I feel like a Volunteer!!!

By
Real Estate Agent with Sibcy Cline Realtors®

   I have been working with a buyer that needs a V.A. Loan. We have been looking at some new construction homes and made an offer on one. The property went into multiples and we were not willing to pay the most for the property. Well the pre-approved loan for the other party fell apart and I received a call about it.

 In the mean time my client went to a builder about 10 miles away. They were talking with him and he mentioned that he was working with me. They told him that because  he was there without an agent he had a choice. He could register me or Use their Friends and Family which would save him 3% on the cost of the home.

 What do you think of the what the builder is doing under these circumstances? 

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Rainmaker
219,919
Antoinette Scognamiglio
Coldwell Banker Residential Brokerage - Mountain Lakes, NJ
GRI, ASP - Homes for Sale - Jefferson Township NJ
This illustrates exactly why real estate is frequently described as a "cut throat" business.  It's good that the buyer has reported the discussion back to you.  It would benefit him to know that the builder is only working on his own behalf and essentially, the buyer will have no representation.  Thus, the 3% he could "save" may work out to a loss in the long run.  Go get 'em James!
Jul 12, 2007 12:01 PM #1
Rainer
78,961
Mike Parks
Residential Building Inspectors - Circleville, OH
Inspector

James

Tell EVERY one of your Realtor friends of things like this and have no one show his properties.

Business is business. Now show him what business is business means.

Jul 12, 2007 03:03 PM #2
Rainmaker
357,968
Donna Yates Real Estate - serving
ReMax Town and Country - Blue Ridge, GA
North Georgia Metro & Mountains

Thank goodness for an honest buyer.  I applaud your buyer because 3% can be very tempting.  I am learning to build a network of reputable lenders, builders and other agents and then try to work within those groups.  I've heard real estate referred to as "cut throat" also and realtors seem to be viewed as rich and greedy which really bothers me a lot.  A few bad people in the industry just make our jobs that much harder.  I guess temptation becomes too much for some and greed overpowers.  Best to you.

Jul 17, 2007 09:20 AM #3
Rainmaker
42,186
Margaret Rodgers
Keller Williams Realty - Karns, TN
Realtor, AHWD
Builders do this ,we all know it some will try to get buyers away from their own list agent so they do not have to pay them
Jul 30, 2007 01:43 PM #4
Rainer
33,105
SHAUN WREN
LICENSE IS NOT PLACED - Lakeland, FL
It is illegal in Florida. But,Builders do it everyday and get away with it. They form an LLC and share the profits. HMMMM.
Jul 30, 2007 09:46 PM #5
Rainer
211,971
Carol Smith
Casmi Photography - Mebane, NC

James - this reminds me of a situation I encountered here a few months ago.  I took my clients (from another state) to a builders model home for a preview.  This was after I had made a trip over there alone to scope it out and talk with the builder's rep.  I walked in with the clients in tow and they were very impressed with the layout and the feel of it all.  They said they would think it over and we left.

When we were back in the car my buyer handed me the builders card and said, "You should keep this.  He told us to give him a call when we were ready to buy and save a little money.  But since he's being so shady we would like to look at something else."

So, his attempt to sway them into savings  backfired on him.  They still have not purchased anything, but they are very actively trying to sell their home and get in position to complete the deal.  

Now why would he do this?  Wouldn't it have made more sense to convey that message to me instead of them?  After all, I may well have brought him enough buyers to take up the remaining lots.  But he's out of the running now.  I don't focus on his development when I have a buyer looking at new construction because of his lack of business sense. 

Aug 02, 2007 07:23 AM #6
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Rainer
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James Gordon

REALTOR, PBD SFR SRS
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