There seems to be preconceived notions that real estate agents provide little or no value when consumers are purchasing brand-new homes; that there is no reason for a salesperson to be involved because they don’t do any work; that they simply walk into the builder’s office, sign a piece of paper, and hope the client falls in love with the model home. Well, nothing could be further from the truth.
Purchasing a new home directly from a builder without representation from a knowledgeable and experienced real estate professional is very dangerous for buyers. If your salespeople are experienced in helping clients purchase brand-new homes, they can provide a lot of value by helping consumers avoid mistakes and save significant amounts of money. They can offer buyers insights with comparables in the market, including what others have paid for homes in the same development. Buyer’s agents who are experienced in new-home construction will have information about the builder’s history. They will also be able to walk buyers through the details of the contract.
REALTORS® have a fiduciary duty to their clients. They must abide by the Code of Ethics and a strict code of conduct. Violating these codes can result in fines and suspension of license. Help your agents explain the advantages to buyers of having a REALTOR® throughout the home buying process.
Train and educate your salespeople on how to advise clients on new-home construction. Help them learn how to read blueprints and understand site design and the materials and methods of construction. Buyer’s agents can take the Certified New Home Specialist educational courses through the Council of Residential Specialists; brokers should consider taking these courses as well. This will provide a solid foundation on new-home sales. But nothing beats training or shadowing brokers or sales agents who have firsthand experience working with builders in your local market.
Here are three common misconceptions about working with builders and ways real estate practitioners can help buyers. Pass these on to your salespeople: