Homebuilders' Expectations of Brokers

Homebuilders’ Expectations of Brokers

Home buyers who work with a real estate agent specializing in new construction have a huge advantage.

An experienced agent can help a buyer determine whether bold backsplash tiling or a dedicated home office will add enough value to make the project worthwhile.

How Can Brokers Help Homebuilders With Marketing Strategies?

No doubt, brokers play a crucial role in helping homebuilders develop effective marketing strategies. Here are some ways brokers can assist homebuilders in their marketing efforts:

1. Market Analysis and Positioning

  • Identify target markets: Brokers analyze local market trends, demographics, and buyer preferences. They help homebuilders understand which segments to target.
  • Positioning advice: Based on market research, brokers guide homebuilders on how to position their properties. Brokers provide insights, into whether luxury homes, starter homes, or eco-friendly properties.

2. Pricing Strategies

  • Competitive pricing: Brokers help homebuilders set competitive prices for their properties. They consider factors like location, features, and recent sales data.
  • Pricing adjustments: If a property isn’t attracting buyers, brokers recommend price adjustments to improve market appeal.

3. Effective Listing Presentation

  • Professional photography and staging: Brokers arrange high-quality photos and virtual tours to showcase properties attractively.
  • Compelling property descriptions: Brokers create engaging property descriptions that highlight unique features and benefits.

4. Online and Offline Marketing Channels

  • Online presence: Brokers list properties on multiple online platforms (real estate websites, social media, etc.). They optimize listings for search engines.
  • Offline marketing: Brokers may organize open houses, distribute flyers, and network with other real estate professionals.

5. Networking and Referrals

  • Leverage their network: Brokers have connections with other agents, potential buyers, and industry professionals. They can refer interested parties to homebuilders.
  • Word-of-mouth marketing: Satisfied clients refer others to brokers, which indirectly benefits homebuilders.

6. Negotiation Skills

  • Maximize value: Brokers negotiate on behalf of homebuilders to achieve the best possible terms. This includes price, contingencies, and closing costs.
  • Resolve conflicts: If issues arise during negotiations, brokers mediate and find solutions.

7. Market Insights

  • Stay informed: Brokers keep homebuilders updated on market shifts, buyer preferences, and emerging trends.
  • Adapt strategies: Based on changing market dynamics, brokers adjust marketing approaches to stay effective.

A builder’s seller’s agent works for the builder and, by law, must put the builder’s interests ahead of yours. A few Expectations are listed below:


Home builders want to provide a quality experience for buyers and maintain excellent communication throughout the process. It means offering education to brokers on new construction, scheduling open houses and educating their sales associates on the new construction process. 

New Home Star is also a great resource for clients during the build process because it can help them avoid making mistakes that could cost them later.

For example, signing an intake form at a showing or online can create confusion on who represents a client, so Clients have their agents sign an agency agreement only after they’ve selected the home they want to purchase.

A well-trained agent can help her clients navigate the many decisions of a new build, like whether bold backsplash tiling will stand out or fade in popularity or whether a dedicated home office is a worthwhile addition to resale value.

An experienced agent can also negotiate extras and perks like appliances and cabinets.

2. Access to Inventory

New-home sales often involve multiple homes at once, so builders need many agents to sell their inventory. That’s why it’s important to be on the builder’s list.

Builders increasingly offer broker incentives, including a 2-3% commission rate in some markets. Join a builder’s list and attend open houses to meet representatives and learn more about the community.

Request a single point of contact at the builder who can answer questions and help guide clients through the process.

Brokers should also get clear on the builder’s procuring policy, as some builders require buyers to sign with their agent at registration to receive a commission. Otherwise, the buyer could pay their agent’s fee, which could be costly for both parties.

3. Referrals

Home builders want brokers to bring in buyer referrals. Referrals can be some of the best leads, especially when there isn’t much trust-building required.

They can also help build an agent’s business, which is why some builders are optimizing their referral programs.

4. Incentives

Many home builders offer incentives to attract buyers, including free upgrades like granite counters and stainless appliances. Incentives can also include money to help with closing costs and interest rate buy-downs.

But these promotions can have catches that cost buyers more than they save. For example, if a buyer chooses to use an outside lender instead of the builder’s preferred loan officer, they may forfeit any financing incentive the builder offers.

Buyers should always get a loan quote from an outside lender before signing a contract to ensure that the builder’s financial incentives are the best deal. And brokers should disclose any builder-paid incentives to their buyer clients.


Failure to do so could result in an agent receiving extra compensation for directing a client to a specific property—without the buyer’s knowledge. It can lead to conflicts of interest and damage the broker’s reputation. It could cause distrust and hatred.

Frequently Asked Questions (FAQs):

What services can brokers offer to homebuilders?

Brokers can provide a variety of services to homebuilders, including facilitating connections with potential buyers, marketing homes effectively, and assisting in negotiations.

Why do homebuilders value good relationships with brokers?

Positive relationships between homebuilders and brokers create mutually beneficial opportunities. Homebuilders gain access to potential buyers, while brokers gain access to a broader inventory of for-sale homes.

What challenges might brokers face when working with homebuilders?

Brokers may encounter challenges related to market fluctuations, competitive pricing, and ensuring smooth transactions between homebuilders and buyers.

How can brokers help homebuilders navigate the real estate market?

Brokers can provide market insights, assist with pricing strategies, and help homebuilders adapt to changing market conditions.

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