Can I refer clients or myself for new construction purchases?
Whenever you're working with a customer who is wanting to buy new construction or you are buying new construction for yourself, you'll want to make sure these three things happen:
- You must be licensed in the state that the customer is wanting to purchase in.
- Each builder has their own rules and guidelines, but most request the agent accompany the buyer on their FIRST visit. Otherwise, you may not qualify for the agent commission. Since that’s not always possible, make sure the client knows to verbally express to the builder sales rep that you are their agent (the builder sales rep will ALWAYS ask). However, just know it is the builders sole discretion whether to add you as the agent if you are NOT present on the first visit.
- For the sales contract, your name and information (including license number) must appear on the contract with Realty Connect as the brokerage. The settlement coordinators will only require that information to make sure they have everything they need.
Whenever a customer has concerns with their new home:
- Contact the builder (by phone or email) to express the concern and ask them to please contact the buyer ASAP. But don't "get in the way". Most builder reps are very experienced and can navigate any concern your buyer will have. Keep in mind, you are not practicing real estate in this capacity. You are merely registering as the buyer's agent to get the commission, so make sure you don't cross lines by trying to act as a fiduciary.
- Remind the customer that new construction is not like general real estate. That's why they will need to work with their builder sales rep during the entire process. They will be the buyer's source for anything they need (or any question they might have).
If your client is looking in another state or you just don't want to be the agent for them, you are welcome to submit the client's information into our network for them to be matched with some top agents or you can find your own agent and submit a referral agreement. (realtyconnect.com -> submit a referral)
If you are the agent for this transaction, you would receive 80% of the builders commission as a referral commission. If you submit it into our network, you would receive a 20% referral commission. If you find your own agent and submit a referral agreement, you can negotiate your referral commission with that agent.