Builders work to mend fences with agents

Builders work to mend fences with agents from the Arizona Republic 8/28/06

The gist of this story is that last year builders were doing as much business as they could handle and they didn't need agents to help them do it. So they ignored the agents and cut commissions, meanwhile they were having home buyers pay top dollar for every new house and upgrade.

This year the builders are doing very poorly, with a large stock of unsold homes. So they're offering agents increased commissions and some wooing and wining and dining to get them to bring in buyers. And they're offering buyers an array of valuable incentives to get them to buy homes.

But apparently a lot of agents are upset with the way the builders treated them last year, so now that the tables have turned they're ignoring those builders and not bringing their buyers around to those builders sites. They want to get back at those builders for the way they were treated.

Well obviously agents have a responsibility, a fiduciary duty, to show their clients the homes that might be right for them and negotiate in the clients best interests, and not be guided by the amount of the commission or let their personal feelings get in the way.
But sometimes human nature gets in the way anyway, because you usually don't want to be nice to someone who wasn't nice to you.
Conversely, builders DO NOT have a responsibility or duty to agents, to offer agents any particular commission, incentive or anything, in good times or bad.

So maybe you should let your buyers know that Harrys Hillside Homes offers homes that may be right for them. And explain to them that last year Harry was squeezing agents and buyers every which way (if in fact that is true) but that this year Harrys' offering a long list of valuable incentives for buyers and healthy commissions for agents. So let's go out there and take a look.
If they like what they see, you're in the drivers seat.
Now it's your turn to squeeze. Negotiate like crazy to get the absolute best deal for your buyers, and then go back for more. Believe me, the builders have more to offer than what they've laid on the table, probably a lot more. If your buyers are satisfied and you think you've gotten everything you can get for them, then everybody signs on the dotted line. Your buyers get a great deal and you get a fat commission.
Do the right thing for your clients, earn your commission and get back at the builder at the same time. Who knows, that builder might even thank you.