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Builders Working with Realtors


In the 15 years I've been building new homes here in West Michigan I've come to appreciate the real estate community more than most builders and here's why: Realtors bring buyers. Many builders can't get their arms around the concept of giving up a significant chunk of their hard-earned profit when a Realtor brings them a client so they shy away from Realtors. In a sense, I can't blame them. It is frustrating to spend four months building a home, then have a real estate agent who has only been to the home two or three times take 6 or 7% of the gross. Often this is more than what's left for the builder when it's all said and done. We've sold several homes where the real estate company makes more than we did. I've even lost money on projects that paid the Realtor handsomely. However, as builders, we should recognize that it's not the buyer who justifies the commission. It's the dozens of showings that don't result in a sale where they earn it. And as Realtors, we need to be sensitive to the financial hardships of the home builder, especially in this economy.


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Builders are a bit of nightmare to deal with where we're from. Sometimes they make it so difficult for us to show and sell their homes, that they only hurt themselves. In that case, I wonder why they even bother listing on the MLS at all if they don't intend on being friendly to Realtors. Our commission is even far lower than yours, so one would think they would be a little more cooperative, but alas, there are few Realtor-friendly builders where we are. Your article makes a lot of sense; if only Realtors and builders could both adopt this attitude!

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