The Builder/Realtor Council's main purpose when formed, was to develop standards of practice between builders and the cooping Realtor community. It pains me to say, that the "come when when we need you philosophy" is a dangerous mind set for the home builders. Since I started in the business, we have seen two recessions and tragedies that have had a profound impact on the absorption of our housing in Denver. A dangerous business choice when at any time, despite strong economic forecasts; we, experience a disaster like we have never seen before. The market turns and all the sudden the developers, homebuilders, banks and other investors are holding a boat load of inventory.....so, where is their lifejacket, maybe the over 40,000 Realtors here? Well right now, the market is strong, who needs the Realtors? We might as well cut the commission even lower off the base.
I was never a fan of Realtors earning a commission only off the base. A professional Realtor knows that you don't hand off the client to the New Home Salesperson. Ever! Nor, do you let your client speak unrepresented with the Builder Sales Person, Ever! The Realtor fiduciary does not end at the initial contact at the new home sales office. It does not end until the closing, period. The new home sales process is a considerable time investment for the cooping Realtor unless it is an immediate deliverable home. The Realtors remain a direct influence on their clients' choices as it relates to their ultimate price point. Their involvement from initial contact to close is on-going. Their role as a fiduciary must never go under valued. The investment of the Realtor's time and expenses should earn them a fair and decent coop commission; and, in accordance with a builder/realtor relationship that from its beginnings, was as fragile and confusing at best.
So, in the days that a professional Realtor's service has become de-valued, it is a shame we see the homebuilders following suit.
Jayne Allen Cordes is a recognized industry leader in new home sales and marketing for real estate in Denver since 1984.