Woodbury Junction to Realtors: STOP Selling Our Homes!

It's a hard knock life for home builders these days. According to the National Association of Home Builders about 71 percent of home builders used incentives to draw in prospective buyers to their communities in June. Orange County, NY real estate hasn't been immune to this trend and incentives are spread far and wide on certain communities but the area is still prime for new development with new communities like Woodbury Junction and Encore Palisades opening their doors this Fall.

After learning of the two new communities coming to the surrounding area, Woodbury Junction and Encore Palisades, I added a profile of each community to the long list of community profiles already on my website; both resale and new construction. Recently Woodbury Junction opened it's doors for a "Private RSVP" event before opening to the general public. I called the sales manager of the community, Virginia Brodsky, and inquired as to the registration process for buyers using a real estate broker. After a few more calls I received a call back from Virginia explaining the registration process online and that they were offering a 2% co-broke to real estate brokers. As I understand it you have to register your client on their website but if your client already registered on the website, perhaps to receive community opening updates, then you are not eligible for the co-broke. Virginia mentioned that local brokers weren't thrilled about this (for obvious reasons) but that's the way it is so I went ahead and registered prospective buyers who either inquired about the community on my site or prospective buyers I had been working with that I felt may be interested in the community.

During my first visit to the community I met with Virginia and we reviewed the community with my clients. Virginia asked if I had registered on the buyer's form as the broker to make sure I received my co-broke and I noted that I had done so. About a week and a half later I received a not so pleasant phone call from Virginia around 8:30 am that went to voicemail. I'm actually kind of glad I didn't answer the phone because I don't take too kindly to being yelled at on the phone for no reason. It turns out she was furious that I had posted a community profile of Woodbury Junction on my website and said that all of my client registrations and visits, past, present, and future were not going to be recognized. Apparently Woodbury Junction can take your registrations, 5+ buyers, in one fell swoop and not think twice about it. How can Realtors trust the builder of Woodbury Junction if they flip flop on when they offer a co-broke and when they do not and worse yet, attempt to take the co-broke away from you after you already register your clients or even after visiting the community with said client(s). She also demanded that I remove the community profile of Brigadoon, another Carteret Group project, from the site but I really don't see the point in that given 99% of the community consists of resale homes.

This lashing out surprises and disappoints me as it defeats the purpose of what I suspect the co-broke is for. The real estate co-broke is intended to pay for the services of a buyer agent out of marketing fees set aside by the builder for the entire community. If Realtors help their buyers find a community like Woodbury Junction that fits their needs then the builder of Woodbury Junction does not need to market as much and can sell the community faster. What builder wouldn't want that?

Home buyers need to make sure they retain the services of a buyer agent who will represent them exclusively during the real estate buying process. A buyer agent is NOT just there to help you find a home and going to new home communities without one is a very big mistake on the buyer's behalf. You see, the builder has experienced agents representing them exclusively and their goal is to help you buy a home, preferably the most expensive one possible at asking price with lot premiums, and to choose as many options as your budget will allow.

So what does a buyer agent do when representing you?

- Negotiate the asking price of the home in addition to lot premiums and option prices. I recently negotiated on behalf of one of my clients on a new, to be built home, where she ended up saving over $50,000. Do you think the home builder's sales representatives, who are only there to represent and help the builder, are going to help you save tens of thousands of dollars?

- Educate you on the market and the competition! - This is SUPER IMPORTANT! Do you think Builder A is going to tell you that Builder B, a mile down the road, is offering $30,000 off the price of their 2,700 sq.ft. Colonial this weekend? OF COURSE NOT! They want you to buy a home in their community.

- Guide you through the home buying process. - Did you know I recently spoke with a builder, a very well known one no less, that is getting rid of the notice to home buyers that they have the opportunity to meet with the builder before the home begins to discuss where the home will be located on the buyer's lot, where the driveway will be and to review the structural upgrades of the home that the buyer has chosen. There were other meetings that they were taking out of the "Builder's Buying Process" that buyers were entitled to (and would benefit from tremendously) as well. What was the representative's response when I asked how unrepresented buyers who don't have experienced agents on their side would know about these important meetings? Simply put -- They'd have to ask for them. How would a home buyer, who doesn't work in the real estate industry daily, know what meetings to ask for? A buyer's agent will know what meetings to ask for and will also help guide you through the entire transaction.

Provide a list of qualified professionals who will be able to assist you. - You are going to need an attorney and loan officer. We all know how hard it is to find good professionals in any field so why would you leave your most important financial decision to chance with someone in the YellowPages? All of the professionals I refer have received outstanding reviews from past clients and are people I would use myself when buying a home. 

And that's just the tip of the iceberg. It's clear to me why a builder wouldn't want a home buyer to have their own representation now: They don't want home buyers to be educated about their choices in new home communities of which Orange County has many and they don't want buyers to save money on their next home purchase. With that kind of love, how could you not use an agent to represent only your interests in your next home purchase?

Also, as a Realtor I am concerned for my fellow Realtors out there who may have registered their clients for the community of Woodbury Junction. Let my experience serve as a lesson to you all -- Get a copy of ALL registrations with every builder sales office you visit - even if you know your client won't like the community.

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