Don't dance with the devil

Oh sure NOW you want to cooperate……

This quick rant is concerning these large home developers and the many, many, many flyers, ads, and emails I get on a daily basis begging for broker participation.  Listen when the market was hot and it was a seller’s market these same home developers were gouging consumers, making consumers wait months and even up to a year on a waiting list and when the house you wanted came around it may cost you even more.  In addition, they were tacking on outrageous home owner’s association fees and other junk costs (like OHHHH you wanted actual lights on the outside of your house and not a bunch of wires).  Also when I brought a client to see the home these same developers said “we don’t PAY realtors to sell our home, and if your buyers wants this home they have to use OUR lender and NOT another realtor.” 

This happened again and again, I saw many clients end up buying the new homes with extravagant loan costs and upgrades and I KNEW it was an overpriced rip-off then.  And to add insult to injury I still showed the homes and did not get paid.  But NOW the tables have turned and these same developers are desperate, now wooing agents like I have never seen before.  Oh NOW they will pay and NOW they offer buyers incentives.  Many agents should not be duped into thinking that there is a gradual change of heart.  Developers should have known that they always needed the participation of a good realtor and not now just because it’s a different market.  Now they are paying 3%-5% commissions to sell these overpriced homes, and again who pays the price…the consumer.  And we agents are to play along and get paid until the market changes again and the developers don’t need us anymore.  Well I think it was unfair then and I think it is unfair now.  Unfortunately, many agents have not seen the light.  They see dollar signs and are willing to do anything for a commission, even if it is to dance with the devil. 

These developers pay a commission but so far as I have first hand seen it, they do not negotiate anything, the price is the price, and the terms are their terms.  They simply pay a realtor for handing them the buyer.  Well, we will have to see how this plays out and if and when the market starts an upswing will they still be so generous and cooperating?

Ps. Here is a peek at my next article I am working on.  This author does a good job and gets it started and I am going to summarize and elaborate.   http://news.yahoo.com/s/bw/20060901/bs_bw/b4000001

Comments

[Jessica Campa]

Dance with the devil is right! Funny how 7 years ago my parents were buying a house in corona, well whats known as eastvale now, but it was such a game. we had to go on a list and directly through the housing track to buy it and then raised the price. then it was a much better market and now its horrible. i never even thought about agents selling the homes, and getting paid or lack their of. they built too many homes and now there is no one to sell or buy them. what a shame!