in this issue…
Putting a Face on Real Estate since 1995™
• HBA MAX Awards & Gala • Platinum Top 50 REALTORS High Tea Fashion Show Fundraiser • Santa Rita Ranch Grand Opening • TREPAC Cake Auction • and much, much more!
Associates in Progress
Falcon Pointe
page 25
Inside Front Cover
Is Growing! TM
MAY 2014 • VOLUME 19 • ISSUE 1
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How to help clients select a builder
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ocating a home—that place where family, security, comfort, mother’s perfume, sanctuary, unopened moving boxes and home-style meals exist—is a REALTOR’s main job. Some clients will want to express their creative, innovative spirits by hiring a builder to create their dream home. REALTORS who are inexperienced in working with builders can help their inexperienced buyers make good builder decisions by learning how to work with the builders, knowing what to expect. These useful tips can help navigate the process.
Know the builder’s reputation REALTORS who understand different builders’ reputations can make solid relationships. Check the National Association of Home Builders (NAHB) in order to research the participating companies that use a documented quality-management system as well and are audited by NAHB experts. Background checks are another way to measure a builder’s reputation. Services such as Experian ContractorCheck, the Better Business Bureau, Angie’s List and ServiceMagic can tell the builder’s financial health. Attend model home tours and sales presentations to determine the builder’s quality in relation to minimum code requirements. Ask the builder questions, and expect open responses. To learn about local builders’ reputation the oldfashioned way, attend networking events and get the scoop from fellow REALTORS. “Drive the community on a weekend and ask several of the homeowners their opinion about the builder and neighborhood,” says Cory Munson, sales counselor and trainer at Grand Haven Homes. “Just like taking a survey, you have to obtain a wide range of opinions. The folks have nothing to gain or lose by your home purchase. If all opinions slant one way, chances are you’ve gotten a good idea of whether or not to choose that builder or community.”
Understand the warranties the builder offers Most builder warranties cover workmanship and materials on the new construction for one year, with coverage lasting four years or more for major defects in HVAC, electrical and plumbing systems and up to 10 years for major structural elements and water-penetration problems. Spend time researching the builder’s warranty coverage, including service, procedures and policies if problems occur. Ask the builder’s response time, what is and isn’t covered, what is the process for making and resolving a claim and the extent
of the builder’s liability.
How is commission handled? According to a study conducted by the National Association of REALTORS, REALTORS are selling 63 percent of new homes. A clearly defined explanation of the commission structure must be established in order for the builder-REALTOR relationship to thrive. Many builders require REALTORS to register on their website with the name of the client they are representing from the beginning of the transaction. Understanding the established commission and required registration process is key. “A REALTOR should always ask what to expect with regard to regular communication,” says Munson.
What is the builder’s inventory In order to find a builder that matches your clients’ needs, take time to learn what types of houses the builder designs, such as garden homes, fully or semi-custom built, smart homes, townhomes or luxury moveup homes. After the builder’s inventory is understood, check which builders are working within the area of your specialization. “Builders are on the leading edge of style and design,” says Ryan Jackson, vice president of sales and marketing at Streetman Homes. “There have been some incredible advancements in recent years involving energy efficiency. Today, homes cost a lot less to operate than homes built even 10-15 years ago. Recently, technology advancements have really taken shape in homes as well with home automation systems.” Some REALTORS might think that selling a builder’s home is more trouble than marketing used homes. While some builders may believe that REALTORS are an expensive way to market and sell their homes. With a proper understanding of each other’s perspective, builders and REALTORS can develop a relationship that mutually benefits both parties. RL
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Upcoming Events Monday, May 19 25th Annual WC Golf Classic Cimarron Hills Golf Club- 11:30 a.m. Wednesday, May 21 HBA Member Mixer and Washer Tournament 2014 10401 Burnet Road - 5 to 7 p.m. Thursday, May 22 Grand Haven Homes Dream Tour Rough Hollow - 10 to 11:30 a.m. Wednesday, May 28 ABoR Forum: Mopac, Appraisals & Legislative Issues ABoR Office - 10 a.m. to 12 p.m. Thursday, May 29 WCR: Martini Madness Member Mixer - DHI Mortgage Office 5:30 to 7:30 p.m. Wednesday, June 4 HBA Lakeway/Bee Cave Chapter Golf Tournament Flintrock Falls Golf Club - 1 to 6 p.m. Wednesday, June 11 NAPMW: Speaker Series with Scott Carley: "The Priority Police" Norris Conference Center 11:30 a.m. to 1 p.m. Thursday, June 19 WC REALTORS Education Mixer WC REALTORS Office - 4 to 6 p.m. More at www.myRealtyLine.com