To all the agents in the house,
Many of you have railed against how homebuilders are treating buyer's agents during this high-demand housing cycle including paying a sharply reduced commission, or no commission at all.
"I have been disappointed in some homebuilder friends who have not been doing what they used to do," said Abigail Jennings of Lake Norman Realty in Cornelius, North Carolina. "In the past, they were wanting to bring us people but now they have changed their tone."
Some agents have even suggested retaliating against homebuilders when the market cools, and more homebuilders may need agents to facilitate deals.
"My first thought is payback," said Gary Mapa of Site Acquisition Resultants in Applegate, California.
But who at the homebuilding company bears the blame (or, is making an astute business judgment) about the fraying of relations with agents?
In what I imagine only exacerbates the agent's frustration, homebuilders do not acknowledge this friction on a national level. National companies like DR Horton and Lennar appear to have no official policy when it comes to paying, or not paying, agents. The National Association of Homebuilders told me that it has never looked into the issue.
Agents, when you interact with homebuilders, who are you interacting with? If it's a sales representative does that representative have the power to say what your commission is? If not, who might have that power? A regional sales manager? A project manager? Someone higher up?
I am also curious to hear from any homebuilders or their representatives about who is making these decisions.
Please email me anonymously at mblake@housingwire.com.
Sincerely,
Matthew Blake
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