Why do builders settle for less?

First a brief look at my background in new construction.

In 1995 I met a real estate agent named Don Richards at the Windermere office I had just moved my license to. Don was a project manager for another real estate agent in the area that represented several smaller spec type home builders. When Don approached me and asked if I would like to help out “sitting” a site in Sumner, WA being built by Hultquist Homes, I jumped at the chance! This is when my passion of selling new construction began. New construction became my niche market.

I learned all of my new construction knowledge from several individuals that had been selling new construction exclusively for several years. I decided that my background as a sales rep for a lumber yard back in the 1980’s was a huge bonus when it came to knowing the ins and outs of construction. My previous experience as a contractor sales rep had really given me the right tools to be knowledgeable in a profession I had just entered.

I learned from the bottom up. I first was asked to make sure the model home was furnished with marketing materials. A few weeks later I was asked to oversee the site open house schedule. With these tasks came more responsibility and a greater understanding of the new construction home selling process.

As the months and years went by I progressed from Assistant Project Manager under my partner Don Richards to Project Manager when he left the area to build his dream job in Alaska. After being the “bridesmaid” for the listing agent for several builders and projects I finally won my own project at Lakeland Hills in Auburn WA for the builder Abney/Revard out of OR. I was given the final phase of 22 homes after I submitted a very aggressive marketing plan. One so aggressive that I guaranteed I would personally “sit” the model home 7 days per week until all homes sold. I had a blast!

During my years as a Project Manager I was in charge of every aspect that marketing a new construction plat entailed. The list of duties is huge for an individual agent but I excelled at it.

The following is just a sample of the elements of new home construction sales I involved myself in.

• Designed, ordered and installed all marketing materials.
• Hired, trained, scheduled and supervised all site agents.
• Planned all “Grand Opening” and “Broker’s Open” house events.
• Developed a “New Construction Selling Guide” to assist agents.
• Attended weekly builder/escrow/lender production meetings.
• Arranged and scheduled final walk-thrus.
• Responsible for all NWMLS reporting.
• Responsible for all market research.
• Researched and developed bank proposal for a new plat in Renton, WA.
• Implemented several “Builder Addenda” to facilitate the option and upgrade process.

I do have to admit that during the years between 1995 and 2001 there wasn’t much emphasis put on personal web sites and blogging in my market area. Sure I had a web site, sure I utilized the NWMLS site and of course the Windermere web site for all of the projects, but I never once made an individual blog or web site for each project.

So back to my question, “Why do builders settle for less?”

After returning to the area in 2006 I reactivated my real estate license in 2007 and thought I would work in the resale arena to start my come back because I had moved to a different market area, most of my connections were out of the business and the market was slipping.

I now know that I need to get back to my “niche” – new construction, but with the rules on solicitation of another member’s listing I am really struggling with how to approach local builders. I am not going after the Quadrant, Chaffey, Norris type accounts. I am looking for that builder who is putting up 10 – 30 homes a year, maybe more. I am looking at finding a builder who is tired of not being treated like the big guys when it comes to marketing or representation.

I have visited several plats in the area that just don’t have any market plan, let alone an agent on site at a model home or trailer (yes I have sold many homes from a trailer or the trunk of my car). Where are the individual web sites for a small Kitsap County new home plat? Where are the marketing materials on site, like site maps, floor plans, brochures? Where are the site agents?

I really wonder how some builders sell homes if there is no marketing, let alone limited information usually with no photos, floor plans or much information on the Northwest Multiple web site. I wonder what kinds of promises were made. What types of commissions were negotiated? What if anything is the builder getting for the cost of a commission.

Like I said I can not ask the builder due to a violation of my multiple rules. I can some say ask to have the opportunity to make a proposal on their next project. Ok, “really” do you think I wouldn’t get my hand slapped for that one? I have never been given a true answer by the association or a Broker.

If you are a builder in Kitsap County reading this article and you would like more information YOU CAN CONTACT ME. If you make the first contact I am “off the hook” when it comes to solicitation. Of course I can not counsel you on how to fire your agent; you will need to read your listing contract for that information.

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