Builders' non-Realtor® Sales Teams

By
Real Estate Agent with North Idaho Dream Team

Do you feel that builders are doing their clients a disservice by not requiring their salespeople to be licensed Realtors®? I understand some of the reasoning behind it. Primarily the fact that they don't pay added commissions, MLS fees, licensing and continuing education costs ect. 

But when a buyer walks into a model home, and is helped by someone with no real estate education, limited knowledge of the local market, and not required to protect the buyer, is the buyer being best served?

In our local market, some builders hire Realtors® and some hire "salespeople." As a buyer's agent, I work closely with many of these men and women, and like and have a great working relationship with them. It is apparent however, when talking to those of the "non-Realtor®" variety that their knowledge and understanding of the service they are actually providing is limited.

What do you think of this practice? Why do you think some builders do it? Is it strictly a money-based decision? I myself wonder if builders switched to using Realtors® if their sales would actually increase, but can not prove it either way. How can the public be better educated about what they are walking into when they work directly with a builder. I know for a fact that I have gotten better prices for some of my buyers of new construction than they would have gotten going directly to the builder.

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Idaho....Famous Potatoes and a whole lot more.
Tags:
buyers
unlicensed salespeople
builders
realtors
buyer representation

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Anonymous #1
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It's pretty funny to hear these 'sales people' spout stuff that is so obviously wrong too.... ie "oh, these won't make good rental properties, no one would rent these" (all the while 6 on this particular street are managed by our rental company)!   And this one, "I think the builder should do this and this because this price range is moving really great right now", to which Chuck's response was "no, it's this price range and that price range that is moving really well, but the price range you are talking about is just holding steady".  The funny thing is, we have a great relationship with this builder, sell a solid % of their product, THEY KNOW OUR COMPANY, you'd think that they'd educate their sales staff better!

April 03, 2007 03:55 PM
Rainer
2,382
Erika Dewar
Zip Realty
So very true!
April 03, 2007 05:04 PM
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Rainer
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Chuck Ethridge

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