Just about all homebuilders have the same registration policy: “If you do not introduce your prospect to us on their first visit you will not be paid if they purchase a new home.”
This outdated policy, in most cases, is a myth.
Realtors losing thousands of dollars every day because they don’t know what to do or say when confronted with this policy.
There is a common but little-known exception to this policy under one condition. Call first.
A simple phone call to the builder’s sales office can result in thousands of dollars in your pocket.
Prospect Watson tells Realtor Smith that he has visited a new home and liked it. “While we are looking at resales today, can we stop by the builders’ subdivision? I would like to take another look.”
Realtor Smith took Watson back to see the builder but did not call first. They walked in unexpectedly.
When the onsite agent saw Watson, he called him by name; then privately reminded Realtor Smith that he would not be paid a commission if Watson purchases, because Realtor Smith did not register Watson before Watson visited the first time.
Watson bought the builders’ home, and as promised according to the builder’s policy, Realtor Smith did not get paid. Smith was livid and swore he would never take another prospect back to that builder’s homes. However, Smith was wrong. Unfortunately, he did not know or forgot to call first.
Remember this: If you walk unannounced, you lose control.
If you call first, you are in control of a hot prospect for that builder’s home. Builders know this. And what is the one thing that builds does not want you to do?
Show them another home, especially another new home.
Had Realtor Smith called first, and asked the onsite consultant about the commission, he would have heard “Bring your prospect back. We will protect your commission.”
Knowing what to do and doing it, in this case, is worth thousands of dollars.
Here is a suggested script when on the phone.
“Hi Builder Jones, this is Realtor Smith. I have a prospect sitting in my office, who visited your sales office yesterday and liked the Palm model. His name is Watson. He really likes that model and wants to see it again today.
Note: always be honest and give the prospect’s name and when he visited. You are letting the builder know that you are for real.
“My problem is this: I know you have a “first-time registration’ policy. I’m sure you run into this situation before. What is your commission policy in a case like this.”
Here what the builder or onsite consultant will say,95% of the time.
“Bring Watson back today. We will protect your commission.”
Try it. Thousands of dollars are there for the asking.