Texas Builders Association overview.
Texas Builders Association and a super quick review of that brought to you by Shana, she’s a luxury real estate broker and you gain some information about this and when you were down in Austin at the big.
Conference last week. So I was speaking with Leslie Rouda Smith about she wanted to talk to us about some issues that we’re seeing and I brought up, you know, I feel like there’s a lot of issues around the new construction process. And you know, we have the there’s a builder, then there’s a sales rep and you know, so that right there kind of feels just like we’re battling each other in that regard.
So they’ve decided not to cooperate. Some of them have decided, you know, we’re not going to cooperate so much with the realtor. So we’re not going to, you know, compensate you. And there’s a lot of stipulations around that. But something that really bothers me is in the contracts that they have the right to terminate for whatever reason at all.
So when you have someone that’s purchasing a new construction and they’ve gone through this process and then they sell their home, you know, let’s just use that as an example and then they get closer. This is a true story. Within forty five days of closing on their new construction, the custom home builder terminated the contract, so he terminated the contract and would not.
We understand that there’s price fluctuation and sometimes something extreme happens, but wasn’t even given to the the buyer as an opportunity to make up that difference.
It was no terminate. So, you know, the fact that the prices have been increasing and it just feels really kind of slimy that someone would take that to their gain by terminating a contract and potentially selling it to someone else? You know, if the client was extremely difficult and there were some challenges along the way, I mean, I’m sure there’s other factors that were considered in that.
But I’ve heard about this at least a dozen times in our area, and I didn’t know that until I spoke to Leslie. And she said that she is going to the National Association of Builders, and she’s presenting these challenges that we’re having. So maybe we can get something regulated in a sense that either, you know, we hold them to a higher standard. Right. And there’s some fair fairness as far as cooperation goes.
So I’m really excited and interested to see what comes of that because I think there needs to be some, you know, we need some help there. Yeah, a little out of control for many years.
There’s a whole host of issues there because you just offer bonuses and now they’re like, you ain’t going to pay you well.
Compensation aside, there’s a whole host of other issues.
I mean, that was, and so the other issues would end up being things like, you know, you can list your home as an owner for sale by owner but not put it on the market and not put it in MLS. But then they put other ones in and put some of them in. But then the sales agents don’t have to be licensed because they work for the owner.
Now, doesn’t everybody end up working for the owner at the end of the day? Because can’t I say if I hired an agent that this person is working for me is an owner? And that’s the same argument opportunity, really.
Presentation in that sales rep is working, like you said, for the builder who’s really advocating for the buyer and they’re, you know, you think that it’s a new construction and it’s easy and I don’t need representation, but that is wrong. There are many, many things that you need someone, you need the oversight and you need help with.
And I just I think it’s wrong. And we we did talk about that and it was brought up well, you know, it’s it’s no different than it for sale by owner. This builder owns this property. He has the right to sell it without a realtor. Right. But that’s crossing the line, in my opinion, of what’s truly happening right there listing on MLS. Then they have this handful of them over here that I could get you in here or there, and it’s not out there.
So it kind of violates a clear cooperation as well. But they they did come back to me in that discussion and say, well, it’s no different than a for sale by owner, but it is what for sale by owner has like a whole inventory of
Homes and has a person sitting in there. Yeah, and discussing them.
There’s it’s not the owner, right? Yeah, I believe there needs to be something.
I typically don’t have a representative. It’s the owner. And this is not. That case, so stay tuned, we’ll see what happens.
Let’s see if we can get some changes made there. Well, might take a while, but at least the discussion has been started.