Builders telling my clients to ask me for a rebate

Builders are great when they're great and horrible when they're horrible. Same goes for agents too. I would reach out to the supervisor above that sales consultant and explain to your clients that your company does not allow rebates on new construction homes.

This may be a way to lure a client away from an agent. You could explain to your clients that your broker does not offer rebates.

Just like point out two things:

1. Builders rely on realtors to bring in buyers. If they undercut realtors, how would that benefit them in the long run?
2. Every buyer is different. If buyer takes rebate, what service should buyer expect from realtors?

At the end of the day, everyone can choose who and how they want to work with. Just my two cents. Good luck and take care.

Sadly we've lost clients who wish to purchase new construction homes and have expected a very large rebate (i'm talking $10K + rebate was expected from 2 buyers recently), not because of the builder but another agent in the area they know did it for one of their friends who recently purchased a new construction home. This is a sore topic so I hope I don't go on a rant as we recently went through this with 3 buyers already. If agents are willing to give up such large commissions and work for free then it dilutes the services qualified agents are willing to provide to a client to manage the builder contract process. I think out of desperation agents are undercutting their worth but also it makes it bad for other hard-working agents who value what they do. I've asked the client when they go to the dentist do they ask the dentist to rebate them the money the dentist gets from the insurance carrier? It makes no sense that a buyer will expect an agent to pay the buyer to do work for them. We've walked away from transactions like this and told the clients to go do business with the other agent who is willing to give such a huge rebate. We do this job for the joy of putting people into homes not really for the money (I can only speak for myself) but at the same time, you also can't expect to work for free. Instead, we educate the buyers on all the things we as agents do on their behalf so they can appreciate the value we bring in such transactions. I wish agents can stop buying into this and making it more difficult and undermining our industry and our value.

This is so disrespectful and frankly they can get away with because they are not regulated like we agents are. TREC needs to do better.

Likely some Realtors tell their Buyers to visit builders on their own and "put the agent's name" down and this agent will give them something later after closing. The Buyers are telling the Builders this so some of the sales reps are repeating what they are hearing. These are lazy "Realtors" (no one here!) that are not going to go with their clients and help them through the building process and want to collect a check at the end. The builder rep is not helping themselves as when they repeat this as not all agents are the same.

Set expectations with your clients in advance. I myself might....might provide a rebate if they are a repeat past client or I'm assisting with selling their home, etc. But never give away your commissions! This is a REAL JOB and you are supposed to be the expert with hundreds of hours of class works and thousands of hours out in the field learning all about these builders and guide these buyers to the best match. If you can't earn your full commission then you might consider another career. You work too hard!

Do other other professionals provide discounts at a drop of a hat? Doctors? CPAs? Lawyers? You set your fee upfront with the Buyer's rep agreement and then you go to work...that simple. If you provide discounts, rebates address it there and not with some builders sales person. Can't control what the builders rep says...but you can control what is happening with your clients. Good luck.

Mark McNitt
MarkKnowsHouston.com
832-567-4357
Bernstein Realty

Let us know the builder name so realtors can boycott them. I would turn it around on them. Let buyers know that sellers pay all commissions and rebates so since the builder is the seller any rebates should be paid by them.

After I registered my buyer and was physically with them, but the sales Rep offer my buyer some Realtor can do that to call them and interview them too
Etch out from Matt freeman/ Jordan Ranch- with Johnson development

Terrible! Builders don't need agents in this market so some of them are just doing whatever they want. There's some good advice on here already. I would definitely email the salesperson and copy the buyers, and I would also contact corporate. We've resolved several issues with new constructions and/or salespeople by contacting corporate. I would also remind the buyers that our commission comes from the seller, not the buyers. Then point out how unethical and unprofessional that suggestion is given that the salesperson is not representing them, and that YOU are representing them and their best interests.

Call the builder(s) and the sales rep out by name. Please let agents know who the reps are that are making these type comments. The cost to sell that home is built in every time they start a build.

Say No. The ink is already in the contract. That's an unethical. I would be incredibly angry with the builder. They're using your client's connection to you as leverage.

I've seen this happen to me only when I'm not present during the first meeting.

Sadly builders aren’t bound by the same rules we are.

Send an email to your buyers, and CC the sales rep, telling your buyers you will gladly match the sales rep's rebate.

How do they do that? Because when I take my clients to see new homes I’m always present and as far as I know anything goes through me. Is already bad that some builders are paying below 3%, and then they want us to give an additional discount? That’s crazy but I would just tell my client that the sales person must be new and doesn’t know how it works.

This is your salary. Is anyone else out there discounting their salaries?

No big deal. If it makes a big impact on their decision to proceed and if the lender approves, just do it.

Report them to TREC file a formal complaint.

Bad on the sales rep side. I had that happen and went above the sales rep to the manager on a deal a few years ago and sales rep got in trouble from corporate.

Totally a bad builder practice. Explain to your clients that your broker does not offer rebates