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ShareMany builders miss out on a huge opportunity because they’re apprehensive about working with real estate agents due to some common misconceptions. However, according to recent statistics by the National Association of REALTORS, there are around 2 million active real estate licensees in the United States that represent over 80% of potential buyers when they’re looking to purchase a residential property.
The growth and popularity of the real estate agents have made many builders and developers respect and realize the fact that the agents represent a large source of sales within their community. Many builders are questioning their preconceived notions that real estate agents don’t represent their best interests and are actively seeking out mutually beneficial partnerships with their local agents.
Here, we’ll debunk some common myths about builder/real estate agent relationships that prevent builders and agents from working together:
MYTH #1: Real Estate Agents Just Represent the Best Interest of The Buyers
A lot of builders think that the real estate agent just represents the interests of the buyer and will try to cut their profit as much as possible to get a sale and make their commission. On the contrary, most agents try to get the best deal for both parties to ensure buyer satisfaction while creating long-term relations with builders to get access to future projects. A professional and experienced agent will go the extra mile by offering suggestions and advice to the builder and buyer to make the deal worthwhile for both parties.
MYTH #2: The Builders Will Cut the Agent Out of The Deal of They Communicate Directly with The Buyers
Another common myth among the real estate agents is that the builder will try to cut them out of the deal if they let them communicate with the buyer directly. The truth is most builders are aware that the buyer is dealing through an agent and will respect the honor code that goes with the process. They might discuss various upgrades and changes to the property with the buyer, but the final deal will always go through the agent if the buyer is working with one.
Image Alt-Text: A small model of a residential home with a key to depict sale of a house
MYTH #3: The Builder Can Get A Better Deal If They Approach Buyers Directly
There are plenty of builders out there that think that cutting out an agent and approaching the buyer themselves will get them a better deal as there won’t be any agent commission involved.
This might work sometimes, but mostly an agent can help the builders get a better deal by helping them find a buyer willing to pay the asking price. A builder is also more likely to offer a lower price to the buyer if they work with them directly instead of an agent.
With an agent, the builder can just tell them the asking price, and it is the agent’s responsibility to deal with any negotiations with the buyer. Sometimes, an agent will take a lower commission to get the builder their asking price while making sure the buyer can get a discount to close a deal on a property.
With an agent, the builder can just tell them the asking price, and it is the agent’s responsibility to deal with any negotiations with the buyer. Sometimes, an agent will take a lower commission to get the builder their asking price while making sure the buyer can get a discount to close a deal on a property.
Find the right agent or builder to partner up with for profitable deals and better exposure for your property by Signing up with Builders Update and get access to a large base of qualified buyers and experienced agents. As the nation’s #1 new home inventory listings platform, Builders Update offers effective construction data solutions to local builders.
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