Seems like it has been an "us or them" thing for as long as I can remember. There were those hard working "re-sale" people who listed "used" homes, put up signs and ran classified ads. And there were the industrious builders' sales agents who sold new neighborhoods promoted by model home parks and billboard signs.

And I clearly remember real estate agents planning tours for their buyers, avoiding new home community areas like the plague. Perhaps that was motivated by the commission dollar volume being greater in re-sale neighborhoods. But do Realtors really have to have a different mind set about new homes? We're all in business to do basically the same thing - match up the right home to the right buyer, whether it's new, slightly used, or "classic". And what many Realtors don't even know is how easy it is to make money on new home sales.

There are, of course, those builders that refuse to make it worthwhile for Realtors to bring them buyers for their new homes, and will not pay referral fees or co-op commissions to agents who can deliver potential buyers to their doorstep. Broker fees are not built into these firms' cost of doing business. And, usually no amount of persuasion will get them to change their minds on welcoming the Realtor community.

For those builders that do value the power of the Realtor community, however, it can be a beautiful thing for both Realtor and community sales agent. That is, when everybody gets with the program. What program, you may ask? I have found that there can be a unique and cooperative symbiosis between the Realtor who knows how to promote new home communities and the "tract" sales person who knows their houses like their lives (and livelihoods) depended on it. It's all in the perception, the "home" work and the presentation.

Speaking of Realtors, I believe it would be safe to say that these omnipotent beings tend to have a huge hold over some very builder-valuable types of buyers, especially what we call "relos". From the onset, Realtors who work with relocation buyers know to prepare themselves to become tour guides. Some even meet buyers at the airport or their hotels to keep them a captive audience for home shopping. When that relocation buyer shows interest in the new homes, these Realtors must make it their business to become experts about new home areas, acting as a knowledgeable resource to these lost souls.

The really savvy Realtors, however, become experts on individual builders themselves. They do this by keeping themselves constantly updated and informed on what the builder communities are doing. Some successful types I know keep the builders' brochures and price sheets on file for ready access and even know the builders' floor plans from memory. They find out what schools and services are attached to new home areas, bond information, if any, and zero in on the buyer's needs in terms of commute time and day care.

What this does for a new home sales person is create something rare and appreciated--an already informed buyer. Once the Realtor believes in and has a comfort level with that builder and its agent, this is where the beauty and spirit of cooperation really begins. In my opinion, the professional Realtor has called ahead to the subdivision agent, gotten information on what homes and floorplans are available within the buyer's time frame, and actually makes a tentative appointment with the sales person.

Is a match made? Perhaps more easily than you can imagine. A new home, presented in its first impression by way of a model home, is a huge attraction to most buyers. It is a shiny, state of the art, never-been lived in fantasy. Unlike the lived-in variety, the buyer can choose - just about everything! There are no pre-chosen rust colored carpets, lime green tile, used appliances, and ugly drapes. What smacks out at them is newness and the ability to "personalize" the home to their heart's content.

New home sales people also have a responsibility to "court" their Realtor friends if they want to put up real numbers for their builder. They can do this by staying in touch with a "core" of key Realtors on a regular basis, letting them know when new phases of homes are being released, when houses falls out of escrow, (creating a "move-in" opportunity) and when the builder is offering a special incentive or promotion. They can do this by phone, fax, direct mail, broker parties, or - just think of it - via the Internet!

Don't forget that playing by the rules is extremely important to the cooperating builder. Those rules usually dictate the process by which a buyer is personally introduced and registered at the builder's community on the first visit. Many new home developments even have a sign posted as Realtors and buyers enter the sales office, disclosing this vital rule. Back door requests like "I'd like to register my buyer, Joe Smith, who came in last week to see your homes" don't wash well with builders. In their eyes, if the Realtor wasn't there, that wasn't a co-op buyer. That prospect was up for grabs by any one, and a commission would not be due, even if the Realtor told the buyer where to find the builder's homes.

So what happens after the Realtor has introduced, registered, let the builder's sales person do their thing and close the buyer on the shiny new home? On the part of the Realtor, not much. The new home agent usually takes it from there, writing the purchase agreement, addenda, and disclosures, and the escrow and building process begins. There is something valuable the Realtor can do to earn his or her commissions during this down time in the time line, however. He or she can act as a liaison, keeping in touch with the new home agent to keep abreast of the process, and troubleshooting when a misunderstanding occurs or clarification is needed. The Realtor can also truly help calm the "closing jitters" for their buyers, and make them feel good about their new home purchase.

Realtors and builder sales people can work together to create a powerful and winning combination for home buyers, if they put the same kind of energy into their partnership that they do with their clients. As they say, this can the beginning of a beautiful (and profitable!) friendship .

Published: May 21, 1999

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A veteran of the real estate and homebuilding industries since 1986, Dena Kouremetis first joined Realty Times as a new homes writer in 1998. Since then, she has authored four books, written consumer columns on new homes issues for websites and newspapers all across the country, contributed to builder trade magazines, appeared as a guest expert on several radio shows and even created a ten-chapter podcast for LendingTree.com’s homebuilder website, iNest.com, now available on iTunes, entitled Uncharted Waters; Navigating the Purchase of a New Production Home. Kouremetis recently joined her local Folsom, CA Coldwell Banker office as a broker associate while continuing to write for the real estate industry. For the past three years, she has been training real estate agents for both the resale and new homes industries, putting her experience, research expertise and gift of expression to work to help others entering the business.