Profile picture for Brad Le

Shady Builder?

I signed up a client to a new construction deal with Toll Brothers in Dublin, CA back in April. Well, the market has changed and my clients backed out of the deal so they could buy a single family home with another builder instead of the townhome with Toll Brothers.

Obviously Toll Brothers didn't want to lose them, so they tried to upsell them to one of their single family homes. They were willing to negotiate on the price, but brought up my commission and implied that the deal could work if they didn't have to pay the 3% broker's fee that I would be obligated to.

That definitely doesn't seem like a good business practice for builders to be getting into, especially in a market where they need us even more.

Any thoughts on this? Is there something that can be done to avoid these back alley deals??
  • September 19 2007 - US
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Answers (3)

Profile picture for Rate A Home
As a Builder myself, BAD move. If a builder wants to shoot themselves in the foot use the tactic you described. Once they make the black list of area agents there's a long road to getting that relationship back. Hopefully you saved your clients.

1 happy customer = 1 referral from the happy customer which would be you in this case.

1 unhappy customer = 10 others who will hear the story, in the case of the Internet these days, 10 is a small number.
  • September 20 2007
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Brad, that was really stupid on the builders part. You should talk to your manager/broker ASAP to have them call the builder.
  • September 20 2007
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Profile picture for Rate A Home
You (or your broker) may want to call the builders sales manager and question if that's their policy.
  • September 21 2007
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