The Reward for Community Heroes - Lack of Independent Representation
A couple of weeks ago I chronicled the difference in builders’ attitudes when it comes to specially-designed incentive programs for teachers, police officers, fire fighters and other community heroes or champions.
The short version - Pulte gives the above folks an additional $5,000 discount off the price of their homes. Taylor Morrison gives such buyers 3% off the price - as long as they aren’t working with a real estate agent.
A month ago, one of my buyers was told by Richmond American that they have a similar 3% discount that was independent of the buyers’ decision to work with an agent. Today we learned just the opposite was true.
In my original post I speculated that even without the incentive officially being available to one of my clients I’d likely be able to get them their discount. That was the case today with Richmond American. So from that standpoint there’s no harm done.
But consider the overall message … thank you for helping us build community and keep us safe. We want to recognize you for your hard work and sacrifice and the best way for us to do that is make sure you don’t have anyone to represent you or negotiate on your behalf.
Being a community champion doesn’t mean you deserve to have someone working in your best interest. Sorry. But really, thanks!
Considering builder contracts are weighted heavily in favor of the builder, buyers should have their own representation. We could let this branch into a discussion of divorced commissions, where buyers would pay their own agents, but the net effect to the bottom line price is the same as the buyer sacrificing their incentive in order to use an agent.
These folks sacrifice enough. They shouldn’t be asked to sacrifice the right to have someone work to protect their best interests as well.
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