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I agree and the happens here. They want us and then turn against us.

I can't believe the builders would do that! You're correct about leaving buyers with not protection. But it shows how stupid the builders are. What real estate agent is going to bring their buyers to a builder who is gong to try to cut them out? I would just take my buyers to a different builder.

Nancy Moeller  We had a person call today and tried to pick our brain and then actually told the the name of the builder.  Garbage product!

Lisa Hill (Daytona Beach REALTOR®)  They do it all the time.  However, most friends of mine just pass the word around the office and all my agent friends!  Actually it is a lot of fun!  It kind of backfires on those builders in a big way!

Jim, Don't those guys have any brains at all? Good luck getting your message through to the buyers.

Bill Roberts

Bill Roberts - "Baby Boomer" Retirement Planning   I'd love to get my message through to builders also!

Jim,

I'm up in Cherokee County and have read (3) different articles about these very same types of builders...who are now going out of business.

Thanks for the good read...and better yet, taking a strong stance against these unethical practices.

Hi, Jim

Good post.  We've had a couple of builders trying that little trick here but so far it hasn't worked all that well.  Interestingly it's the builders that have the worst reputations for quality that are trying to push houses that are a good 15-20% over market value.

James Coogan--Ellijay, GA REALTOR®  Thanks!  I think we need to let the builders know that we know what they are doing!  I once had a buyer of mine that was registered in a subdivision solicited by the on-site agent to drop me!  She had faxed him a contract!  I asked that he foreword it to me, and noticed the property they wanted to sell was in a FLOOD ZONE!

Fairbanks, Alaska Realtors Jesse & Kathy Clifton  Years ago I was working very hard with one particular buyer that all of a sudden dissapeared off the radar.  This was the scenario..she called me up hysterical that she wrote an offer with a builder, put up earnest money wrote a contract with him, and a few days later he wasn't returning the call.  When I asked her how much money she had placed down the answer was she put down 60K!  He filed for bankruptcy, and she lost the money!

Jim,

I have seen this done as well by new home agents. They are in opinion the exception to the rule. Most new home agents I have met and worked with "in San Diego" have been very reputable and have not done this that I know of. I guess with things tighter more of them might resort to this. I hope not.

Mike Lewis

Jim - That is amazing! Talk about putting the noose around your head. What do these builders think is going to happen to their reputation? I guess they are not thinking about the future. Some of them must be really desperate.

Mike Lewis  I was talking to some new homes agents at a continuing education class.  They told me the builder had instructed them to do this!  Not all builders are like this.  This agent jumped companies because she felt it was highly unethical.

Bill Gassett Metrowest Massachusetts Real Estate  I guess hte builders haven't thought out the entire scenario!  I know I have!  I will not do business with people like this!

I was helping my Mother move into a brand new condo that I'd help her purchase.  On moving day, I needed to stop into the sales office to get the elevator key and walked into a conversation that lasted the fifteen minutes it took until I dropped off the elevator key to the builder rep.

The rep in question, had no idea who I was.  AND I LOVE that I overheard this.

She had a couple that were represented by an agent.  She was telling them she could only lower the price of the condo if they chose to go unrepresented.  I felt like screaming at the top of my lungs, "NO!  Keep your agent.  I just negotiated with these builders and got a unit $70K below their list price......and they still paid me my commission." 

Builders are the worst!!!

Chris Ann Cleland  I fully agree!  Wow!  What a story!  It is the biggest mistake a buyer can make is to buy a home without representation of a buyers agent!  I also went into a few new homes subdivisions recently and did not identify myself as an agent!  Builders are full of BS!  You should hear what they are telling buyers!

Jim: 60K?  Wow, that's quite a hit.  It amazes me that people will turn over that kind of $$ to a near total stranger.  You can bet that's probably a lesson she won't soon forget. 

Fairbanks, Alaska Realtors Jesse & Kathy Clifton  I would have prefered the loyalty and a commission paid to me after all the time I spent with them.

I'm sure... looking back on it she probably wishes she had opted for representation as well.  Some people have a penny wise, pound foolish mentality though.

Fairbanks, Alaska Realtors Jesse & Kathy Clifton  I Agree, that a lot of persons felthey are much smarter than the average real estate agent, and can make a few dollars also!  Like you said 'Penny wise, pund foolish!"

Jim,

Just wrote about this myself. Many of the builders here are courting Realtors, but the ones that try to give the financial incentive for buyers to be unrepresented just chaps me.

Cheers,

Heather

Heather Elias  it drives me crazy!  It is like a for sale by owner that wants you to bring in buyers, but will not offre to pay you!