Real Estate News

Many Home Builders Make an Exception to the First-Time Registration Policy

Written By: David Fletcher, NHCB
Friday, January 25, 2019

Realtors lose thousands of dollars every day because they donrsquo;t know what to do or say when confronted with this policy.

There is a common but little-known exception to this policy under one condition. Call first.

A simple phone call to the builderrsquo;s sales office can result in thousands of dollars in your pocket.

Case study:

Prospect Watson tells Realtor Smith that he has visited a new home and liked it. ldquo;While we are looking at resales today, may we stop by the buildersrsquo; subdivision? I would like to take another look at one of their models, which i really liked.

Realtor Smith took Watson back to see the builder but did not call first. They walked in unexpectedly.nbsp;

When the onsite agent saw Watson, he called him by name; then privately reminded Realtor Smith that he would not be paid a commission if Watson purchases, because Realtor Smith did not register Watson before Watson visited the first time.

Watson bought the builders home, and as promised according to the builderrsquo;s policy, Realtor Smith did not get paid. Smith was livid and swore he would never take another prospect back to that builderrsquo;s homes. However, Smith was wrong. Unfortunately, he did not know or forgot to call first.

Remember this: If you walk unannounced, you lose control.

If you call first, you are in control of a hot prospect for that builderrsquo;s home. Builders know this.nbsp; What is the one thing that builders do not want you to do? Show this prospect another home, especially another new home.

Had Realtor Smith called first, and asked the onsite consultant about the commission, he would have heard ldquo;Bring your prospect back. We will protect your commission.rdquo;

Knowing what to do and doing it, in this case, would have put about 12,000 in Realtor Smiths pocket.nbsp;

Here is a suggested script when you are working with a prospect who has already visited a builder and wants to return for a second look.

ldquo;Hi Builder Jones, this is Realtor Smith. I have a prospect sitting in my office, who visited your sales office yesterday and liked the Palm model. His name is Watson. He really likes that model and wants to see it again today. .I was wondering what your commission policy is regarding a second visit.

ldquo;My problem is this: I know you have a ldquo;first-time registrationrsquo; policy. Im sure you run into this situation before. What is your commission policy in a case like this.rdquo;

Here is what the builder or onsite consultant will say,95 of the time.

ldquo;Bring Watson back today. We will protect your commission.rdquo;

Try it. Thousands of dollars are there for the asking.

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