Building Someone Else's Database

[naplesrealestate]

I had an epiphany this morning!

Being in a real estate market where there is a lot of new construction, it is great to have people contact me and request more information about a particular development. I register the prospect with the builder or developer - with the idea that I will hopefully, be able to work with the prospect in the purchase their new residence.

However, the contact information is used by the builder or developer to build their database and promote their new projects to the prospect via either e-mail or snail mail.

Anybody having the same experience?

Does anyone have a possible solution?

[kensmith]

I have sold investment condos to my investors to have the developer turn around and market to them at their next conversion. This really pisses me off when they pull this, but I haven't found a good way around it.

[naplesrealestate]

We might both be in the same boat. Have you thought about educating your investors to use you when the developer comes a calling? If so, maybe we collobrate on an education program?

[kensmith]

I do talk to them about it, but many times the developer will offer them units before they go on the mls. With the number of units I can sell at any given conversion most of the time it only takes one phone call to get it taken care of...but every so often one decides to be a jerk.

[Andrea Messenger]

I've found new home builders and developers to be the same way -they'll find any way they can to cut the REALTOR out of the deal.

In fact, I've noticed several lately require me to sign a form stating that my registration is good ONLY at that community and ONLY for 30 days. And it also states that they have the right to follow up directly with my client for any purpose.

And some buyers - even if you educate them - are not very loyal. Just part of the business, I guess!

[Homer4Bama]

I am not an attorney, but what about creating a contractual agreement that you would present to the builder / developer which stipulates your terms regarding current and future business derived from the referral?

Since as a Realtor® you are generating business for them, why not attempt to leverage your position to secure your position?

[Jim Messenger]

Originally Posted by Homer4Bama I am not an attorney, but what about creating a contractual agreement that you would present to the builder / developer which stipulates your terms regarding current and future business derived from the referral? Since as a Realtor® you are generating business for them, why not attempt to leverage your position to secure your position?

The problem is no builder would sign such a form.

Our only defense is to educate our clients and have a written agreement with them.

[Homer4Bama]

Originally Posted by Jim Messenger The problem is no builder would sign such a form.

Originally Posted by Jim Messenger Our only defense is to educate our clients and have a written agreement with them.

Jim, I agree education is key, but also developing strong business relationships with clients will help retain loyalty for future business as well.

[kensmith]

The builder reps not only wouldn't, but they can't sign a form you create and bring in. They can only use pre-approved forms that the builders attorney provides. There is no changing these forms, and no chance of using your own form.

One good thing about the market slowing is builders have to start trying to win back Realtors. For the last few years they haven't cared about our business, but now that they have millions of dollars worth of spec homes just sitting there at each community they want us in there really bad. This will make things a little better, but they will still try and find ways to save the commission.

[Andrea Messenger]

Yes, they are trying to court us again now that sales have slowed down. But even though they advertise higher commissions, they are still doing what they can to save paying it!