing.

All this led some Realtors® and builders in the 1980's to start an organization in Denver (which has since spread elsewhere) called the Builder Realty Council (BRC).  The BRC developed a set of guidelines to help both entities.

Realtors® could know they wouldn't lose clients and income if their clients wanted to see new homes. Builders wouldn't have to pay a commission if their own marketing was what brought customers in.  It has worked well for over 20 years.

Builders advertise to Realtors® also. They want our business. That's why I received the email ad I mentioned last time. Somewhere around 70% of the new homes sold in the Denver area are sold with the cooperation of Realtors®. Without those sales, the builders would be hurting.

I am proud to be a member of the BRC. I'm glad there are rules that enable me to be paid for the work I do in taking clients to see new homes as well as resale homes.  This month I will close on two new homes with my clients, and another one next month. Cooperation with builders and the BRC has helped make that possible. It is a win-win-win situation for my clients, the builders, and me.